Dividend ETF

Dividend ETF

Any exchange-traded fund that seeks to provide high yields by investing in a basket of high-dividend-paying common stocks, preferred stocks or REITs. There are dividend ETFs that contain only U.S. domestic stocks and global dividend ETFs, which have an international focus. The indexes used to create dividend ETFs vary by fund manager or custodian, but most contain stocks with a high level of liquidity and above-market dividend yields.

Although dividend ETFs are passively managed around an index, that index may be the result of certain quantitative screens, such as companies with a history of increasing their dividends, or larger blue-chip companies with a higher level of perceived safety.

The expense ratios of dividend ETFs should be comparable to - or lower than - the cheapest no-load mutual funds with similar investment objectives. As with all ETFs, dividend ETFs can be traded intraday. These types of funds may be part of the core portfolio of an income-seeking or generally risk-averse stock investor.


Investment dictionary. . 2012.

Игры ⚽ Нужна курсовая?

Look at other dictionaries:

  • Dividend Drag — A disadvantage of the dividend structure of unit trust exchange traded funds (ETFs) that results from SEC rules that stipulate that passively managed ETFs cannot reinvest dividends back into the portfolio. ETFs must instead accumulate the… …   Investment dictionary

  • Energy ETF — A broad class of ETFs that includes funds focused on oil and gas exploration; the generation, distribution and retail sale of gas and other refined products; electric utilities and alternative energy production. Energy ETFs may invest in only… …   Investment dictionary

  • Communication Industry ETF — An exchange traded fund that invests in telecommunications companies with the objective of replicating the performance of an underlying telecom index. Communication industry ETFs include giant integrated providers of wireless and wire line… …   Investment dictionary

  • Yen ETF — Exchange traded funds that invest primarily in yen backed assets such as short term debt instruments and bonds, or hold the currency in simple interest bearing accounts that pay the current money market yields in Japan. Some Yen ETFs will match… …   Investment dictionary

  • REIT ETF — Exchange traded funds that invest the majority of assets in equity REIT securities and related derivatives. REIT ETFs are passively managed around an index of publicly traded real estate owners; indexes may vary from provider to provider but two… …   Investment dictionary

  • Electric Utilities Industry ETF — An exchange traded fund that invests in companies which generate and distribute electric power. Electric utilities generally account for more than 80% of holdings of the largest utilities ETFs. However, since the balance is taken up by utilities… …   Investment dictionary

  • Emerging Market ETF — An exchange traded fund that focuses on the stocks of emerging market economies, such as Latin America, Asia and Eastern Europe. The underling indexes tracked by emerging market ETFs vary from one fund manager to another, but all should be… …   Investment dictionary

  • Companies listed on the Toronto Stock Exchange (C) — Toronto Stock Exchange listed stocks: 0 9 A B C D E F G H I J K L M N O P Q R S T U V W …   Wikipedia

  • Companies listed on the Toronto Stock Exchange (H) — Toronto Stock Exchange listed stocks: 0 9 A B C D E F G H I J K L M N O P Q R S T U V W …   Wikipedia

  • Companies listed on the Toronto Stock Exchange (B) — Toronto Stock Exchange listed stocks: 0 9 A B C D E F G H I J K L M N O P Q R S T U V W …   Wikipedia

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”