2013 was another year full of record-low interest rates, prompting income investors to turn their attention elsewhere. For the past few years, dividend ETFs have been among the hottest in the investing space, as many individuals and institutions have sought the income stream these products offer. While a strong dividend is nice, receiving it from a security that lost ground during the year may not be enough to overcome the damage that was done. On the flip side, a dividend from a security that saw strong gains is an added bonus for many [for more ETF news and analysis subscribe to our free newsletter].
Below, we break down the best and worst performing dividend ETFs from 2013. Please note that these are funds that are classified as dividend-focused, and not those that simply pay out a dividend. Funds that were launched this year were excluded from this list as they did not have a full calendar year under their belts.
Best Performing Dividend ETFs of 2013 ETRACS Monthly Pay 2x Leveraged S&P Dividend ETN (SDYL) 57.28% ETRACS Monthly Pay 2x Leveraged Dow Jones Select Dividend Index ETN (DVYL) 53.97% Europe SmallCap Dividend Fund (DFE) 36.51% Middle East Dividend ETF (GULF) 35.74% FlexShares Quality Dividend Dynamic Index Fund (QDYN) 32.49% SmallCap Dividend Fund (DES) 32.03% FlexShares Quality Dividend Index Fund (QDF) 31.66% Sector Dividend Dogs ETF (SDOG) 29.37% Northern Trust Quality Dividend Defensive Index (QDEF) 29.33% MidCap Dividend Fund (DON) 28.99% US Dividend Equity ETF (SCHD) 28.18% High Yield Dividend Achievers (PEY) 26.26% SPDR S&P Dividend ETF (SDY) 26.12% High Dividend Yield ETF (VYM) 25.72% iShares Select Dividend ETF (DVY) 24.92%
Worst Performing Dividend ETFs of 2013 High Income ETF (YYY) 7.78% S&P Global Dividend Opportunities Index ETF (LVL) 3.51% SPDR Income Allocation ETF (INKM) 1.32% SPDR S&P International Dividend ETF (DWX) 1.30% iShares Asia/Pacific Dividend ETF (DVYA) 0.68% Australia Dividend Fund (AUSE) -0.35% China Dividend ex-Financials ETF (CHXF) -2.91% Commodity Country Equity Fund (CCXE) -3.42% Asia Pacific ex-Japan Fund (AXJL) -3.49% Emerging Market SmallCap Fund (DGS) -4.65% Emerging Markets Equity Income Fund (DEM) -9.15% Low Volatility Emerging Markets Dividend ETF (HILO) -11.50% iShares Emerging Markets Dividend ETF (DVYE) -12.04% Global Natural Resources Fund (GNAT) -12.85% SPDR S&P Emerging Markets Dividend ETF (EDIV) -13.68%
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