QDF VS WDIV
4 min read
By Ron Koren, ETF Insider

QDF VS WDIV

Exchange-Traded Funds (ETFs) have transformed the investment landscape, providing investors with diversified exposure to various sectors and asset classes. In this article, we will conduct an in-depth analysis of two prominent ETFs: QDF (FlexShares Quality Dividend Index Fund) and WDIV (SPDR S&P Global Dividend ETF). Our exploration will encompass key aspects including ETF tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking, and exposure.

QDF Vs WDIV: Overview

QDF and WDIV are two ETFs that target the dividend investing space. However, they adopt distinct approaches to achieving this goal. QDF focuses on tracking an index of US dividend-paying stocks with strong quality metrics, while WDIV seeks to provide exposure to global dividend-paying companies. This difference in scope translates to differing geographic and sectoral exposures, which we'll delve into further.

QDF Vs WDIV: Sectors and Top Holdings

The QDF ETF concentrates its investments in sectors such as Consumer Discretionary, Industrials, and Information Technology. Its top holdings comprise well-established companies known for their dividend consistency, like Microsoft, Procter & Gamble, and Johnson & Johnson. On the other hand, WDIV allocates its resources across sectors and regions more globally, including Financials, Consumer Staples, and Utilities. Understanding the sectoral distribution and top holdings helps investors align their preferences with the ETF that matches their investment objectives.

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QDF Vs WDIV: Capitalization and Strategy

QDF boasts a substantial Asset Under Management (AUM), indicating its popularity among investors seeking quality dividend exposure within the US market. Its investment strategy emphasizes companies with strong fundamental characteristics and the ability to sustain dividend payments. Conversely, WDIV's strategy aims to capture dividends from various regions, making it a compelling option for investors seeking global dividend income. The variance in capitalization and strategy leads to different risk and return dynamics, necessitating careful consideration.

QDF Vs WDIV: Tracking and Exposure

The tracking methodologies of QDF and WDIV differ in terms of geographic focus. QDF tracks an index of US dividend-paying companies with specific quality criteria, while WDIV offers exposure to global dividend opportunities across both developed and emerging markets. As such, QDF's performance is more closely tied to the US market, while WDIV offers a broader geographic diversification. Understanding these tracking nuances assists investors in selecting an ETF that aligns with their geographic preferences and risk appetite.

Conclusion

QDF and WDIV present distinct investment avenues for those interested in dividend-focused ETFs. If you're eager to gain deeper insights into their holdings, correlations, overlaps, and other crucial aspects, look no further than ETF Insider. With its user-friendly application, ETF Insider provides a wealth of information on these and other financial instruments, empowering investors to make informed decisions.

Disclaimer: This article does not provide investment advisory services.

Sources:

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FAQ

  • Why is QDF better than WDIV?

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

  • Does WDIV beat QDF?

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

  • Should I invest in QDF or WDIV?

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

  • Are QDF and WDIV good investments?

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

  • What is the correlation between QDF and WDIV?

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