DVY: ISHARES SELECT DIVIDEND ETF
ETF Education Report: ISHARES SELECT DIVIDEND ETF (DVY)
What this ETF is trying to do
The ISHARES SELECT DIVIDEND ETF (ticker: DVY) is an exchange-traded fund designed to focus on dividend-paying companies. Instead of buying just one company, this ETF holds a collection of different stocks. Based on the provided data, the fund holds 103 different companies.
Top Holdings
The following are some of the largest companies held in this fund (note that this is a partial list):
• HP INC (2.48%)
• PFIZER INC (2.32%)
• PRUDENTIAL FINANCIAL INC (2.21%)
• ALTRIA GROUP INC (2.17%)
• T. ROWE PRICE GROUP INC (2.05%)
• ONEOK INC (1.80%)
• VERIZON COMMUNICATIONS INC (1.79%)
• TARGET CORP (1.78%)
What the numbers show
When looking at an ETF, it is important to understand two different types of returns: price return and total return.
• Price Return: This measures only the change in the share price.
• Total Return: This includes both the share price change AND any cash distributions (dividends) paid out.
For DVY, the numbers show:
• Year-to-Date (YTD): The price return is approximately 9.37%, while the total return is approximately 12.00%.
• One Year: The price return was approximately 9.72%, while the total return was approximately 13.65%.
• Three Year: The price return was approximately 44.99%, while the total return was approximately 61.66%.
To give you an idea of price movement, the estimated price from roughly one year ago was $140.68. The current price is $154.36.
Income and distribution explanation
This ETF provides cash to investors through distributions. The distribution yield is currently approximately 3.46%. This number describes the cash paid out relative to the ETF's price.
The fund usually pays these distributions quarterly, and it has made 4 payments over the last 12 months. It is important to remember that a distribution yield tells you about cash income, but it is not the same thing as your total return.
NAV erosion explanation
"NAV erosion" refers to a situation where the value of the underlying assets in the fund decreases over time. Some investors worry that high payouts might cause this. However, for DVY, the erosion-risk score is 100, and the label states "No price erosion detected." There is no severe erosion-risk flag for this ETF.
Pros
• The fund has shown positive price returns and total returns over the one-year and three-year periods.
• It has a high income rating grade of "A."
Cons
• The list of holdings provided is only a partial list, meaning there are many other companies in the fund that are not shown here.
• As with all ETFs, holdings can change over time.
Beginner takeaway
When looking at DVY, it is helpful to distinguish between the share price and the total return. While the share price has grown, the total return is even higher because it includes the cash distributions paid to investors. Always remember that a distribution yield shows income, but you should look at the total return to see how the investment performed overall.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | HP INC | HPQ | 2.50% |
| 2 | PFIZER INC | PFE | 2.33% |
| 3 | ALTRIA GROUP INC | MO | 2.21% |
| 4 | PRUDENTIAL FINANCIAL INC | PRU | 2.17% |
| 5 | T. ROWE PRICE GROUP INC | TROW | 2.08% |
| 6 | ONEOK INC | OKE | 1.81% |
| 7 | VERIZON COMMUNICATIONS INC | VZ | 1.80% |
| 8 | TARGET CORP | TGT | 1.75% |
| 9 | VALERO ENERGY CORP | VLO | 1.55% |
| 10 | KIMBERLY-CLARK CORP | KMB | 1.52% |