Best Dividend ETFs For August
In the last month the markets have seemingly nowhere to go but up, with the major indices adding significant amounts. Positivity on a COVID-19 vaccine, movement with U.S. and China trade relations, and a bounce back in overall economics have been the main reasons why, in addition to the massive monetary and fiscal stimulus provided around the country and also globally. Whether or not the trend will continue will be interesting to see, and for those who want to turn down the volatility in their portfolio, we are going to be looking at some U.S. dividend ETFs below and how investors have been selling the majority of them. Our deep learning algorithms at Q.ai have gone through the data to give you some ideas as you check on your investments.
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There are three funds to note that have been identified as Neutral by our AI systems below.
ProShares S&P 500 Aristocrats ETF (NOBL)
The ProShares S&P 500 Aristocrats ETF NOBL has been identified as the first Neutral ETF, and fund flows seem to be in agreement. The holding has seen outflows in the last 30 and 90 days of $11.6 million and $78.9 million, respectively, but the fund has seen an inflow of about $41 thousand in the last week. There is an elevated net expense ratio of about 0.35% which might explain the investor flows. The ETF is up about 10.65% in the last year so far.
Vanguard Dividend Appreciation ETF (VIG)
Next on the Neutral list is the Vanguard Dividend Appreciation ETF VIG . This fund has an extremely attractive net expense ratio of 0.08%, making it a cheap way to gain exposure to the underlying. Investors agree, as the assets under management have grown to an impressive $41.6 billion. Investor flows have also been positive lately, as in the last 30 days the fund has attracted $186.9 million, and in the last 90 days the fund has brought in $286.1 million. The fund has gained 14.29% in the last year.
WisdomTree U.S. LargeCap Dividend Fund (DLN)
Our final Neutral rated fund by our deep learning algorithms is WisdomTree U.S. LargeCap Dividend Fund DLN . The holding has done decently in the last year, up 9.56%, but is still trading below its all-time high made in early 2020. Fund flows have been negative recently for the holding, with the 1 week outflow of $24.8 million, a 30 day outflow of $19.8 million, and a 90 day outflow of $37.7 million. With assets under management of $2.13 billion those are not concerning numbers yet, but it is likely suffering from its higher than average net expense ratio of 0.28%.
Our AI systems have identified one Unattractive ETFs that saw funds being piled into by investors. More details below.
iShares Core Dividend Growth ETF (DGRO)
One fund that has seen some large inflows recently our AI systems do not think is a great idea by investors. The iShares Core Dividend Growth ETF DGRO has been rated Unattractive by our AI-systems. The flows, however, show the opposite rating by investors. In the last week, investors have bought $38.5 million of the ETF, in the last 30 days $229.4 million, and in the last 90 days a whopping $1.35 billion. The net expense ratio is in line with what it should be, at 0.08%, and the assets under management sits at $10.31 billion currently. Investors may want to think about shifting out of the holding at this time, according to our deep learning algorithms.
Our AI systems have identified several Unrated ETFs below.
iShares Select Dividend ETF (DVY), iShares Core High Dividend ETF (HDV)
There are two unrated ETFs from iShares today in the iShares Select Dividend ETF DVY and the iShares Core High Dividend ETF HDV . Investor flows have been negative for both, with 30-day outflows of $223.2 million and $97.47 million and 90-day outflows of $680.5 million and $348.6 million, respectively. The assets under management for the two funds sit at $12.3 billion and $5.4 billion with net expense ratios of 0.39% and 0.08%. Both have had dismal performance in the last year, losing 8.12% and 3.01% for investors.
WisdomTree U.S. MidCap Dividend Fund (DON), WisdomTree U.S. Quality Dividend Growth Fund (DGRW), WisdomTree U.S. SmallCap Dividend Fund (DES)
Next up we have three WisdomTree ETFs in the WisdomTree U.S. MidCap Dividend Fund DON , the WisdomTree U.S. Quality Dividend Growth Fund DGRW , and the WisdomTree U.S. SmallCap Dividend Fund. Investor flows were mixed in the last 30 days with -$79.5 million, +$85 million, and -$49.35 million for the three holdings. A similar story for the last 90 days with -$242 million, +$437 million, and -$64 million for the ETFs. AUM has been holding up for the holdings sitting at $2.47 billion, $3.19 billion, and $1.34 billion, respectively. Net expense ratios are likely a culprit for outflows here, as they sit at an elevated 0.38%, 0.28%, and 0.38%. Performance is also mixed, with two negative and one positive holding, at -8.43%, +20.48%, and -7.35%, respectively.
Schwab U.S. Dividend Equity ETF (SCHD), SPDR S&P Dividend ETF (SDY)
A couple of contrasting ETFs for this month in the Schwab U.S. Dividend Equity ETF and the SPDR S&P Dividend ETF. The former has seen great investor interest, with fund flows in the last 30 and 90 days of $300.8 million and $258.7 million. However, the latter is the opposite, with $165.8 million and $721 million of outflows as investors look for other areas to place their funds. Assets under management is close, with $10.75 billion and $14.66 billion, but where the real difference comes is in the net expense ratio. While the former with inflows sits at an attractive 0.07%, the latter with outflows has an expensive 0.35% attached to it. Possibly some reason for outflows there. Performance has also been separated for the two holdings, with a 14.16% gain in the last year for Schwab while the SPDR has only gained 2.05%.
Vanguard High Dividend Yield ETF (VYM)
One more U.S. dividend holding to note is the Vanguard High Dividend Yield ETF VYM . This holding has seen outflows in the last 30 and 90 days of $2 million and $42.88 million, respectively. However, the holding has a massive $24.8 billion in assets under management, and the most attractive net expense ratio of the funds on our list at 0.06%. Returns have not been amazing but are sitting at 2.49% in the last year.
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