A Focus on Well-Known & Lesser-Known Dividend ETFs

Core Insights - There are 17 ETFs with over $100 billion in assets, with Vanguard FTSE Emerging Markets ETF (VWO) and Vanguard Dividend Appreciation ETF (VIG) nearing this milestone [1] - Investors are shifting focus to dividend-paying securities as bond yields decline, with dividend ETFs attracting $2.3 billion in net inflows in August [2] Dividend ETFs Overview - VIG tracks U.S. companies that have raised dividends for at least 10 consecutive years, with a sector concentration of 27% in information technology, 23% in financials, and 15% in health care [3] - The fund has limited exposure to energy (3%), materials (3%), utilities (3%), and communications services (1%), and was up 8.3% year-to-date as of September 3, gathering $350 million in net inflows in August [4] Comparison of Major Dividend ETFs - The Schwab US Equity ETF (SCHD) is the second-largest dividend ETF with $73 billion in assets, focusing on dividend quality and sustainability [5] - SCHD has a top weighting of 19% in energy and consumer staples, with only 9% exposure to information technology, and was up 3.8% year-to-date with $185 million in net outflows in August [6] Sector-Specific Dividend ETFs - The ProShares S&P Technology Dividend Aristocrats ETF (TDV) includes technology companies that have raised dividends for at least seven consecutive years, consisting of 38 companies [7][8] - TDV managed $250 million in assets and was up 11% year-to-date through September 4, but saw negligible flows in August [9] NDIV Overview - The Amplify Natural Resources Dividend Income ETF (NDIV) focuses on high-dividend yielding companies in energy and materials, with 50% of assets in upstream energy companies [10] - NDIV has approximately $25 million in assets, a 5% distribution rate, and was up 9.3% year-to-date, warranting further scrutiny [11]