MutualFundWire.com: Are Dividend ETFs the Next Big Thing?
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Tuesday, March 30, 2010

Are Dividend ETFs the Next Big Thing?


A dividend-trend may be again approaching, according to The Wall Street Journal's Fund Track Tuesday, and exchange-traded funds could become useful yield-generating vehicles.

Should interest rates rise, investors will surely move from bond funds into stock funds, even with the corresponding financial risk.

The largest dividend ETF is the iShares Dow Jones Select Dividend Index Fund, which holds about $4 billion in assets. The fund gained 11.2 percent in 2009, according to Morningstar, yet was 15.5 percentage points below the S&P 500.

Other popular funds include the Vanguard Dividend Appreciation ETF, SPDR S&P Dividend ETF and WisdomTree LargeCap Dividend Fund.


Printed from: MFWire.com/story.asp?s=31787

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