2024-04-05 08:57:23 ET
Summary
- LVHD selects low-volatility, high-dividend U.S. stocks with "stable yield" features, as measured by price and earnings volatility. The ETF pays approximately 4% and has a 0.27% expense ratio.
- Combining volatility and dividend factors has not been a winning long-term strategy. LVHD's Index has substantially lagged the S&P 500 Index over the last 20 years.
- LVHD has also underperformed less volatile alternatives like SPLV and USMV since its inception on December 28, 2015. Reasons include low diversification, stagnant growth, and poor quality.
- Fundamentals slightly improved since my October 2023 review. However, lower-yielding and higher-quality alternatives are more attractive, and I recommend readers avoid LVHD.
Investment Thesis
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For further details see:
LVHD: This 4% Yielding Low-Volatility ETF Keeps Lagging The market