IDV VS PFM
4 min read
By Ron Koren, ETF Insider

IDV VS PFM

Exchange-Traded Funds (ETFs) have transformed the investment landscape, offering investors diversified exposure across various sectors and asset classes. In this article, we will conduct a comprehensive comparison between two notable ETFs: iShares International Select Dividend ETF (IDV) and Invesco Dividend Achievers ETF (PFM). We will delve into their ETF tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking methods, and exposure.

IDV VS PFM: Overview

IDV and PFM are two ETFs that cater to income-seeking investors, but they differ in their approach. IDV focuses on international dividend-paying stocks, providing exposure to companies outside the United States that have a history of consistent dividends. On the other hand, PFM emphasizes domestic dividend achievers, encompassing U.S. companies with a track record of dividend growth. These distinct focuses lead to variations in risk and return potential, which we will explore in greater detail.

IDV VS PFM: Sectors and Top Holdings

Understanding the sectors and top holdings of IDV and PFM is crucial for investors seeking income and diversification. IDV invests in sectors such as financials, utilities, and consumer staples, with top holdings including British American Tobacco, National Grid PLC, and Novartis AG. PFM, on the other hand, focuses on sectors like information technology, health care, and industrials, with top holdings including Microsoft, Johnson & Johnson, and Procter & Gamble. Analyzing these sectors and top holdings can help investors align their portfolios with their income goals and risk preferences.

IDV overlap IDV VS PFMIDV overlap IDV VS PFM

IDV VS PFM: Capitalization and Strategy

The capitalization and investment strategies of IDV and PFM play a pivotal role in shaping their performance. IDV boasts a substantial asset under management (AUM), reflecting its popularity among investors seeking international dividend exposure. PFM, as a domestic-focused ETF, follows a strategy aimed at capitalizing on the performance of U.S. dividend achievers. The differences in capitalization and strategy between these two ETFs result in varying income potential and risk profiles, necessitating careful consideration by investors.

IDV VS PFM: Tracking Methods and Exposure

IDV and PFM employ distinct tracking methods to deliver exposure to dividend-paying stocks. IDV seeks to closely mirror the performance of the Dow Jones EPAC Select Dividend Index, which consists of dividend-paying companies in developed markets outside the United States. PFM, on the other hand, tracks the Nasdaq US Broad Dividend Achievers Index, which includes U.S. companies with a consistent history of dividend growth. Understanding these tracking methods and the resulting exposure helps investors make informed decisions based on their investment objectives and risk tolerance.

Conclusion

IDV and PFM are ETFs with unique characteristics, each tailored to meet the specific needs of income-focused investors. To gain deeper insights into the holdings, correlations, overlaps, and other valuable information regarding these ETFs, consider utilizing ETF Insider. This user-friendly app provides comprehensive details about these financial instruments and more.

Disclaimer: This article does not offer any investment advisory services.

IDV ETF issuer
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