While strategies may differ, performance among the various dividend-focused ETFs this year has been similar. The top 10 best-performing dividend ETFs, for instance, have year-to-date returns ranging from 22% to 28.4%—not a huge spread.
The First Trust Dorsey Wright Momentum & Dividend ETF (DDIV) leads the pack. The fund bolstered its returns by picking dividend stocks with the best price momentum.
Meanwhile, the VictoryShares Dividend Accelerator ETF (VSDA) is another one on the list. It’s a fund that looks for dividend-growth stocks, but rather than look at history, it uses 15 fundamental and technical metrics to gauge which stocks will increase their payouts.
The aforementioned VIG, the largest dividend ETF of all, rounds out the top three on the best-performing dividend ETF list.
Best-Performing Dividend ETFs
Dividend ETFs have seen solid inflows this year. The 10 most popular funds based on inflows have gathered a combined $14.9 billion on a year-to-date basis.
Unsurprisingly, VIG headlines the inflows list, with $3.4 billion of fresh cash from investors. The fund’s time-tested dividend growth strategy has resulted in solid gains, and that’s resonating with investors.
Another Vanguard fund, the aforementioned VYM—which tracks high-yield stocks—also makes the top inflows list, with creations of $1.8 billion. VYM is a favorite for those seeking solid yield that is almost double what you can get in the 10-year Treasury.
The iShares Core Dividend Growth ETF (DGRO), the First Trust Value Line Dividend Index Fund (FVD) and the Schwab U.S. Dividend Equity ETF (SCHD) round out the top five dividend flow recipients for 2019.
Dividend ETFs With The Largest Inflows