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3 Characteristics of ETFs Near 52-Week Highs

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Characteristics of ETFs Near 52-Week Highs: Dividends

Yield-sensitive assets (e.g., REITs, bonds, preferred shares, dividend stocks, utility stocks, etc.) often struggled in 2013. In particular, when the 10-year yield roughly doubled from 1.4% to 2.8% during last year’s infamous “taper tantrum,” markets viewed income producers as liabilities. Today, the 10-year’s tight trading range between 2.5% and 3.0% has reignited an appetite for cash flow. Utility stocks are leading the sector charts and dividend ETFs are returning to form. In fact, a variety of dividend funds are outperforming the SPDR S&P 500 Trust (SPY) on a rolling 1-month basis.

Dividend ETFs? Not Without Their Charm
1 Month %
PowerShares High Yield Dividend (PEY) 3.6%
iShares DJ Select Dividend (DVY) 2.8%
First Trust Value Line Dividend (FVD) 2.4%
WisdomTree Top Dividend 100 (DTN) 2.3%
WisdomTree Total Dividend (DTN) 2.1%
SPDR S&P 500 (SPY) 1.9%

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