PFM VS WDIV
3 min read
By Beqa Bumbeishvili, ETF Insider

PFM VS WDIV

Exchange-Traded Funds (ETFs) have brought a new dimension to investing, allowing individuals to access a diversified range of sectors and asset classes with ease. In this article, we will conduct an in-depth comparison of two popular ETFs: PFM (Invesco Dividend Achievers ETF) and WDIV (SPDR S&P Global Dividend ETF). We'll explore various crucial aspects such as ETF tickers, full names, issuers, sectors, top holdings, capitalization, investment strategy, tracking methods, and exposure.

PFM Vs WDIV: Overview

PFM and WDIV are two ETFs that offer distinct approaches to dividend investing. While PFM focuses on companies with a history of increasing dividends, WDIV seeks to track the performance of high-yielding global stocks. Let's delve into these differences and uncover how they impact potential returns and risk profiles.

PFM Vs WDIV: Sectors and Top Holdings

The PFM ETF is primarily concentrated in sectors such as Information Technology, Health Care, and Consumer Discretionary. Its top holdings include companies like Microsoft, Johnson & Johnson, and Visa. In contrast, WDIV has a more international approach, with holdings in sectors like Financials, Consumer Staples, and Energy. Investors can use this information to align their investment goals with the ETF that best suits their preferences.

PFM  overlap PFM VS WDIVPFM overlap PFM VS WDIV

PFM Vs WDIV: Capitalization and Investment Strategy

PFM has a substantial Asset Under Management (AUM), reflecting its popularity among investors seeking dividend growth. Its investment strategy centers around companies with consistent dividend increases. On the other hand, WDIV's investment strategy revolves around identifying high-dividend-yield stocks from across the globe. The difference in capitalization and investment approach can lead to varying performance outcomes for these two ETFs.

PFM Vs WDIV: Tracking Methods and Exposure

PFM tracks an index composed of US companies with a history of dividend growth. This tracking approach aims to capture the potential for future dividend increases. Meanwhile, WDIV aims to replicate the performance of high-dividend-yield companies worldwide, giving investors exposure to a globally diversified dividend portfolio. Understanding the tracking methods and geographic exposure helps investors choose an ETF aligned with their investment preferences.

Conclusion

In the world of ETFs, PFM and WDIV offer distinctive strategies for dividend-focused investors. Whether you're interested in dividend growth from US companies or seeking high-yield stocks from around the globe, these ETFs cater to different investment philosophies. If you're keen on exploring the intricacies of holdings, correlations, overlaps, and other insights, consider utilizing ETF Insider—an intuitive app that provides comprehensive information on various financial instruments.

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

Sources:

Get started

FAQ

  • Why is PFM better than WDIV?

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

  • Does WDIV beat PFM?

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

  • Should I invest in PFM or WDIV?

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

  • Are PFM and WDIV good investments?

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

  • What is the correlation between PFM and WDIV?

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