What index does DVY track?
4 min read
By Beqa Bumbeishvili, ETF Insider

What index does DVY track?

When it comes to investing in ETFs (Exchange-Traded Funds), it's important to understand the underlying index that the ETF is designed to track. In this article, we will explore the DVY ETF and answer some frequently asked questions about it.

Understanding the DVY ETF

The DVY ETF, also known as the iShares Select Dividend ETF, is an investment fund that aims to track the performance of the Dow Jones U.S. Select Dividend Index. This index consists of 100 high dividend-yielding U.S. stocks, providing investors with exposure to companies that have a history of paying consistent dividends.

The DVY ETF is popular among investors seeking income generation and dividend-focused strategies. By investing in the DVY ETF, investors can gain exposure to a diversified portfolio of dividend-paying stocks without having to buy each individual stock separately.

To learn more about the DVY ETF and its components, you can visit the official iShares website: Link to iShares Select Dividend ETF.

What are the expense ratios of the DVY ETF?

The expense ratio of the DVY ETF is 0.39%. This means that for every $1,000 invested in the fund, an investor pays $3.90 in annual fees. It's important to consider expense ratios when investing in ETFs, as they can impact overall returns.

To find more detailed information about the expense ratios and other fees associated with the DVY ETF, you can visit the official iShares website mentioned above.

DVY overlap What index does DVY track?DVY overlap What index does DVY track?

How often is the DVY ETF rebalanced?

The DVY ETF is rebalanced on a quarterly basis. Rebalancing involves adjusting the portfolio holdings to maintain the desired exposure to the underlying index. This ensures that the ETF continues to track the performance of the Dow Jones U.S. Select Dividend Index accurately.

For more information on the rebalancing process and schedule of the DVY ETF, you can refer to the iShares website.

Benefits of Investing in the DVY ETF

Dividend Income: The DVY ETF focuses on companies with a history of consistent dividend payments, making it an attractive option for income-oriented investors. By investing in the DVY ETF, investors can potentially benefit from the dividend income generated by the underlying stocks.
Diversification: The DVY ETF provides investors with exposure to a diversified portfolio of dividend-paying stocks. This diversification can help reduce risk by spreading investments across different companies and sectors.

For a more comprehensive understanding of the benefits and advantages of investing in the DVY ETF, you can explore the official iShares website.

The DVY ETF tracks the Dow Jones U.S. Select Dividend Index, offering investors exposure to 100 high dividend-yielding U.S. stocks. It provides a convenient way to gain diversification and potential dividend income. However, it's essential to conduct thorough research and consider your investment goals before making any investment decisions.

Disclaimer: This article is for informational purposes only and does not provide any investment advisory services. Always consult with a qualified financial advisor before making investment decisions.

Source 1: DVY issuer website Source 2: Reuters article about DVY

DVY 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 DVY iShares Select Dividend ETF, access our dedicated page now.

Get started

FAQ

  • What is DVY ETF?

    DVY is the ticker symbol for the iShares Select Dividend ETF. It is an exchange-traded fund that focuses on providing investors with exposure to dividend-paying stocks.

  • What index does DVY track?

    DVY aims to track the performance of the Dow Jones U.S. Select Dividend Index. This index comprises stocks of U.S. companies that have a consistent history of paying dividends.

  • Does DVY pay dividends?

    Yes, DVY pays dividends. As an ETF focused on dividend-paying stocks, it collects dividend payments from the underlying stocks held in its portfolio and distributes a portion of those payments to investors as dividends.

  • Are there any alternatives to DVY for investing in dividend-paying stocks?

    Yes, there are alternative ETFs and investment options available for investing in dividend-paying stocks. Some examples include other dividend-focused ETFs, mutual funds that emphasize dividend strategies, or building a portfolio of individual dividend-paying stocks. It is recommended to compare the features, costs, dividend yield, and performance of different investment options to align with your investment goals.

  • Can I use DVY to gain exposure to international dividend-paying companies?

    DVY primarily focuses on U.S. dividend-paying companies. If your objective is to gain exposure to international dividend-paying companies, you may consider alternative ETFs or investment options specifically targeting international markets or global dividend-paying stocks.