HIDV: AB US HIGH DIVIDEND ETF
ETF Education Report: AB US HIGH DIVIDEND ETF (HIDV)
What this ETF is trying to do
The AB US High Dividend ETF (ticker: HIDV) is an exchange-traded fund that focuses on providing high dividends to its investors. It holds a variety of different companies within its portfolio.
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. For HIDV, the year-to-date (YTD) price return is approximately 11.83%. Over the last year, the price return was approximately 13.87%. Looking further back, the three-year price return was approximately 63.89%.
• Total Return: This is a more complete measure because it includes both the share price changes and the money paid out through distributions. The YTD total return is approximately 14.04%, and the one-year total return is approximately 17.66%. Over three years, the total return was approximately 77.15%.
To give you an idea of price movement, the current price is $90.20. The estimated price from roughly one year ago was approximately $79.22.
Income and distribution explanation
This ETF pays out cash to investors, which is called a distribution. The distribution yield for HIDV is approximately 3.03%. This number describes the cash distributions relative to the current ETF price. Over the last 12 months, there were 5 payouts. While these payments provide cash income, they are not the same as total return.
NAV erosion explanation
"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases over time. Some investors worry that high payouts might cause this. However, for HIDV, the erosion-risk score is 100, and the label states "No price erosion detected." There is no severe erosion-risk flag for this ETF.
Top Holdings
The following are the top holdings in this portfolio (note that this is a partial list):
• NVIDIA CORP: 8.48%
• APPLE INC: 7.09%
• MICROSOFT CORP: 5.03%
• ALPHABET INC CLASS A: 3.07%
• AMAZON.COM INC: 3.00%
• MICRON TECHNOLOGY INC: 2.88%
• BROADCOM INC: 1.93%
• ALPHABET INC CLASS C: 1.65%
• META PLATFORMS INC CLASS A: 1.60%
• PLTR: 1.44%
Pros
• The ETF has shown positive price returns and total returns over the last year and three years.
• The erosion-risk measurement is considered "good."
Cons
• The list of holdings provided is only a partial list of the 106 total holdings.
• Holdings can change over time.
Beginner takeaway
When looking at high-dividend ETFs, remember that a high distribution yield does not guarantee the share price will stay the same. Always look at the total return to see how both price changes and cash payments have affected the investment over time.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | NVIDIA CORP | NVDA | 9.45% |
| 2 | APPLE INC | AAPL | 7.03% |
| 3 | MICROSOFT CORP | MSFT | 5.27% |
| 4 | ALPHABET INC CLASS A | GOOGL | 3.00% |
| 5 | AMAZON.COM INC | AMZN | 2.92% |
| 6 | MICRON TECHNOLOGY INC | MU | 2.63% |
| 7 | BROADCOM INC | AVGO | 1.77% |
| 8 | ALPHABET INC CLASS C | GOOG | 1.62% |
| 9 | LAM RESEARCH CORP | LRCX | 1.58% |
| 10 | META PLATFORMS INC CLASS A | META | 1.57% |