Dividend factor ETFs
Since 1926, dividends have contributed nearly a third of total equity return while capital gains have contributed two-thirds. So dividend investing has become very popular. A dividend ETF is a so-called "smart beta" ETF that follows an index that intentionally selects stocks with high dividend yields, and/or weights the stocks it is holding, based on each stock's dividend yield (rather than each stock's market capitalization).
Does dividend investing work?
What is the goal?
Dividend ETFs are not necessarily about outperforming the market. In low interest rate environment, dividend ETFs have soared in popularity partly because investors are looking for any kind of yield. Many dividend ETFs combine dividend strategies with low volatility strategies, under the theory that investors looking for yield also want stable, conservative companies with less volatility.
What factors do you get with a dividend ETF?
It is difficult to use academic research as a tool to analyze dividend yield ETFs because most factor investment academic research does not specifically address dividends as a factor by itself. There is research on low volatility investing, and value investing, but not a lot on dividend investing. The general consensus seems to be that by selecting dividend stocks, you are indirectly selecting value stocks and low volatility stocks.
How well do dividend ETFs perform?
Here's a screen of U.S. equity dividend ETFs:
| Name | Symbol | Last price | Currency |
|---|---|---|---|
| INVESCO FTSE RAFI US 1000 ET | ARCX:PRF | 40.60 | USD |
| Flex Shrs Mrngt Dvlpd Mktex US Fctr Tilt | ARCX:TLTD | 68.55 | USD |
| Cohen & Steers Global Realty Majors ETF | ARCX:RDOG | 38.20 | USD |
| Columbia U.S. Equity Income ETF | ARCX:EQIN | 44.40 | USD |
| Vanguard International Dividend | XNAS:VIGI | 79.93 | USD |
| Virtus WMC Global Factor Opportunities ETF | BATS:VWID | 26.42 | USD |
| UBS AG ETRACS Alerian Midstream Energy High Dividend Index ETN | ARCX:AMND | 53.54 | USD |
| Amplify ETF Trust Amplify International Enhanced Dividend Income ETF | ARCX:IDVO | 29.96 | USD |
| WisdomTree Emerging Mkt SmllCap Dvd Fnd | ARCX:DGS | 49.85 | USD |
| INVESCO BULLETSHARES 2027 MU | XNAS:BSMR | 23.67 | USD |
| ALPS O'Shares U.S. Small-Cap Quality Dividend ETF | BATS:OUSM | 43.97 | USD |
| SPDR S&P Dividend ETF | ARCX:SDY | 132.68 | USD |
| INVESCO DOW JONES INDUSTRIAL | ARCX:DJD | 51.21 | USD |
| AAM S&P 500 Sector High Dividend | ARCX:SPDV | 32.70 | USD |
| WisdomTree International MidCap Div Fund | ARCX:DIM | 60.88 | USD |
| INVESCO S&P 500 HIGH DIVIDEN | ARCX:SPHD | 48.45 | USD |
| Touchstone ETF Trust Touchstone Dividend Select ETF | ARCX:DVND | 31.13 | USD |
| iShares Core Dividend Growth ETF | ARCX:DGRO | 61.41 | USD |
| FlexShares Intl Quality Div Index | ARCX:IQDF | 23.12 | USD |
| ALPS Sector Dividend Dogs ETF | ARCX:SDOG | 56.56 | USD |
| Legg Mason International Low Volatility High Dividend | BATS:LVHI | 29.91 | USD |
| WisdomTree US SmallCap Dividend Fund | ARCX:DES | 34.43 | USD |
| PROSHARES RUSSELL US DVD GRW | BATS:TMDV | 47.50 | USD |
| SPDR S&P Global Dividend | ARCX:WDIV | 62.45 | USD |
| Siren DIVCON Dividend Defender ETF | BATS:DFND | 42.27 | USD |
| Amplify YieldShares CWP Dividend & Option Income USD | ARCX:DIVO | 40.66 | USD |
| INVESCO DIVIDEND ACHIEVERS E | XNAS:PFM | 46.26 | USD |
| Sound Equity Income ETF | XNYS:DIVY | 25.78 | USD |
| INVESCO FTSE RAFI DEVELOPED | ARCX:PXF | 47.76 | USD |
| INVESCO KBW HIGH DIVIDEND YI | XNAS:KBWD | 14.79 | USD |
| Cambria Emerging Shareholder Yield | BATS:EYLD | 31.67 | USD |
| SPDR S&P Emerging Markets Dividend | ARCX:EDIV | 35.19 | USD |
| iShares Core High Dividend ETF | ARCX:HDV | 111.94 | USD |
| First Trust US Equity Dividend Select ETF | XNAS:KNGZ | 32.49 | USD |
| iShares Asia Pacific Dividend 30 Indx Fd | ARCX:DVYA | 35.50 | USD |
| WisdomTree Japan SmallCap Fund | ARCX:DFJ | 75.28 | USD |
| USCF ETF Trust USCF Dividend Income Fund | ARCX:UDI | 29.54 | USD |
| SCHWAB LONG-TERM US TREASURY | ARCX:SCHQ | 31.71 | USD |
| Wisdom Tree Trust Europe Small | ARCX:DFE | 56.60 | USD |
| Flxshs Intl Quality Div Dynamic Index Fu | ARCX:IQDY | 27.54 | USD |
| WisdomTree US LargeCap Dividend Fund | ARCX:DLN | 78.22 | USD |
| SPDR S&P International Dividend ETF | ARCX:DWX | 34.95 | USD |
| iShares International Select Dividnd ETF | BATS:IDV | 27.16 | USD |
| WisdomTree Global ex-US Dividend Gr ETF | ARCX:DNL | 36.37 | USD |
| ProShares S&P MidCap 400 Div Aristocrats | BATS:REGL | 81.20 | USD |
| WBI Power Factor High Dividend | ARCX:WBIY | 30.07 | USD |
| Psh Msci Emg Etf | BATS:EMDV | 43.52 | USD |
| First Trust DJ Global Select Dividend | ARCX:FGD | 22.12 | USD |
| FT Cboe Vest S&P 500 Dividend Aristocrats Target Income ETF | BATS:KNG | 50.50 | USD |
| PACER GLOBAL CASH COWS DIVID | BATS:GCOW | 33.68 | USD |
| Capital Group Core Equity ETF Capital Group Core Equity ETF | ARCX:CGUS | 35.27 | USD |
| Principal Spectrum Tax-Advantaged Dividend Active ETF | ARCX:PQDI | 19.03 | USD |
| iShares iBonds Dec 2026 Term Muni Bond | BATS:IBMO | 25.43 | USD |
| NATIONWIDE RISK-MANAGED INCO | ARCX:NUSI | 26.44 | USD |
| Harbor ETF Trust Harbor Dividend Growth Leaders ETF | XNYS:GDIV | 15.27 | USD |
| ISHARES IBONDS DEC 2029 TERM | ARCX:IBDU | 22.76 | USD |
| iShares iBonds Dec 2027 Term Treasury ETF | XNAS:IBTH | 22.12 | USD |
| WisdomTree US High Dividend Fund | ARCX:DHS | 93.69 | USD |
| Hoya Capital High Dividend Yield ETF | ARCX:RIET | 10.11 | USD |
| iShares International Dividend Growth | BATS:IGRO | 67.88 | USD |
| Vanguard Int'l High Dividend Yield ETF | XNAS:VYMI | 67.29 | USD |
| INVESCO INDIA EXCHANGE-TRADE | ARCX:PIN | 28.36 | USD |
| ETRACS 2X HI DIV L-VOL ETN-B | ARCX:HDLB | 13.36 | USD |
| Anfield Universal Fixed Income ETF | BATS:AFIF | 9.17 | USD |
| WisdomTree International Quality Dividen | BATS:IQDG | 34.58 | USD |
| INVESCO BULLETSHARES 2029 CO | XNAS:BSCT | 18.37 | USD |
| Global X Funds YieldCo & Renewable Energ | XNAS:RNRG | 8.80 | USD |
| Global X Superdividend Alternatives ETF | XNAS:ALTY | 11.71 | USD |
| O'Shares FTSE Europe Quality Div ETF | BATS:OEUR | 27.58 | USD |
| First Trust ETF Shs Total US Marekt Alph | XNAS:FTDS | 50.41 | USD |
| iShares Select Dividend | XNAS:DVY | 131.36 | USD |
| First Trust RBA Quality Income | XNAS:DDIV | 37.82 | USD |
| INVESCO BULLETSHARES 2029 MU | XNAS:BSMT | 23.04 | USD |
| First Trust Morningstar ETF | ARCX:FDL | 40.17 | USD |
| First Trust VL Dividend | ARCX:FVD | 43.70 | USD |
| iShares iBonds Dec 2026 Term Treasury ETF | XNAS:IBTG | 22.74 | USD |
| Fidelity® International High Dividend ETF | ARCX:FIDI | 19.31 | USD |
| VictoryShares US EQ Income Enhanced Vola | XNAS:CDC | 62.42 | USD |
| BNY Mellon Core Bond ETF | ARCX:BKAG | 41.43 | USD |
| AAM LOW DUR PREF & INC SEC | ARCX:PFLD | 20.73 | USD |
| Freedom Day Dividend ETF | ARCX:MBOX | 32.93 | USD |
| Opus Small Cap Value Plus | BATS:OSCV | 37.20 | USD |
| WISDOMTREE MTGE PLUS BOND | ARCX:MTGP | 43.49 | USD |
| Western Asset Short Duration Income ETF | XNAS:WINC | 24.02 | USD |
| Amplify Cash Flow Dividend Leaders ETF | XNAS:COWS | 29.39 | USD |
| First Trust Large Cap US Equity Select ETF | XNAS:SHRY | 39.94 | USD |
| T. Rowe Price Dividend Growth ETF | ARCX:TDVG | 39.90 | USD |
| PowerShares High Yield Equity Dividend Achievers Portfolio | XNAS:PEY | 21.38 | USD |
| SmartETFs Dividend Builder ETF | ARCX:DIVS | 28.59 | USD |
| WisdomTree International Equity Fund | ARCX:DWM | 52.59 | USD |
| First Trust Rising Dividend Achievers ET | XNAS:RDVY | 59.29 | USD |
| WisdomTree Dynamic Ccy Hdgd Intl Eq | BATS:DDWM | 34.04 | USD |
| Timothy Plan High Dividend Stock ETF | ARCX:TPHD | 36.27 | USD |
| Global X Emerging Markets Bond ETF | ARCX:EMBD | 22.88 | USD |
| PRINCIPAL SHAREHLD YIELD ETF | XNAS:PY | 49.78 | USD |
| INVESCO BULLETSHARES 2026 MU | XNAS:BSMQ | 23.65 | USD |
| iShares iBonds Dec 2024 Term Treasury ETF | XNAS:IBTE | 23.87 | USD |
| WisdomTree US Dividend Growth ETF | XNAS:DGRW | 81.68 | USD |
| ALPS O'Shares U.S. Quality Dividend ETF | BATS:OUSA | 53.51 | USD |
| WisdomTree Japan Hedged SmallCap Equity | XNAS:DXJS | 35.06 | USD |
| Siren DIVCON Leaders Dividend ETF | BATS:LEAD | 67.61 | USD |
| VictoryShares Dividend Accelerator | XNAS:VSDA | 51.14 | USD |
| Columbia International Equity Income ETF | ARCX:INEQ | 29.14 | USD |
| Listed Funds Trust Dividend Performers ETF | BATS:IPDP | 19.62 | USD |
| Fidelity Core Dividend | ARCX:FDVV | 49.85 | USD |
| ProShares MSCI EAFE Dividend Growers ETF | BATS:EFAD | 37.38 | USD |
| Global X MSCI SuperDividend EAFE | XNAS:EFAS | 14.02 | USD |
| Deep Value ETF | ARCX:DEEP | 34.99 | USD |
| Flexshr Def Qul | ARCX:QDEF | 70.59 | USD |
| WisdomTree US Total Dividend Fund | ARCX:DTD | 76.29 | USD |
| Flex Shrs Mrngtr EmengMktFctrTiltIdxFd | ARCX:TLTE | 51.48 | USD |
| Flxshs Intl Quality Div Defensive Index | ARCX:IQDE | 20.35 | USD |
| Wisdomtree Intern. Largecap Di | ARCX:DOL | 49.28 | USD |
| INVESCO S&P ULTRA DIVIDEND | ARCX:RDIV | 48.79 | USD |
| ProShares S&P 500 Dividend Aristocrats E | BATS:NOBL | 100.76 | USD |
| ProShares MSCI Europe Dividend Growers E | BATS:EUDV | 46.69 | USD |
| Xtrackers MSCI EAFE High Div Yield Equit | ARCX:HDEF | 24.04 | USD |
| AB Active ETFs, Inc. AB US High Dividend ETF | ARCX:HIDV | 72.47 | USD |
| Global X Super Dividend ETF | ARCX:DIV | 17.99 | USD |
| ETRACS 2xMonthly Pay Leveraged US Small Cap High Dividend ETN | ARCX:SMHB | 5.25 | USD |
| JPMorgan Income ETF | ARCX:JPIE | 45.75 | USD |
| Global X SuperDividend ETF | ARCX:SDIV | 20.56 | USD |
| Capital Group Dividend Value ETF Capital Group Dividend Value ETF | ARCX:CGDV | 35.60 | USD |
| First Trust Intl Multi-Asset Diversified Inc | XNAS:FID | 16.20 | USD |
| TrueShares Low Volatility Equity Income ETF | ARCX:DIVZ | 32.04 | USD |
| INVESCO BULLETSHARES 2025 MU | XNAS:BSMP | 24.49 | USD |
| WisdomTree Europe Qualty Div Growth Fund | ARCX:EUDG | 30.08 | USD |
| Litman Gregory Funds Trust IMGP Berkshire Dividend Growth ETF | ARCX:BDVG | 11.54 | USD |
| Cambria Shareholder Yield ETF | BATS:SYLD | 68.27 | USD |
| First Trust Nasdaq Technology Dividend I | XNAS:TDIV | 78.73 | USD |
| INVESCO KBW PREMIUM YIELD EQ | XNAS:KBWY | 18.25 | USD |
| MarketDesk Focused U.S. Dividend ETF | XNAS:FDIV | 27.30 | USD |
| INVESCO BULLETSHARES 2028 MU | XNAS:BSMS | 23.33 | USD |
| SPDR Portfolio S&P 500 High Dividend ETF | ARCX:SPYD | 43.23 | USD |
| ProShares Russell 2000 Div Growers ETF | BATS:SMDV | 68.86 | USD |
| CLEARBRIDG DIV STRGY ESG ETF | XNAS:YLDE | 51.17 | USD |
| Schwab US Dividend Equity ETF | ARCX:SCHD | 27.29 | USD |
| RiverFront Dynamic US Dividend Advantage | ARCX:RFDA | 56.40 | USD |
| Schwab International Dividend Equity ETF | ARCX:SCHY | 23.08 | USD |
| iShares U.S. Dividend and Buyback | BATS:DIVB | 47.42 | USD |
| WisdomTree Intl Hdgd Div Gr ETF | ARCX:IHDG | 43.48 | USD |
| PowerShares International Dividend Achievers Portfolio | XNAS:PID | 18.28 | USD |
| iShares iBonds Dec 2029 Term Treasury ETF | XNAS:IBTJ | 21.29 | USD |
| WisdomTree International SmallCap Fund | ARCX:DLS | 63.15 | USD |
| PowerShares S&P SmallCap High Dividend Low Volatility Portfolio | XNYS:XSHD | 14.65 | USD |
| INVESCO FTSE RAFI DEVELOPED | ARCX:PDN | 31.84 | USD |
| Schwab Fndmntl US Lrg Cmpny Indx | ARCX:FNDX | 23.76 | USD |
| Invesco S&P Intl Developed Quality ETF | XNYS:IDHQ | 28.52 | USD |
| iShares iBonds Dec 2025 Term Treasury ETF | XNAS:IBTF | 23.27 | USD |
| INVESCO BULLETSHARES 2024 MU | XNAS:BSMO | 24.88 | USD |
| Franklin LibertyQ International Equity Hedged | ARCX:DIVI | 29.81 | USD |
| Global X MSCI SuperDividend Emerging Markets ETF | ARCX:SDEM | 24.36 | USD |
| Pacer Metaurus US Large Cap Dividend Multiplier 400 ETF | ARCX:QDPL | 39.12 | USD |
| Wisdomtree Emrg | XNAS:DGRE | 25.41 | USD |
| Matthews International Funds Matthews Asia Dividend Active ETF | ARCX:ADVE | 32.17 | USD |
| First Trust SMID Cap Rising Dividend Achievers ETF | XNAS:SDVY | 35.83 | USD |
| ETF Series Solutions U.S. Global Sea to Sky Cargo ETF | ARCX:SEA | 14.81 | USD |
| Global X S&P 500 Quality Dividend | ARCX:QDIV | 34.88 | USD |
| iShares Emerging Markets Dvdnd Indx Fd | ARCX:DVYE | 25.86 | USD |
| Nuveen ESG Dividend ETF | BATS:NUDV | 27.59 | USD |
| Timothy Plan High Dividend Stock Enhanced ETF | ARCX:TPHE | 24.76 | USD |
| WisdomTree Global High Dividend Fund | ARCX:DEW | 52.56 | USD |
| SP FUNDS DOW JONES GLOBAL SU | ARCX:SPSK | 18.02 | USD |
| WisdomTree US MidCap Dividend Fund | ARCX:DON | 51.06 | USD |
| Fidelity Dividend for Rising Rates | ARCX:FDRR | 51.41 | USD |
| SPDR® SSGA Fixed Income Sector Rotation ETF | ARCX:FISR | 25.36 | USD |
| PROSHARES S&P TECH DVD ARIST | BATS:TDV | 76.22 | USD |
| Amplify ETF Trust Amplify Natural Resources Dividend Income ETF | ARCX:NDIV | 27.28 | USD |
| INVESCO VARIABLE RATE PREFER | ARCX:VRP | 24.32 | USD |
| Victory CEMP US Small Cap High Dividend Volatility Weighted | XNAS:CSB | 59.35 | USD |
| VictoryShares US Large Cap High Div Vola | XNAS:CDL | 65.24 | USD |
| WisdomTree U S | XNAS:DGRS | 51.35 | USD |
| FlexShares Quality Dividend Index Fund | ARCX:QDF | 70.98 | USD |
| WisdomTree International High Divid Fund | ARCX:DTH | 37.54 | USD |
| WisdomTree Dynamic Currency Hedged Intl | BATS:DDLS | 34.64 | USD |
| ALPS Int'l Sector Dividend Dogs ETF | ARCX:IDOG | 28.44 | USD |
| Federated Hermes ETF Trust Federated Hermes U.S. Strategic Dividend ETF | ARCX:FDV | 26.73 | USD |
| VanEck Vectors Morningstar Durable Dividend | BATS:DURA | 32.84 | USD |
| WisdomTree Emerging Market High Div Fund | ARCX:DEM | 40.86 | USD |
| ALPS Emerging Sector Dividend Dogs ETF | ARCX:EDOG | 20.70 | USD |
| First Trst DJ STOXX Slct Dvdnd 30Indx Fd | ARCX:FDD | 11.14 | USD |
| Legg Mason Low Volatility High Dividend | XNAS:LVHD | 38.72 | USD |
| Nuveen Dividend Growth ETF | ARCX:NDVG | 32.86 | USD |
| SmartETFs Asia Pacific Dividend Builder ETF | ARCX:ADIV | 15.14 | USD |