In this article we discuss the 10 best dividend ETFs to buy according to Reddit. If you want to skip our detailed analysis of these ETFs, go directly to the 5 Best Dividend ETFs to Buy According to Reddit.
The volatility in the prices of technology stocks over the past few weeks has reinforced the importance of a diverse investment portfolio that finds the perfect balance between growth and value investing. Since most of the market interest in the recent past was devoted to the skyrocketing value of growth stocks, investors are now scrambling for some much-needed cover against the price volatility in the technology sector. Dividend paying ETFs can serve as a dependable option in this regard, as they market stable outlooks and offer regular payouts.
Some of the other advantages of owning dividend ETFs instead of individual stocks are that the funds are diversified across the industry, potentially lowering the overall risk associated with owning a stock in one sub-sector of the broader industry. It is also easier to manage price volatility in ETFs, although a certain level of risk is ever-present, as with any other investment. ETFs can offer investors significant respite from following the latest developments related to individual companies, freeing up important time that can be spent elsewhere.
Some sectors of the economy are in a better position to offer steady dividend payments and make it to the ETF indexes, such as established business segments like energy, finance, communications, and mining. Some companies that spring to mind in this regard include Rio Tinto Group (NYSE: RIO), Vale S.A. (NYSE: VALE), and Exxon Mobil Corporation (NYSE: XOM). These firms represent some of the top holdings of the best-performing dividend ETFs in the world over the past year.
Rio Tinto Group (NYSE: RIO), Vale S.A. (NYSE: VALE), and Exxon Mobil Corporation (NYSE: XOM) all have an impressive dividend history and are generally less susceptible to the price fluctuations that seem to sweep the market more often than not lately. These traits are generally what set dividend ETFs apart from the crowd in the finance world. However, the fees associated with owning ETFs and the effect an economic downturn might have on the fortunes of the fund are some of the factors that investors should take into account before committing to an ETF.
No sector of the market has been shielded from the profound changes that technology has brought about in our lives. Retail investors, who use internet platforms like Reddit, are having an increasingly important influence on the overall financial dynamics. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26th 2021 our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
With this context in mind, here is our list of the 10 best dividend ETFs to buy according to Reddit. These dividend ETFs are very popular in Reddit communities.
Best Dividend ETFs to Buy According to Reddit
10. iShares Asia/Pacific Dividend ETF (NYSE: DVYA)
Yield: 3.49%
iShares Asia/Pacific Dividend ETF (NYSE: DVYA) is an exchange traded fund that tracks the investment returns of the Dow Jones Asia/Pacific Select Dividend 50 Index which comprises companies that pay a sizeable dividend and are listed on exchanges in Australia, Hong Kong, Japan, Singapore, and New Zealand. The ETF invests at least 80% of total assets in stocks of the underlying index.
iShares Asia/Pacific Dividend ETF (NYSE: DVYA) has more than $45 million in net assets under management. It has a year-to-date daily total return of 11.83% and a net expense ratio of 0.49%. The 52-week price range of the ETF lies between $31 and $42.
One of the top holdings of this fund is Fortescue Metals Group Limited (ASX: FMG.AX), the Australia-based mining company that has stakes in operations related to iron, copper, and gold deposits. The fund has invested close to 4.5% of total assets under management in shares of Fortescue Metals Group Limited (ASX: FMG.AX).
9. First Trust Dow Jones Global Select Dividend Index Fund (NYSE: FGD)
Yield: 3.83%
First Trust Dow Jones Global Select Dividend Index Fund (NYSE: FGD) is an exchange traded fund that tracks the investment results of the Dow Jones Global Select Dividend Index which is an indicated annual dividend yield weighted index comprising companies that fall under the developed market class of the Dow Jones World Index. The fund invests almost 90% of net assets in stocks of the dividend index.
First Trust Dow Jones Global Select Dividend Index Fund (NYSE: FGD) has more than $470 million in net assets under management and the year-to-date daily total return of the fund is a remarkable 23.3%. The price of the fund has hovered between $17 and $27 over the past 52 weeks.
A leading holding of the fund is Centamin plc (LSE: CEY.L), a Jersey-based mining company with interests in precious metals projects in Egypt, Burkina Faso, Australia, and the United Kingdom. The fund has invested close to 1.43% of total assets under management into shares of Centamin plc (LSE: CEY.L).
8. Global X MSCI SuperDividend EAFE ETF (NASDAQ: EFAS)
Yield: 3.89%
Global X MSCI SuperDividend EAFE ETF (NASDAQ: EFAS) is an exchange traded fund that tracks the investment results of the MSCI EAFE Top 50 Dividend Index which comprises equally weighted companies that pay a sizeable dividend and are working in Europe, Australia, and the Far East.
Global X MSCI SuperDividend EAFE ETF (NASDAQ: EFAS) has more than $11.7 million in net assets under management. The year-to-date daily total return of the fund is 13.8%. The net expense ratio is 0.56% and the 52-week price range of the fund lies between $11 and $16.
A premier holding of the fund, in which it has invested close to 2.24% of total assets under management, is the London-based mining company named Rio Tinto Group (NYSE: RIO) which engages in the exploration, mining, and processing of mineral sources worldwide. Rio Tinto Group (NYSE: RIO) markets aluminum, copper, diamonds, and gold, among other products. Like GlaxoSmithKline plc (NYSE: GSK), Vale S.A. (NYSE: VALE) and Exxon Mobil Corporation (NYSE: XOM), RIO is one of the best dividend stocks to buy.
7. iShares International Select Dividend ETF (BATS: IDV)
Yield: 3.93%
iShares International Select Dividend ETF (BATS: IDV) is an exchange traded fund that tracks the investment results of the Dow Jones EPAC Select Dividend Index which comprises stocks of companies that pay high dividends and are working in developed markets outside the United States. It is a fund that invests at least 80% of total assets in securities of the underlying index.
iShares International Select Dividend ETF (BATS: IDV) has more than $4.3 billion in net assets under management with a year-to-date daily total return of 15.2%. The net expense ratio is 0.49%, with the 52-week price range of $23-$34.
One of the top holdings of the fund is GlaxoSmithKline plc (LSE: GSK.L), the United Kingdom-based pharmaceutical firm. GlaxoSmithKline plc (LSE: GSK.L) develops and markets vaccines, over-the-counter medicines, and health-related products that treat respiratory diseases, HIV, immuno-inflammation, and other problems. GlaxoSmithKline plc (NYSE: GSK) is also trading in the US.
6. WisdomTree Emerging Markets High Dividend Fund (NYSE: DEM)
Yield: 4.13%
WisdomTree Emerging Markets High Dividend Fund (NYSE: DEM) is an exchange-traded fund tracking the investment results of the WisdomTree Emerging Markets High Dividend Index. It is a fund that invests at least 95% of total assets in the underlying stocks of the index. The index is a fundamentally weighted one that comprises high dividend paying firms on the WisdomTree Emerging Markets Dividend Index.
WisdomTree Emerging Markets High Dividend Fund (NYSE: DEM) has close to $2 billion in net assets under management with a year-to-date total daily return of 12.8%. The net expense ratio of the fund is 0.63% with a 52-week price range of $34-$47.
A top holding of the fund is Vale S.A. (NYSE: VALE), the Brazil-based mining company. The fund has invested 7.32% of assets under management into the firm. Vale S.A. (NYSE: VALE) is mainly engaged in the iron and steel-making business. Like GlaxoSmithKline plc (NYSE: GSK), Rio Tinto Group (NYSE: RIO) and Exxon Mobil Corporation (NYSE: XOM), VALE is one of the best dividend stocks to buy.
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Disclosure: None. 10 Best Dividend ETFs to Buy According to Reddit is originally published on Insider Monkey.
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