For immediate release
Chicago, IL – May 18, 2022 – Zacks.com announces the list of stocks featured in the analyst blog. Every day, Zacks Equity Research analysts discuss the latest news and events impacting stocks and financial markets. ETFs recently featured in the blog include: Morningstar Dividend Leaders Index Fund FDL, WisdomTree US High Dividend Fund DHS, iShares Core High Dividend ETF HDV, Pacer Global Cash Cows Dividend ETF GCOW and Invesco S&P 500 High Dividend Low Volatility ETF SPHD.
Here are the highlights from Tuesday’s analyst blog:
5 Dividend ETFs Crushing the Market This Year
Dividend investing is in vogue amid volatility and uncertainty in the face of skyrocketing inflation, rising interest rates and a gloomy economic outlook. This is especially true since they are major sources of consistent income for investors in any type of market, although they do not offer dramatic price appreciation.
Thus, many dividend ETFs are on the rise. Morningstar Dividend Leaders Index Fund, WisdomTree US High Dividend Fund, iShares Core High Dividend ETF, ETF Pacer Global Cash Cows DividendandInvesco S&P 500 High Dividend Low Volatility ETF are leading this year and will continue to rise given the prevailing market uncertainty (read: A guide to the 10 most popular dividend ETFs).
Dividend-focused products offer security through payouts and stability in the form of mature companies that are less volatile amid wild swings in stock prices. This is because companies that pay dividends typically act as a hedge against economic uncertainty and provide downside protection by regularly offering outsized payouts or large returns.
The S&P 500 posted the longest weekly losing streak since 2011 and the Dow Jones recorded the first seven-week losing streak since 2001. The tech-heavy Nasdaq Composite saw the sixth straight weekly decline. Notably, the S&P 500 had the worst start to a year since 1939 and is on the verge of bearish territory (read: 5 beaten ETFs to buy at attractive prices).
The Fed has started raising interest rates more aggressively to fight inflation that will hurt consumers and businesses. However, consumer spending remains strong given strong wage growth and a falling unemployment rate. The central bank raised interest rates by 50 basis points, marking the biggest rise in interest rates since 2000.
Concerns about the COVID-19 variant and the resulting containment measures in China have raised worries about the global economic expansion that will continue to weigh on investor sentiment. Additionally, a war in Ukraine has worsened disruptions in the movement of goods across borders, driving up food and energy prices and threatening corporate profits. Corporate results were weaker than expected for the first quarter.
Let’s dive deeper into the ETFs mentioned above:
First Trust Morningstar Dividend Leaders Index Fund – up 6.6%
The First Trust Morningstar Dividend Leaders Index Fund offers exposure to stocks that have demonstrated the greatest consistency and sustainability of dividends when tracking the Morningstar Dividend Leaders Index. He has 98 stocks in his basket, with key holdings in healthcare, consumer staples, communications services and utilities.
With an AUM of $2.5 billion, the First Trust Morningstar Dividend Leaders Index Fund charges investors 45 basis points in annual fees and trades a solid volume of around 910,000 shares per day. It has a Zacks ETF Rank #3 (Hold) with a medium risk outlook.
WisdomTree US High Dividend Fund – up 6.5%
The WisdomTree US High Dividend Fund provides exposure to high yielding US corporate stocks by tracking the WisdomTree US High Dividend Index. It has 314 stocks in its basket, with key holdings in energy, healthcare, consumer staples, financials and utilities each representing double-digit exposure.
WisdomTree US High Dividend Fund has amassed $1 billion in its asset base and trades a solid volume of around 86,000 shares daily. It charges 8 basis points in fees per year and has a No. 3 Zacks ETF rating with a medium-risk outlook (read: 6 dividend ETFs up at least 6% year-to-date and yielding a at least 3%).
iShares Core High Dividend ETF – Up 5.9%
iShares Core High Dividend ETF provides exposure to 75 high-quality, high-dividend stocks. It tracks the Morningstar Dividend Yield Focus Index and has a light focus on top companies, each with no more than 8.2% share.
iShares Core High Dividend ETF has an AUM of $10.1 billion and trades in a solid volume of around 1.3 million shares per day. It charges 8 basis points in fees per year and has a Zacks ETF No. 3 rating with a medium risk outlook.
ETF Pacer Global Cash Cows Dividend – Up 5.3%
The Pacer Global Cash Cows Dividend ETF attempts to provide a continuous stream of income and capital appreciation over time by seeking companies with high free cash flow yield and high dividend yield. It holds 101 stocks in its basket and charges investors 60 basis points in fees per year.
The Pacer Global Cash Cows Dividend ETF was able to manage $389.2 million in its asset base and trades an average daily volume of 164,000 shares.
Invesco S&P 500 High Dividend, Low Volatility ETF – up 4.8%
The Invesco S&P 500 High Dividend Low Volatility ETF provides exposure to 51 stocks traded on the S&P 500 Index that have historically provided high dividend yields and low volatility. It tracks the S&P 500 Low Volatility High Dividend Index. The Invesco S&P 500 High Dividend Low Volatility ETF is broadly spread across all sectors, with utilities, consumer staples, healthcare and real estate each enjoying double-digit exposure.
Invesco S&P 500 High Dividend Low Volatility ETF has raised $3.8 billion and charges 30 basis points in annual fees. The fund trades an average daily volume of 2 million shares.
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Past performance is not indicative of future results. The potential for loss is inherent in any investment. This document is provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold any security. No recommendation or advice is given as to whether any investment is suitable for any particular investor. It should not be assumed that investments in the securities, companies, sectors or markets identified and described have been or will be profitable. All information is current as of the date hereof and is subject to change without notice. The views or opinions expressed may not reflect those of the company as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management of securities. These returns come from hypothetical portfolios composed of stocks with Zacks Rank = 1 that have been rebalanced monthly without transaction fees. These are not the returns of actual stock portfolios. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for more information on the performance figures displayed in this press release.
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First Trust Morningstar Dividend Leaders ETF (FDL): ETF Research Reports
iShares Core High Dividend ETF (HDV): ETF Research Reports
WisdomTree US High Dividend ETF (DHS): ETF Research Reports
Invesco S&P 500 High Dividend Low Volatility ETF (SPHD): ETF Research Reports
ETF Pacer Global Cash Cows Dividend (GCOW): ETF Research Reports
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.