ETF Overview
The iShares Select Dividend ETF (DVY) invests in high yielding stocks from the U.S. market. The fund tracks the Dow Jones U.S. Select Dividend Index. DVY’s screening approach only looks at selective financial metrics in the past 5 years and may not be enough to screen out stocks that are more vulnerable to dividend cuts. DVY is currently trading at lower valuations than their peers, but it has a much inferior growth outlook than its peers. Despite its 5.2%-yielding dividend, its long-term total return is not impressive. Therefore, we think investors