The iShares Core High Dividend ETF (HDV) offers solid returns and low expenses, making it a strong choice for dividend-focused investors.
New York: The iShares Core High Dividend ETF, or HDV, launched back in 2011. It’s designed to give you broad access to large-cap value stocks. If you’re into smart beta ETFs, this one’s worth a look.
So, what’s a smart beta ETF? Well, they’re different from the usual market cap-weighted funds. Instead of just following the market, they aim to pick stocks that might perform better based on certain criteria. If you like the idea of selecting stocks to beat the market, smart beta could be your jam.
HDV is managed by Blackrock and has over $11 billion in assets. It tries to match the performance of the Morningstar Dividend Yield Focus Index, which focuses on U.S. companies with strong financial health and solid dividend payouts.
When it comes to costs, HDV is pretty affordable with an expense ratio of just 0.08%. Plus, it offers a decent 12-month trailing dividend yield of 3.65%. That’s not too shabby!
In terms of sector exposure, the fund leans heavily into the Energy sector, which makes up about 27.20% of its portfolio. Other big sectors include Consumer Staples and Healthcare. Its top holdings include Exxon Mobil, Johnson & Johnson, and Chevron, which together account for over half of the fund’s assets.
Looking at performance, HDV has gained about 0.47% this year and is up around 13.32% over the past year. It’s been trading between $101.80 and $121.28 in the last 52 weeks, showing some solid movement.
If you’re considering alternatives, there are other ETFs like Schwab U.S. Dividend Equity ETF and Vanguard Value ETF that might catch your eye. They have lower expense ratios and significant assets under management.
In short, if you’re after a solid dividend ETF, HDV is a strong contender. Just make sure to check out other options to see what fits your investment style best.
