What is ishares select divident ETF

The iShares Select Dividend ETF (DVY) is a popular exchange-traded fund (ETF) that provides investors with exposure to a select group of U.S. companies with a history of consistently paying dividends. Here are key details about the ETF:

1. Objective: DVY aims to track the results of the Dow Jones U.S. Select Dividend Index, which focuses on companies that have demonstrated a strong dividend-paying track record.
2. Holdings: The ETF's holdings are diversified across various sectors, including basic materials, communication services, consumer cyclical, consumer defensive, energy, financial services, healthcare, industrials, real estate, technology, and utilities. This diversification helps minimize single-stock risk.
3. Dividend Yield: DVY has a trailing 12-month dividend yield of approximately 3.89% as of the latest data. This is a competitive yield compared to traditional ETFs that track the S&P 500 or Nasdaq-100.
4. Expense Ratio: The fund has an annual operating expense ratio of 0.38%, which is considered low and competitive within the ETF space. This means that for every dollar invested, investors can expect to pay only 0.38 cents in fees.
5. Performance: DVY has shown a positive performance trend, with a closing price of $135.07 and a percentage change of 1.7% as of the latest data.

6. Investment Strategy: The ETF employs a representative sampling indexing strategy, which involves investing in a subset of stocks that mimic the characteristics of the underlying index. This approach aims to achieve the performance of the Dow Jones U.S. Select Dividend Index while managing costs and operational complexities.

In summary, the iShares Select Dividend ETF is a solid choice for investors seeking exposure to a select group of U.S. companies with a strong dividend-paying history, all while keeping costs low and maintaining a reasonable yield.