Is iShares Select Dividend ETF (DVY) a Strong ETF Right Now?
A smart beta exchange traded fund, the iShares Select Dividend ETFDVY-- (DVY) debuted on 11/03/2003, and offers broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
DVY is managed by BlackrockBLK--, and this fund has amassed over $23.53 billion, which makes it one of the largest ETFs in the Style Box - Large Cap Value. Before fees and expenses, DVYDVY-- seeks to match the performance of the Dow Jones U.S. Select Dividend Index.
The Dow Jones U.S. Select Dividend Index measures the performance of a selected group of equity securities issued by companies that have provided relatively high dividend yields on a consistent basis over time.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Operating expenses on an annual basis are 0.38% for DVY, making it on par with most peer products in the space.
DVY's 12-month trailing dividend yield is 3.25%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Representing 25.7% of the portfolio, the fund has heaviest allocation to the Financials sector; Utilities and Consumer Staples round out the top three.
Looking at individual holdings, Prudential Financial Inc (PRU) accounts for about 2.21% of total assets, followed by Hp Inc (HPQ) and Pfizer (PFE).
The top 10 holdings account for about 18.82% of total assets under management.
Performance and Risk
The ETF return is roughly 16.28% and is up about 18.32% so far this year and in the past one year (as of 09/11/2026), respectively. DVY has traded between $137.33 and $165.50 during this last 52-week period.
DVY has a beta of 0.66 and standard deviation of 13.54% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 106 holdings, it effectively diversifies company-specific risk .
Alternatives
iShares Select Dividend ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
Schwab U.S. Dividend Equity ETF (SCHD) tracks Dow Jones U.S. Dividend 100 Index and the Vanguard Morningstar Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. Schwab U.S. Dividend Equity ETF has $110.18 billion in assets, Vanguard Morningstar Value ETF has $190.16 billion. SCHD has an expense ratio of 0.06% and VTV changes 0.03%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value
Bottom Line
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iShares Select Dividend ETF (DVY): ETF Research Reports
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