FDVV - PEY Gets The Job Done But Has Poor Holdings
2024-06-11 02:42:44 ET
Summary
- Invesco High Yield Equity Dividend Achievers ETF has a strong historical performance with price returns of 57% and total returns of over 136% in the last ten years.
- PEY focuses on dividend-paying companies with a starting dividend yield of 5%. It has ten years of consecutive dividend raises and a solid dividend growth rate.
- The Fund's holdings are concentrated in about 50 companies, with limited exposure to the technology sector, which may hinder its price performance.
- The mix of holdings and sector exposure presents some vulnerabilities.
- While PEY gets the job done, it also significantly underperforms peers such as SCHD or FDVV.
Overview
There are so many different styles of dividend ETFs out there, and it can be difficult to know which one is best. I recently came across the Invesco High Yield Equity Dividend Achievers ETF ( PEY ) and wanted to analyze what separates its strategy and focus from other popular dividend ETFs. PEY has an inception dating back to 2004, so we have a ton of historical performance here that we can also reference and compare. Over the last ten years, we can see that the fund has delivered price returns of 57%, while the high yielding distributions have boosted the total return to over 136% over the same period....
PEY Gets The Job Done But Has Poor Holdings