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

PFM VS IDV

Exchange-Traded Funds (ETFs) have become an integral part of modern investment strategies, offering a diversified and accessible way to gain exposure to various sectors and asset classes. In this article, we will delve into an in-depth comparison between two notable ETFs: PFM (Invesco Dividend Achievers ETF) and IDV (iShares International Select Dividend ETF). Through a thorough analysis, we'll explore key aspects such as ETF tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking methods, and exposure.

PFM Vs IDV: Overview

The PFM and IDV ETFs differ in their geographical focus and dividend strategies. PFM targets U.S. companies with a history of consistent dividend growth, while IDV provides exposure to international dividend-paying stocks. Understanding these distinctions is essential for investors looking to align their portfolios with either a domestic or international dividend income strategy.

PFM Vs IDV: Sectors and Top Holdings

PFM primarily invests in dividend achievers across various sectors within the U.S. market. Its top holdings include established companies such as Microsoft, Johnson & Johnson, and Visa. On the other hand, IDV offers exposure to dividend-paying stocks from international markets, with top holdings including Nestle, Royal Dutch Shell, and Novartis. Evaluating the sectors and top holdings can assist investors in choosing an ETF that matches their geographic preferences and sector exposure.

PFM  overlap PFM VS IDVPFM overlap PFM VS IDV

PFM Vs IDV: Capitalization and Strategy

With a significant asset under management, PFM reflects its popularity among investors seeking reliable dividend income. PFM's strategy revolves around companies with a history of increasing dividends, which can provide stability and potential for income growth. IDV, on the other hand, capitalizes on international dividend-paying stocks, offering diversification beyond U.S. borders. Investors need to assess their risk tolerance and income goals when considering the differing capitalization and strategies of these ETFs.

PFM Vs IDV: Tracking and Exposure

PFM aims to track the performance of the NASDAQ US Broad Dividend Achievers Index, which includes companies with consistent dividend growth. This tracking method provides exposure to companies that have demonstrated a commitment to returning value to shareholders through dividends. IDV tracks the performance of the Dow Jones EPAC Select Dividend Index, offering exposure to international dividend stocks. Understanding the tracking mechanisms and exposure of these ETFs helps investors choose the right fit for their portfolio.

Conclusion

The PFM and IDV ETFs cater to distinct investment preferences, whether focusing on domestic dividend achievers or international dividend-paying stocks. As investors seek to gain a deeper understanding of holdings, correlations, overlaps, and other critical insights, the ETF Insider emerges as an invaluable tool. With its user-friendly app, ETF Insider empowers investors with comprehensive information on these and various other financial instruments.

Disclaimer: This article is intended for informational purposes only and does not provide investment advisory services.

Sources:

Invesco Dividend Achievers ETF (PFM) Fact Sheet. Retrieved from [Insert Source Link]
iShares International Select Dividend ETF (IDV) Overview. Retrieved from [Insert Source Link]

IDV quote and analysis

Discover the top holdings, correlations, and overlaps of ETFs using our visualization tool.
Our app allows you to build and track your portfolio.
To learn more about the IDV iShares International Select Dividend ETF, access our dedicated page now.

Get started

FAQ

  • Why is PFM better than IDV?

    PFM may be considered better than IDV for some investors due to its specific focus, offering diversification.

  • Does IDV beat PFM?

    IDV's performance relative to PFM will vary over time, depending on market conditions.

  • Should I invest in PFM or IDV?

    The choice between PFM and IDV should align with your investment goals, risk tolerance, and desired exposure.

  • Are PFM and IDV good investments?

    Both PFM and IDV can be suitable investments depending on individual investment strategies, goals, and risk profiles.

  • What is the correlation between PFM and IDV?

    The correlation between PFM and IDV can vary over time, reflecting differences in performance.