Equity: U.S. - High Dividend Yield
With 12 ETFs and over $99.26B in combined AUM, the Equity: U.S. - High Dividend Yield segment provides exposure to the U.S. space with a focus on High Dividend Yield securities.
Year-to-date, the best-performing ETF in the segment is the First Trust Value Line Dividend Index Fund (FVD), with a total return of 23.69%. Meanwhile, the most popular ETF is the Vanguard High Dividend Yield ETF (VYM) with $28.11BB in assets under management.
Investors should take a look at the Vanguard High Dividend Yield ETF (VYM). This fund has been chosen as an Analyst Pick by FactSet, thus is the best ETF for the average investor. VYM tracks the FTSE High Dividend Yield Index. The index selects high-dividend-paying US companies, excluding REITS, and weights them by market cap. VYM has an expense ratio of 0.06% and tracks the FTSE High Dividend Yield Index.
ETF.com Efficiency Insight
The average efficiency score in the Equity: U.S. - High Dividend Yield segment is 91 out of 100, with the iShares Core High Dividend ETF(HDV) obtaining the highest rating of 100 out of 100.
Costs dominate the discussion around efficiency. ETFs in the segment have an average expense ratio of 0.38% per year, with the Schwab U.S. Dividend Equity ETF (SCHD) having the lowest expense ratio, charging investors 0.06% yearly.
Investors should look for funds with tight tracking, such as the Schwab U.S. Dividend Equity ETF (SCHD), with a 12-month median tracking difference of -0.08%.
ETF.com Tradability Insight
The average tradability score in the Equity: U.S. - High Dividend Yield segment is 95 out of 100, with the Vanguard High Dividend Yield ETF(VYM) obtaining the highest rating of 100 out of 100.
The Vanguard High Dividend Yield ETF (VYM) is the undisputed segment leader when it comes to liquidity. The fund trades 99.71M in daily average volume. Investors should also find ample liquidity in the SPDR S&P Dividend ETF (SDY), with $58.42M in daily dollar volume.
Use limit orders to trade funds such as the WBI Power Factor High Dividend ETF(WBIY), due to their double-digit market spreads.
ETF.com Fit Insight
The MSCI USA IMI High Yield Dividend Index has been selected as the index that most accurately represents the market in question. The benchmark has been selected by the ETF Analytics team at FactSet, according to a series of guidelines to ensure this index accurately captures its market.
Investors trying to match a broad market exposure should pay attention to VYM. This fund obtains a high Fit score and investors should capture market-like returns.
Other funds diverge from the market, by nature of their investment mandates; for example, DIV follows a Multi-factor strategy and obtains a low Fit score compared with our neutral benchmark.