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

PFM VS SDIV

Exchange-Traded Funds (ETFs) have transformed the investment landscape by providing investors with diversified exposure to various sectors and asset classes. In this article, we will conduct an in-depth comparison between two prominent ETFs: PFM (Invesco Dividend Achievers ETF) and SDIV (Global X SuperDividend ETF). We'll delve into key aspects such as ETF tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking, and exposure.

PFM Vs SDIV: Overview

The PFM and SDIV ETFs present distinct investment strategies within the realm of dividends and income generation. While PFM focuses on companies with a consistent history of dividend growth, SDIV seeks to provide exposure to a global portfolio of high-dividend-yield securities. These differing strategies lead to varied risk profiles and potential returns, which we'll explore further.

PFM Vs SDIV: Sectors and Top Holdings

PFM primarily targets sectors with a strong track record of dividend payments, such as consumer discretionary, industrials, and information technology. Its top holdings include companies like Microsoft, Johnson & Johnson, and Procter & Gamble. SDIV, on the other hand, diversifies across sectors and industries, including real estate, utilities, and telecommunications. Understanding sector allocation and top holdings aids investors in aligning their investment goals with the appropriate ETF.

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PFM Vs SDIV: Capitalization and Strategy

PFM's substantial Asset Under Management (AUM) reflects its popularity among investors seeking a steady stream of income from dividend stocks. The strategy of focusing on dividend achievers can provide stability to portfolios. On the contrary, SDIV's strategy of investing in high-dividend-yield stocks can offer attractive income potential but may involve greater exposure to market fluctuations. Evaluating capitalization and strategy is crucial for assessing potential risk and reward.

PFM Vs SDIV: Tracking and Exposure

PFM aims to provide exposure to US companies that have demonstrated a commitment to dividend growth. Its tracking is achieved through replicating an index composed of such stocks. SDIV, as a global dividend ETF, seeks to track an index that includes companies from around the world with above-average dividend yields. Diversified geographic exposure comes with its own set of considerations, and understanding tracking methods is essential for making informed investment decisions.

Conclusion

In the dynamic landscape of ETFs, PFM and SDIV stand out as options for investors seeking income and dividend-focused strategies. Each ETF caters to a unique investment approach, offering potential benefits and risks. For those looking to gain a comprehensive understanding of holdings, correlations, overlaps, and insightful data, ETF Insider emerges as the ultimate tool. With its user-friendly application, ETF Insider empowers investors to explore and analyze various financial instruments.

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

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FAQ

  • Why is PFM better than SDIV?

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

  • Does SDIV beat PFM?

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

  • Should I invest in PFM or SDIV?

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

  • Are PFM and SDIV good investments?

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

  • What is the correlation between PFM and SDIV?

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