- DHS tracks an index of over 300 securities weighted by aggregate dividends. It has been the second-best-performing high-dividend ETF since October, outpacing the S&P 500 by 10%.
- These results are in contrast to DHS's performance since its June 2006 launch. I'll make the case that relying primarily on past performance when screening for ETFs is incredibly misleading.
- Its estimated dividend yield is 3.41% after deducting 0.38% in fund fees. High expenses are bad features of high-dividend ETFs, so I advise against holding DHS over the long run.
- Still, investors should be encouraged by its 15x forward P/E, double-digit EPS growth rate, and 0.89 five-year beta. DHS is nicely balanced between growth and value, and the monthly dividend payments are a bonus.
- I'm rating DHS as a cautious buy. While its fundamentals look great, a lot of its recent success is attributed to rising oil prices. With the Fed set on combating inflation, it may be prudent to take profits.
For further details see:
WisdomTree U.S. High Dividend Fund: Slow Down, You're Moving Too Fast