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With rates at all time lows and looking like they will stay this way, investors have been searching for yield in all the usual spots: high dividend paying equity ETFs.
US Equity Dividend Funds have seen in excess of $3b in inflows with YTD returns ranging from 12% to 21%. Compare that to the S&P 500s ~11.97% YTD total return as of Friday April 16.
Select High Dividend ETFs leaving SPY in the dust
Selected Top ETF Inflows & Outflows by % (AUM>$50m)
Flow Percent is calculated by taking "Last 1 Week Cumulative Flows" and
dividing by AUM of the ETF at the start of the week.
Top 6 Inflows
Top 6 Outflows
Total returns are calculated for the week and include all distributions such as dividends.
Use the Logicly Screener to Find Good Quality Dividend ETFs:
First Step is Filtering:
- We screen for funds with assets (AUM) of at least $100 million, using the left-side filters. Though AUM is not necessarily indicative of the ETFs quality, it may sometimes be a proxy for liquidity. We also add a filter to ensure we are looking at US-Traded ETFs so as to remove all global ETF listings.
- We can then pick funds with high basket diversification, ranked between 7 and 10, meaning they are in the top 30% of diversification, in the Logicly screener.
- This is an important filter to remove funds that may have too few names in their holdings or may be dominated by a few chunky positions. Proper ETF diversification under the hood is an important aspect for picking quality funds.
Setting up a Custom View and Choosing Your Columns:
- Add in asset class and top country exposure columns can help you focus in on differentiating between fixed income and US equity high yielding fund.
- We also add in YTD returns and flows.
- Most importantly, we add the 5-year lookback columns that screen for short-term gain, long-term gain or special dividend distributions. These are non-typical events in the life of an ETF and may cause adverse tax consequences to the investor.
To Wrap Up:
- We can then download the 500+ ETFs to Excel for further analysis.
- We note that many of these names are ETFs that hold preferred stocks. Preferred stocks are exchange listed securities that have both the characteristics of stocks and bonds. Most dividends paid from preferred stocks are treated as qualified dividends.
Top Yielding Names, Screened for High Diversification, Primarily US Equity Focus, TTM Yield > 3%, AUM>$100M
|Ticker||Name||Asset Class||Top Country Exposure||Yield TTM (Regular)|
|JEPI US||JPMorgan Equity Premium Income ETF||Equity||US||7.26%|
|SDIV US||Global X SuperDividend ETF||Equity||US||6.70%|
|PSK US||SPDR Wells Fargo Preferred Stock ETF||Equity||US||5.22%|
|PGX US||Invesco Preferred ETF||Equity||US||4.98%|
|PGF US||Invesco Financial Preferred ETF||Equity||US||4.91%|
|PFF US||iShares Trust iShares Preferred and Income Securities ETF||Equity||US||4.71%|
|SPYD US||SPDR Portfolio S&P 500 High Dividend ETF||Equity||US||4.69%|
|SCHV US||Schwab U.S. Large-Cap Value ETF||Equity||US||4.33%|
|VRP US||Invesco Variable Rate Preferred ETF||Equity||US||4.29%|
|CDL US||VictoryShares US Large Cap High Div Volatility Wtd ETF||Equity||US||4.14%|
|FGD US||First Trust Dow Jones Global Select Dividend Index Fund||Equity||US||4.01%|
|GCOW US||Pacer Global Cash Cows Dividend ETF||Equity||US||3.92%|
|CSB US||VictoryShares US Small Cap High Div Volatility Wtd ETF||Equity||US||3.50%|
|DVY US||BTC iShares Select Dividend ETF||Equity||US||3.50%|
|KBE US||SPDR S&P Bank ETF||Equity||US||3.47%|
|VYM US||Vanguard High Dividend Yield Indx ETF||Equity||US||3.30%|
|SDY US||SPDR Dividend ETF||Equity||US||3.28%|
|VOE US||Vanguard Mid-Cap Value ETF||Equity||US||3.05%|
Top Returns of High Dividend Paying ETFs, Screened for High Diversification, Primarily US Equity Focus, TTM Yield > 2%, YTD Return> 20%
|Ticker||Name||Asset Class||Top Country Exposure||Yield TTM (Regular)||AUM (USD)||YTD Return|
|KBE US||SPDR S&P Bank ETF||Equity||US||3.47%||$4,011,844,000.00||27.10%|
|ONEY US||SPDR Russell 1000 Yield Focus ETF||Equity||US||2.47%||$616,898,000.00||23.70%|
|VTWV US||Vanguard Russell 2000 Value Index ETF||Equity||US||2.01%||$959,512,500.00||23.50%|
|DVY US||BTC iShares Select Dividend ETF||Equity||US||3.50%||$18,300,190,000.00||23.50%|
|IJJ US||iShares S&P Mid-Cap 400 Value ETF||Equity||US||2.00%||$8,568,699,000.00||23.10%|
|SPYD US||SPDR Portfolio S&P 500 High Dividend ETF||Equity||US||4.69%||$3,218,654,000.00||22.00%|
|CSB US||VictoryShares US Small Cap High Div Volatility Wtd ETF||Equity||US||3.50%||$207,218,600.00||21.70%|
|DES US||WisdomTree U.S. SmallCap Dividend Fund||Equity||US||2.40%||$1,884,303,000.00||20.90%|
|DON US||WisdomTree U.S. MidCap Dividend Fund||Equity||US||2.35%||$3,012,218,000.00||20.60%|
|CDL US||VictoryShares US Large Cap High Div Volatility Wtd ETF||Equity||US||4.14%||$216,583,200.00||20.40%|