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Dividend ETFs Rake in $2 Billion in Third Quarter


Dividend ETFs remain popular as investors prefer funds that offer above-average yields and conservative strategies for exposure to the stock market.

“Dividend-weighted funds have continued to catch on, as the current quarter’s money flows prove. Some $2 billion of new capital have flowed into such products in the quarter, or 4% of the total,” says ConvergEx Group chief market strategist Nicholas Colas.

So which dividend ETFs are investors buying?

A pair of funds managed by BlackRock gathered more than $1 billion combined in the third quarter.

The iShares High Dividend Equity (HDV) led all dividend ETFs with investors adding $575.6 million in the third quarter, according to IndexUniverse data, followed by iShares Dow Jones Select Dividend (DVY) with inflows of $566.1 million. [A Dividend ETF That Screens Out Volatile Stocks]

HDV has a 30-day SEC yield of 3.5%, while DVY pays 3.6%, according to BlackRock.

A dividend ETF that invests in emerging markets also made big strides in the third quarter. WisdomTree Emerging Markets Equity Income (DEM) collected $418.9 million. The 30-day SEC yield is 3.5%. [Emerging Market Dividend ETFs: How to Choose the Right Fund]

Other dividend ETFs that piled up inflows of more than $100 million in the third quarter include Vanguard High Dividend Yield (VYM), Vanguard Dividend Appreciation (VIG) and WisdomTree Dividend Ex-Financials (DTN) . [An ETF That Tracks Quality Dividend Stocks]

The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.