The iShares Core High Dividend ETF (NYSE:HDV) generally will invest at least 80% of its assets in the component securities of its underlying index and in investments that have economic characteristics that are substantially identical to the component securities of its underlying index. The underlying index is comprised of qualified income paying securities that are screened for superior company quality and financial health as determined by Morningstar, Inc.’s proprietary index methodology. The fund is non-diversified.
Fund Overview:
- Type: Dividend stock
- Assets under management: $13.11 billion
- Dividend yield: 3.31%
- Expenses: 0.08%
Performance Overview:
- YTD Daily Total Return: 1.67%
- 1-Year Daily Total Return: 7.70%
- 3-Year Daily Total Return: 6.09%
The iShares Core High Dividend ETF is an inexpensive, straightforward way to gain access to a bundle of high-yielding dividend stocks. HDV currently holds 75 stocks that have been able to sustain above-average payouts and have also passed several financial-health screens.
This iShares ETF gives investors a somewhat different look than the low-volatility ETFs above. Healthcare (22.87%) and energy (19.67%) are the top two sector weightings, while financials (10.91%) also enjoy double-digit exposure. That said, consumer staples (17.24%) and utilities (11.29%) do carry some heft.
Otherwise, this is just a big batch of dividend-paying blue chips, with the likes of Exxon Mobil, Johnson & Johnson and Verizon within the top-holdings list.
Top 10 Holdings (54.76% of Total Assets)
| Name | Symbol | % Assets |
|---|---|---|
| Exxon Mobil Corp | XOM | 8.04% |
| Johnson & Johnson | JNJ | 7.31% |
| Verizon Communications Inc | VZ | 6.28% |
| Chevron Corp | CVX | 5.83% |
| Procter & Gamble Co | PG | 5.68% |
| Philip Morris International Inc | PM | 4.99% |
| Cisco Systems Inc | CSCO | 4.28% |
| Merck & Co Inc | MRK | 4.25% |
| Coca-Cola Co | KO | 4.15% |
| Broadcom Inc | AVGO | 3.95% |
In a bear market, HDV is a great ETF to own due to dividend payment and low expense.