WELL - Is It Time To Ditch Market Cap Weighted High Dividend ETFs For Alternatively Weighted Ones?

• Market cap weighting, which is used by the high dividend ETF SCHD, makes for great performance when momentum is upwards, but drags it down when momentum turns down.
• We look at several actively traded Dividend-focused ETFs that use alternative weighting methods: equal weight and dividend weighting.
• SPYD and DVY have held up the best during the 2022 market swoon. We analyze several reasons why.
• Diving into the holdings of these ETFs we learn that dividend weighting for high dividend stocks produces weights very similar to equal weighting. But what matters most is the screening used to pick the weighted stocks.

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