The Invesco DJD ETF offers exposure to high-yield stocks, but is it the right choice for your portfolio?
So, what’s the deal with smart beta ETFs? They’re a bit different from the usual market cap-weighted funds. While those funds just follow the market, smart beta aims to pick stocks based on certain criteria. This could mean looking at things like dividend yield or other fundamental factors. The idea is to find stocks that might perform better over time.
DJD is managed by Invesco and has around $322 million in assets. It tracks the Dow Jones Industrial Average Yield Weighted Index, which focuses on high-yield stocks in the Dow. This means it’s all about those companies that have been paying out dividends consistently.
When it comes to costs, DJD is pretty affordable with an expense ratio of just 0.07%. That’s lower than many other options out there. Plus, it has a trailing dividend yield of 2.25%, which is decent for income-seeking investors.
In terms of sector exposure, DJD has a big chunk in Financials, followed by Information Technology and Healthcare. Its top holdings include Verizon, Chevron, and Cisco, making up a significant part of the fund.
Looking at performance, DJD has seen a slight increase of about 0.33% this year and is up around 13.73% over the past year. It’s been trading between $45.23 and $54.19 in the last 52 weeks, showing some stability.
If you’re considering alternatives, there are other ETFs like the iShares Core S&P 500 ETF and the SPDR S&P 500 ETF that might be worth a look. They track the S&P 500 and have larger asset bases, which can be appealing.
In the end, DJD could be a solid choice for those wanting to invest in high-yield stocks. But it’s always good to compare with other options to see what fits your investment goals best. If you want to dive deeper into ETFs, check out resources like Zacks ETF Center for more insights.
