Top Dividend ETFs For September
As markets have had the worst September in 18 years, investors are becoming increasingly nervous. The sentiment has changed drastically in the last 4 weeks, and there are considerable concerns. Nobody knows if another stimulus package will pass before the election in November, jobless claims disappointed, and there are signs that a double-dip recession amidst further global lockdowns could be on the horizon. While high flying tech names have led the broader decline, the Dow and S&P are down as well. One of the ways that investors can cope with the current market climate right now is by investing in ETFs that focus on dividend payers. This is a good strategy, because it gives investors investable indexes with broad exposure, while also yielding consistent income streams. While many are concerned about tough markets to navigate, Q.ai’s deep learning algorithms have identified several Top Dividend ETFs based on 90-day, 30-day, and 1-week fund flows. While our rating system usually includes Top Buys, Attractive, Neutral, Unattractive, and Top Shorts, ratings for the month, this month, we have only one ETF rated Attractive, and three rated Unattractive
Sign up for the free Forbes AI Investor newsletter here to join an exclusive AI investing community and get premium investing ideas before markets open.
ProShares S&P 500 Aristocrats ETF (NOBL)
Our only Attractive ETF for the month is the ProShares S&P 500 Aristocrats ETF NOBL . This is a very uniquely structured ETF because its only holdings are companies within the S&P 500 that have raised their dividends for at least 25 years in a row. This is a highly rated and highly respected ETF, with none of its top holdings holding any more than 2% of weight in the ETF. Its major holdings include stocks such as Target TGT , Sysco SYY , Proctor and Gamble, and Lowe’s LOW . It currently has $6,010,586,710.14 AUM. It has had strong fund flows, with a $19,793,635.00 90-day fund flow, $40,501,380.00 30-day fund flow, and $43,896,940.00 1-week fund flow. Its 0.35% net expense ratio is on the higher end compared to other Top Dividend ETFs.
iShares Core Dividend Growth ETF (DGRO)
The first of the Unattractive rated Top Dividend ETFs, is the iShares Core Dividend Growth ETF DGRO . This ETF aims to track an index composed of US stocks that have a proven history of growing dividends consistently. Its top holdings include companies such as Verizon VZ , Microsoft MSFT , Johnson and Johnson JNJ , Apple AAPL , and JP Morgan. The ETF currently has $11,358,088,825.80 AUM, and has had strong fund flows as of late. It has a 90-day fund flow of $246,977,550.00, 30-day fund flow of $200,587,585.00, and 1-week fund flow of $59,887,880.00. Its net expense ratio of .08% is also very reasonable.
WisdomTree U.S. Large Cap Dividend Fund (DLN)
Next on the list of Unattractive rated Top Dividend ETFs, is the WisdomTree US Large Cap Dividend Fund DLN . This ETF tracks an index made up exclusively of US Large Cap companies that pay strong dividends. It currently has $2,203,536,140.30 AUM. It has had mixed fund flows over the last 3 months, with a negative fund flow of $-19,241,245.90 over the last 90-days, a positive fund flow of $33,736.15 over the last 30-days, and 0 fund flow over the last week. Its net expense ratio of .28% is pricier compared to other similar ETFs.
Vanguard Dividend Appreciation ETF (VIG)
The final ETF of the Unattractive ETFs, is the Vanguard Dividend Appreciation ETF VIG . This ETF focuses on NASDAQ NDAQ companies that have a record of growing their dividends year over year. The company has $46,162,087,457.00, and has shown strong fund flows over the last 3 months. Its 90-day fund flow is $723,783,880.55, its 30-day fund flow is $597,418,366.51, and its 1-week fund flow is $226,129,311.63. Its net expense ratio of .08% is very reasonable.
Other ETFs (Unrated)
iShares Core High Dividend ETF (HDV), iShares Select Dividend ETF (DVY)
Two more dividends on our list that were not assigned a rating are the iShares Core High Dividend ETF HDV and iShares Select Dividend ETF DVY . Both the iShares Core High Dividend ETF and iShares Select Dividend ETF focus on tracking an index of relatively high dividend paying U.S. stocks. While the iShares Core High Dividend ETF has $5,222,285,885.20 AUM, the iShares Select Dividend ETF has $11,963,699,852.70. Both ETFs have seen negative fund flows over the last 90-days, 30-days, and 1-week. The iShares Core High Dividend ETF saw fund flows of $-249,512,750.00 over the last 90-days, $-12,449,170.00 over the last 30-days, and $-7,979,490.00 over the last week, and the iShares Select Dividend ETF saw fund flows of $-683,010,490.00 over the last 90-days, $-177,048,410.00 over the last 30-days, and $-28,866,010.00 over the last week. The iShares Core High Dividend has a much better net expense ratio than the iShares Select Dividend ETF, with a ratio of 0.08% compared to 0.39%.
SPDR S&P Dividend ETF (SDY), Vanguard High Dividend Yield ETF (VYM)
The next two dividends on our list that were not assigned a rating are the SPDR S&P Dividend ETF and Vanguard High Dividend Yield ETF VYM . While the SPDR S&P Dividend ETF focuses on the highest dividend yielding S&P stocks that have consistently increased dividends for at least 20 consecutive years, the Vanguard High Dividend Yield ETF aims to hold high dividend paying US companies, weighted by market cap. They do not, however, hold any REITS. The SPDR S&P Dividend ETF has $14,505,909,722.25 AUM, compared to $25,669,946,496.13 AUM for the Vanguard High Dividend Yield ETF. The SPDR S&P Dividend ETF has seen consistently negative fund flows, with a fund flow of $-543,759,097.30 over the last 90-days, $-133,637,007.85 over the last 30-days, and $-37,288,128.00 over the last week. In comparison, the Vanguard High Dividend Yield ETF has seen a negative 90-day fund flow of $-211,442,240.53, and positive 30-day day and 1-week fund flows of $268,079,611.28 and $125,400,380.63 respectively. The SPDR S&P Dividend ETF has a considerably less attractive net expense ratio of 0.35% compared to the net expense ratio of 0.06% for the Vanguard High Dividend Yield ETF.
Liked what you read? Sign up for our free Forbes AI Investor Newsletter here to get AI driven investing ideas weekly. For a limited time, subscribers can join an exclusive slack group to get these ideas before markets open.