L'intérêt à découvert pour Schwab US Dividend Equity ETF donne aux investisseurs une idée du degré auquel les investisseurs parient sur la baisse de l'action de Schwab US Dividend Equity ETF. Les données sur l'intérêt à découvert sont mises à jour toutes les deux semaines.

Schwab US Dividend Equity ETF (ARCA:SCHD), Rapport sur les intérêts à découvert

Schwab US Dividend Equity ETF

Industrials

Healthcare

Financial Services

Technology

Consumer Defensive

Consumer Cyclical

Energy

Communication Services

Basic Materials

Utilities

Other

To pursue its goal, the fund generally invests in stocks that are included in the Dow Jones U.S. Dividend 100 Index. The Dow Jones U.S. Dividend 100 Index is designed to measure the performance of high dividend yielding stocks issued by U.S. companies that have a record of consistently paying dividends, selected for fundamental strength relative to their peers, based on financial ratios. The 100-component index is a subset of the Dow Jones U.S. Broad Market Index, excluding real estate investment trusts (REITs), master limited partnerships, preferred stocks and convertibles. It is modified market capitalization weighted.

Lockheed Martin Corp

Abbvie Inc.

Home Depot Inc/The

Blackrock Inc.

Amgen Inc.

Cisco Systems, Inc.

Coca Cola Co.

Texas Instruments Inc

Chevron Corporation

Pfizer, Inc.

In today&#39;s uncertain markets, investors increasingly turn to dividend-paying stocks as a reliable strategy for generating passive income and enhancing portfolio stability. Schwab US Dividend Equity ETF (ARCA:SCHD) stands out because it consistently delivers strong returns, outperforming the S&amp;P 500 for the past five years. SCHD leads the way when executing a dividend growth strategy and building a well-rounded, income-focused portfolio.
<h2>SCHD&#39;s Winning Formula: Quality and Growth</h2>
SCHD&#39;s success comes from a strict investment strategy that balances consistent income and long-term capital appreciation. This dividend exchange-traded fund (ETF) meticulously tracks the Dow Jones U.S. Dividend 100 Index, including 100 U.S. companies with proven dividend profiles and solid financial fundamentals.
The ETF&#39;s selection process prioritizes companies committed to rewarding shareholders through sustained and increasing dividend payouts. To be eligible for the fund, a company must have a history of at least ten consecutive years of uninterrupted dividend payments. This strict requirement eliminates companies with inconsistent dividend histories or susceptibility to economic fluctuations.
However, SCHD goes beyond dividend payment history, favoring companies with solid financial health. This includes strong balance sheets, sustainable dividend payout ratios, and the potential for earnings and dividend growth in the future. For example, SCHD considers a company&#39;s debt-to-equity ratio (D/E), which ideally should be low, indicating less reliance on borrowed funds. A higher return on equity (ROE) is another positive signal, suggesting efficient use of shareholder investment to generate profits. By emphasizing these factors, SCHD looks to minimize the risk of dividend cuts while maximizing the potential for share price growth to complement the dividend income.
Furthermore, SCHD&#39;s diversified sector allocation enhances its resilience. While primarily investing in U.S. large-cap stocks, the ETF strategically allocates across diverse sectors. This balanced approach mitigates sector-specific risks, ensuring the ETF&#39;s overall performance is not overly dependent on any single industry.
<h2>The Numbers Don&#39;t Lie: A Track Record of Impressive Returns</h2>
SCHD&#39;s historical performance reveals the ETF&#39;s legacy of consistent growth and market-beating returns. According to the fund prospectus, since its inception on October 19, 2011, the ETF has delivered an impressive average annual return of 13.4%. This performance surpasses the broader S&amp;P 500 Index, which has averaged approximately 11% over the same period. SCHD&#39;s track record shows the fund has a well-executed investment strategy, emphasizing dividend income and capital appreciation.
Investors seeking consistent income streams will find SCHD&#39;s current dividend yield of 3.03% particularly attractive, especially compared to the S&amp;P 500&#39;s average dividend yield of 1.32%. This high yield positions SCHD as a cost-effective way to access a diversified dividend income stream. Furthermore, the ETF boasts a remarkably low expense ratio of 0.06%, ensuring that a greater portion of investor returns remains in their pockets.
Recent events further reinforce SCHD&#39;s positive momentum. In September, the ETF achieved a new 52-week high of $85.24, driven by strong institutional buying and positive investor sentiment surrounding its solid strategy and well-established holdings. Additionally, SCHD recently announced a 3-for-1 stock split scheduled for Oct 11, 2024, making the ETF more accessible to a broader range of individual investors. This action is expected to enhance liquidity, making buying and selling shares easier and potentially contributing to increased future trading volume.
<h2>Outpacing the Competition: SCHD&#39;s Unique Advantages</h2>
SCHD stands out in a crowded field of dividend-focused ETFs because of its unique approach. Many dividend ETFs prioritize high current yields or focus exclusively on undervalued companies. However, SCHD takes a more balanced approach, carefully selecting companies based on a combination of factors that include a history of consistent dividend growth, robust financial health, and the potential for future earnings growth.
This well-rounded strategy, combined with its exceptionally low expense ratio of 0.06%, allows SCHD to deliver strong total returns, often exceeding the performance of its peers. By emphasizing quality, growth, and value, SCHD offers investors a compelling path to building long-term wealth while enjoying a steady dividend income stream.
<h2>A Strategic Building Block for Your Portfolio</h2>
SCHD&#39;s versatility and performance make it an ideal addition to a range of investment strategies. For income-focused investors seeking consistent cash flow, SCHD provides a reliable stream of dividend income without sacrificing the potential for long-term growth. Younger investors with a longer time horizon can benefit from SCHD&#39;s dual focus on income and capital appreciation, allowing their investments to compound over time and potentially outpace inflation.
SCHD can also serve as a stabilizing force within a balanced portfolio, complementing growth-oriented investments and reducing overall volatility. Regardless of individual objectives, investors should carefully consider their risk tolerance, time horizon, and financial goals when deciding how to allocate SCHD within their portfolios. It&#39;s also essential to remember that dividend income is generally taxable, and investors should consult with a financial advisor to understand the tax implications relevant to their situation.
<h2>SCHD: A Dividend Powerhouse Worth Investigating</h2>
SCHD consistently rises to the top when competitively analyzing ETFs. Its solid strategy, impressive track record, remarkably low costs, and potential for income and growth make it an exceptional investment vehicle. Investors seeking a simplified, professionally managed, and potentially highly rewarding way to participate in the dividend market should explore SCHD further. This involves conducting thorough research, including examining the ETF&#39;s underlying index, evaluating its top holdings, and assessing its long-term performance during various market cycles.
By carefully considering SCHD&#39;s features and aligning them with their own investment goals, investors can harness the power of this dividend powerhouse to potentially build long-term wealth.
The article &quot;<a href="https://www.marketbeat.com/originals/schd-etf-unlocking-passive-income-with-strong-returns/">SCHD ETF: Unlocking Passive Income With Strong Returns</a>&quot; first appeared on MarketBeat.

Earnings

Large Cap

News

Sector ETFs

Dividends

Stock Split

Markets

Trading Ideas

ETFs

SCHD

SCHD ETF: Unlocking Passive Income With Strong Returns

Launched on 01/07/2014, the First Trust Rising Dividend Achievers ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/rdvy#NASDAQ">RDVY</a>) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market.
The fund is sponsored by First Trust Advisors. It has amassed assets over $11.71 billion, making it one of the larger ETFs attempting to match the Large Cap Value segment of the US equity market.
<h2>Why Large Cap Value</h2>
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. Looking at their long-term performance, value stocks have outperformed growth stocks in almost all markets. They are however likely to underperform growth stocks in strong bull markets.
<h2>Costs</h2>
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.49%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.83%.
<h2>Sector Exposure and Top Holdings</h2>
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund&#39;s holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Financials sector--about 42% of the portfolio. Information Technology and Consumer Discretionary round out the top three.
Looking at individual holdings, D.r. Horton, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dhi#NYSE">DHI</a>) accounts for about 2.41% of total assets, followed by Mueller Industries, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mli#NYSE">MLI</a>) and Aflac Incorporated (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/afl#NYSE">AFL</a>).
The top 10 holdings account for about 22.38% of total assets under management.
<h2>Performance and Risk</h2>
RDVY seeks to match the performance of the NASDAQ US Rising Dividend Achievers Index before fees and expenses. The NASDAQ US Rising Dividend Achievers Index is designed to provide access to a diversified portfolio of companies with a history of paying dividends.
The ETF has added roughly 12.45% so far this year and was up about 23.75% in the last one year (as of 09/17/2024). In the past 52-week period, it has traded between $43.44 and $58.75.
The ETF has a beta of 1.11 and standard deviation of 19.70% for the trailing three-year period, making it a medium risk choice in the space. With about 51 holdings, it effectively diversifies company-specific risk.
<h2>Alternatives</h2>
First Trust Rising Dividend Achievers ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, RDVY is a great option for investors seeking exposure to the Style Box - Large Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Schwab U.S. Dividend Equity ETF (ARCA:SCHD) and the Vanguard Value ETF (ARCA:VTV) track a similar index. While Schwab U.S. Dividend Equity ETF has $60.60 billion in assets, Vanguard Value ETF has $126.51 billion. SCHD has an expense ratio of 0.06% and VTV charges 0.04%.
<h2>Bottom-Line</h2>
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
<a href="https://www.zacks.com/stock/news/2336911/should-first-trust-rising-dividend-achievers-etf-rdvy-be-on-your-investing-radar?cid=CS-BENZ-FT-style_box_etf-2336911">To read this article on Zacks.com click here.</a>

Equities

Mid Cap

Analyst Ratings

RDVY

Should First Trust Rising Dividend Achievers ETF Be on Your Investing Radar?

As the Federal Reserve transitions from a restrictive monetary policy to a more accommodative stance, investors are questioning how this regime change will <a href="https://www.benzinga.com/topic/interest-rates">impact various asset classes. </a>
The central bank&#8217;s shift towards lower interest rates can have far-reaching implications across equities, bonds, and other markets.
Historically, stocks have tended to perform well following the Fed&#8217;s initial rate cuts—but with a crucial caveat: the economy must avoid slipping into a recession. An <a href="https://www.benzinga.com/economics/macro-economic-events/24/09/40855247/fed-rate-cuts-and-s-p-500-the-why-matters-most-data-shows">analysis by Goldman Sachs</a> reveals that the S&amp;P 500 has experienced significant declines even after rate cuts if the U.S. economy entered a recession during those periods.
When it comes to bonds, lower interest rates have generally led to a decrease in bond yields, thus driving up bond prices. Unlike equities, this dynamic has historically played out somewhat independently of the economic cycle. However, &#8220;what's past is prologue&#8221; is not always a guarantee in financial markets.
<h2 class="wp-block-heading">&#8216;Quality Can Be Found Across Asset Classes&#8217;</h2>
According to Bank of America&#8217;s latest Research Investment Committee (RIC) report, investors can identify quality opportunities across various asset classes, particularly in today&#8217;s shifting market landscape.
BofA analysts suggest that in the U.S. equity space, investors should adopt a defensive stance, focusing on companies with high free cash flow.
Savita Subramanian, head of U.S. equity &amp; quantitative strategy at BofA, notes that S&amp;P 500 valuations indicate low price returns for the next decade, making dividend payouts more crucial for total returns.
<ul>
<li>Utilities: Recently <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40823561/this-under-the-radar-defensive-ai-sector-quietly-outperforms-all-others-despite-rec">upgraded to Overweight by BofA, </a>the utilities sector stands out for its defensive characteristics and competitive yield. Subramanian indicates that growing power demand driven by AI-linked data centers bolsters the outlook for utility companies. ETFs like the First Trust Utilities AlphaDEX ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXU#NYSE">FXU</a>) and the Utilities Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>) are potential plays in this space.</li>
<li>Real Estate: Offering higher quality yield than before, with 70% of the sector rated B+ or better, the real estate sector provides attractive options. BofA notes that the S&amp;P 500 real estate segment has relatively low office exposure, which could mitigate some risks. Recommended ETFs include the Real Estate Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>) and iShares Cohen &amp; Steers REIT ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ICF#NYSE">ICF</a>).</li>
<li>Consumer Staples: BofA finds the consumer staples sector tactically attractive, especially ETFs like the Consumer Staples Select Sector SPDR ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>), which has substantial exposure to resilient companies like The Procter &amp; Gamble Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PG#NYSE">PG</a>), Costco Wholesale Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COST#NASDAQ">COST</a>), Walmart Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>). Another sector play here is the iShares U.S. Consumer Staples ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYK#NYSE">IYK</a>). </li>
<li>Value, Quality, Dividends, and Buybacks: The bank is also bullish on factor-based ETFs, recommending exposure in value, quality, dividend, and buyback amid a strong free cash flow yield and potential for higher payouts than the broader S&amp;P 500 index. ETFs in this category include the Vanguard Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTV#NYSE">VTV</a>), Pacer US Cash Cows 100 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COWZ#NYSE">COWZ</a>), Schwab US Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>), and iShares Core Dividend ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIVB#NYSE">DIVB</a>).</li>
</ul>
Outside the U.S., Bank of America is bullish on Japanese equities as effective corporate reforms are expected &#8220;to unleash a mountain of cash.&#8221; The WisdomTree Japan Hedged Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DXJ#NYSE">DXJ</a>) is a top pick in this market, having gained 125% since 2019. This ETF also offers protection against the yen&#8217;s devaluation. 
In the fixed-income market, BofA suggests exposure to AAA-rated collateralized loan obligations (CLOs) and long-dated Treasury bonds.
<ul>
<li>CLOs: BofA recommends the Janus Henderson AAA CLO ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JAAA#NYSE">JAAA</a>), viewing these loans as quality yield options that have withstood stress during both the 2008 financial crisis and the 2020 pandemic-induced downturn.</li>
<li>Long-Dated Treasuries: Investors looking for duration exposure can consider the iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>), which tracks long-dated Treasury bonds with a 17-year duration.</li>
</ul>
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>Asset Class</th>
<th>Name</th>
</tr>
</thead>
<tbody>
<tr>
<td colspan="3">Equities</td>
</tr>
<tr>
<td>Utilities</td>
<td>First Trust Utilities AlphaDEX ETF</td>
</tr>
<tr>
<td>Utilities </td>
<td>Utilities Select Sector SPDR Fund</td>
</tr>
<tr>
<td>Real Estate</td>
<td>Real Estate Select Sector SPDR Fund </td>
</tr>
<tr>
<td>Real estate</td>
<td>iShares Cohen &amp; Steers REIT ETF</td>
</tr>
<tr>
<td>Consumer staples</td>
<td>Consumer Staples Select Sector SPDR ETF </td>
</tr>
<tr>
<td>Consumer staples</td>
<td>iShares U.S. Consumer Staples ETF</td>
</tr>
<tr>
<td>Value</td>
<td>Vanguard Value ETF</td>
</tr>
<tr>
<td>Quality</td>
<td>Pacer US Cash Cows 100 ETF </td>
</tr>
<tr>
<td>Dividend</td>
<td>Schwab US Dividend Equity ETF</td>
</tr>
<tr>
<td>Buybacks</td>
<td>iShares Core Dividend ETF </td>
</tr>
<tr>
<td>Japan</td>
<td>Wisdom Tree Japan Hedged Equity ETF</td>
</tr>
<tr>
<td colspan="3">Fixed income</td>
</tr>
<tr>
<td>Credit</td>
<td>Janus Henderson AAA CLO ETF</td>
</tr>
<tr>
<td>Duration</td>
<td>iShares 20+ Year Treasury Bond ETF </td>
</tr>
</tbody>
</table>
</figure>
Read Next:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40887448/long-dated-treasury-bond-etf-hits-14-month-highs-ahead-of-imminent-fed-rate-cut">Long-Dated Treasury Bond ETF Hits 14-Month Highs Ahead Of Imminent Fed Rate Cut</a></li>
</ul>
Image created using artificial intelligence via Midjourney.

Analyst Color

REIT

Bonds

Broad U.S. Equity ETFs

Specialty ETFs

New ETFs

Treasuries

Econ #s

Real Estate

COST

COWZ

DIVB

WisdomTree Trust Japan Total Dividend Fund

iShares Trusthen & Steers Realty Majors Index Fund

iShares Trust Dow Jones USnsumer Goods Sector Index Fund

JAAA

iShares Trust Barclays 20+ Year Treasury Bond Fund

XLRE

13 ETFs To Own As Fed Set To Cut Rates: Analysts Highlight Utilities, Real Estate, And More

Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the Invesco Dividend Achievers ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/pfm#NASDAQ">PFM</a>) is a passively managed exchange traded fund launched on 09/15/2005.
The fund is sponsored by Invesco. It has amassed assets over $697.06 million, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.
<h2>Why Large Cap Value</h2>
Large cap companies usually have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Value stocks have lower than average price-to-earnings and price-to-book ratios. They also have lower than average sales and earnings growth rates. While value stocks have outperformed growth stocks in nearly all markets when you consider long-term performance, growth stocks are more likely to outpace value stocks in strong bull markets.
<h2>Costs</h2>
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.53%, making it one of the more expensive products in the space.
It has a 12-month trailing dividend yield of 1.65%.
<h2>Sector Exposure and Top Holdings</h2>
It is important to delve into an ETF&#39;s holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 21.40% of the portfolio. Financials and Healthcare round out the top three.
Looking at individual holdings, Apple Inc&nbsp;accounts for about 4.31% of total assets, followed by Microsoft Corp and Broadcom Inc.
The top 10 holdings account for about 26.99% of total assets under management.
<h2>Performance and Risk</h2>
PFM seeks to match the performance of the NASDAQ US Broad Dividend Achievers Index before fees and expenses. The NASDAQ US Broad Dividend Achievers Index is designed to identify a diversified group of dividend-paying companies which have increased their annual dividend for 10 or more consecutive fiscal years.
The ETF has gained about 16.28% so far this year and it&#39;s up approximately 23.33% in the last one year (as of 09/16/2024). In the past 52-week period, it has traded between $35.25 and $46.01.
The ETF has a beta of 0.83 and standard deviation of 13.92% for the trailing three-year period, making it a medium risk choice in the space. With about 426 holdings, it effectively diversifies company-specific risk.
<h2>Alternatives</h2>
Invesco Dividend Achievers ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, PFM is a great option for investors seeking exposure to the Style Box - Large Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Schwab U.S. Dividend Equity ETF (ARCA:SCHD) and the Vanguard Value ETF (ARCA:VTV) track a similar index. While Schwab U.S. Dividend Equity ETF has $60.01 billion in assets, Vanguard Value ETF has $125.50 billion. SCHD has an expense ratio of 0.06% and VTV charges 0.04%.
<h2>Bottom-Line</h2>
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
<a href="https://www.zacks.com/stock/news/2336235/should-invesco-dividend-achievers-etf-pfm-be-on-your-investing-radar?cid=CS-BENZ-FT-style_box_etf-2336235">To read this article on Zacks.com click here.</a>

Tech

PowerShares Exchange Traded Fund Trust Dividend Achievers Portfolio

Should Invesco Dividend Achievers ETF Be on Your Investing Radar?

The Schwab Fundamental U.S. Large Company ETF (ARCA:FNDX) made its debut on 08/13/2013, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Value category of the market.
<h2>What Are Smart Beta ETFs?</h2>
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
There are some investors, though, who think it&#39;s possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
<h2>Fund Sponsor &amp; Index</h2>
The fund is managed by Charles Schwab. FNDX has been able to amass assets over $16.17 billion, making it one of the largest ETFs in the Style Box - Large Cap Value. FNDX, before fees and expenses, seeks to match the performance of the Russell RAFI US Large Co. Index.
The RAFI Fundamental High Liquidity US Large Index measures the performance of large U.S. companies based on their fundamental size and weight.
<h2>Cost &amp; Other Expenses</h2>
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Operating expenses on an annual basis are 0.25% for this ETF, which makes it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.75%.
<h2>Sector Exposure and Top Holdings</h2>
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund&#39;s holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
FNDX&#39;s heaviest allocation is in the Financials sector, which is about 19.50% of the portfolio. Its Information Technology and Healthcare round out the top three.
Looking at individual holdings, Apple Inc accounts for about 4.40% of total assets, followed by Microsoft Corp&nbsp;and Berkshire Hathaway Inc Class B.
The top 10 holdings account for about 20.23% of total assets under management.
<h2>Performance and Risk</h2>
The ETF has gained about 11.42% and it&#39;s up approximately 20.30% so far this year and in the past one year (as of 09/09/2024), respectively. FNDX has traded between $53.46 and $70.84 during this last 52-week period.
FNDX has a beta of 0.99 and standard deviation of 15.80% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 738 holdings, it effectively diversifies company-specific risk.
<h2>Alternatives</h2>
Schwab Fundamental U.S. Large Company ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
Schwab U.S. Dividend Equity ETF (ARCA:SCHD) tracks Dow Jones U.S. Dividend 100 Index and the Vanguard Value ETF (ARCA:VTV) tracks CRSP U.S. Large Cap Value Index. Schwab U.S. Dividend Equity ETF has $58.84 billion in assets, Vanguard Value ETF has $122.62 billion. SCHD has an expense ratio of 0.06% and VTV charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value.
<a href="https://www.zacks.com/stock/news/2333159/is-schwab-fundamental-u-s-large-company-etf-fndx-a-strong-etf-right-now?cid=CS-BENZ-FT-smart_beta_etf-2333159">To read this article on Zacks.com click here.</a>

Asset Sales

FNDX

Is Schwab Fundamental U.S. Large Company ETF a Strong ETF Right Now?

Looking for broad exposure to the Large Cap Value segment of the US equity market? You should consider the First Trust Value Line Dividend ETF (ARCA:FVD), a passively managed exchange traded fund launched on 08/19/2003.
The fund is sponsored by First Trust Advisors. It has amassed assets over $9.72 billion, making it one of the larger ETFs attempting to match the Large Cap Value segment of the US equity market.
<h2>Why Large Cap Value</h2>
Large cap companies typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. When you look at long-term performance, value stocks have outperformed growth stocks in nearly all markets. But in strong bull markets, growth stocks are more likely to be winners.
<h2>Costs</h2>
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.60%, making it one of the most expensive products in the space.
It has a 12-month trailing dividend yield of 2.12%.
<h2>Sector Exposure and Top Holdings</h2>
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Industrials sector--about 19.50% of the portfolio. Utilities and Consumer Staples round out the top three.
Looking at individual holdings, Kellanova (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/k#NYSE">K</a>) accounts for about 0.62% of total assets, followed by Erie Indemnity Company (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/erie#NASDAQ">ERIE</a>) and Lockheed Martin Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/lmt#NYSE">LMT</a>).
The top 10 holdings account for about 5.55% of total assets under management.
<h2>Performance and Risk</h2>
FVD seeks to match the performance of the Value Line Dividend Index before fees and expenses. The Value Line Dividend Index is a modified equal dollar weighted index comprised of U.S. exchange listed securities of companies that pay above-average dividends and have potential for capital appreciation.
The ETF has added about 11.07% so far this year and is up about 16.28% in the last one year (as of 09/04/2024). In the past 52-week period, it has traded between $36.09 and $44.80.
The ETF has a beta of 0.79 and standard deviation of 13.51% for the trailing three-year period, making it a medium risk choice in the space. With about 208 holdings, it effectively diversifies company-specific risk.
<h2>Alternatives</h2>
First Trust Value Line Dividend ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, FVD is a reasonable option for those seeking exposure to the Style Box - Large Cap Value area of the market. Investors might also want to consider some other ETF options in the space.
The Schwab U.S. Dividend Equity ETF (ARCA:SCHD) and the Vanguard Value ETF (ARCA:VTV) track a similar index. While Schwab U.S. Dividend Equity ETF has $59.94 billion in assets, Vanguard Value ETF has $123.92 billion. SCHD has an expense ratio of 0.06% and VTV charges 0.04%.
<h2>Bottom-Line</h2>
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
<a href="https://www.zacks.com/stock/news/2331114/should-first-trust-value-line-dividend-etf-fvd-be-on-your-investing-radar?cid=CS-BENZ-FT-style_box_etf-2331114">To read this article on Zacks.com click here.</a>

ERIE

First Trust Value Line Dividend Index Fund ETF

Should First Trust Value Line Dividend ETF Be on Your Investing Radar?

Verizon Communications Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>) <a href="https://www.benzinga.com/pressreleases/24/08/g40311428/verizon-to-upgrade-sd-wan-at-49-national-labor-relations-board-locations" target="_blank" rel="noreferrer noopener">inked a new</a> Enterprise Infrastructure Solutions (EIS) deal with the National Labor Relations Board (NLRB), an independent federal agency that focuses on the rights of <a href="https://www.benzinga.com/topic/telecom">private sector employees</a>.
Under the $4 million contract, Verizon will reconfigure and upgrade NLRB&#8217;s Software-Defined Wide Area Network (SD-WAN) at all 48 branch offices, including its headquarters.
Additionally, Verizon&#8217;s solution includes new distributed security infrastructure and cloud hosting services.
&#8220;The NLRB win reaffirms Verizon&#8217;s market position as the premier provider of EIS services to federal agencies,&#8221; said Michael Adams, Associate Vice President, Federal Civilian Business at Verizon.
A software-defined wide area network helps these organizations in quality and cost control.
In July, Verizon reported <a target="_blank" href="https://www.benzinga.com/news/earnings/24/07/39883078/verizon-q2-earnings-wireless-revenue-and-broadband-subs-gain-traction-sales-fall-short-of-expectati" rel="noreferrer noopener">second-quarter sales</a> of $32.8 billion, which was below the consensus estimate of $33.1 billion. Verizon Consumer revenue was $24.9 billion and Verizon Business revenues stood at $7.3 billion.
Verizon Communications stock gained over 21% in the last 12 months. Investors can gain exposure to the stock through Schwab US Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>) and SPDR S&amp;P 500 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>).
Price action:&nbsp;VZ shares traded higher by&nbsp;0.17% at $40.82 premarket at the last check Monday.
Now Read:
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<li><a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/24/08/40314918/markets-experience-best-and-worst-days-since-2022-whats-next-in-wall-streets-rollercoa">Markets Experience Best And Worst Days Since 2022: What&#8217;s Next In Wall Street&#8217;s Rollercoaster Ride?</a></li>
</ul>

Government

Verizon Secures $4M Federal Contract, Touts New Security Infrastructure

BlackRock, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLK#NYSE">BLK</a>) is selling $2.5 billion in U.S. investment-grade bonds to help pay for its <a href="https://www.benzinga.com/markets/equities/24/07/39570007/blackrocks-aladdin-gets-smarter-3-2b-deal-adds-preqins-private-markets-data">$3.2 billion acquisition</a> of private-markets data company Preqin.
What Happened: According <a href="https://www.bloomberg.com/news/articles/2024-07-17/blackrock-taps-blue-chip-bond-market-to-fund-preqin-purchase?srnd=markets-vp&amp;sref=TBDibEcD">to</a> Bloomberg, citing an anonymous source, BlackRock Funding plans to sell the notes in three tranches.
The longest part of the deal matures in 30 years. It expects to yield one percentage point above Treasuries.
BlackRock did not immediately respond to Benzinga&#8217;s request for comment on the reported transaction.
BlackRock agreed to acquire London-based Preqin as part of an effort to grow its presence in private-markets investing. In January, the firm spent $12.5 billion to take over Global Infrastructure Partners.
Also Read: <a href="https://feeds2.benzinga.com/markets/equities/24/07/39603383/blackrocks-preqin-acquisition-to-drive-revenue-synergies-analyst-sees-expansion-in-emerging-priv">BlackRock&#8217;s Preqin Acquisition To Drive Revenue Synergies: Analyst Sees Expansion In Emerging Private Markets</a>
Private markets are rapidly growing and expected to reach nearly $40 trillion by decade's end. This sector's data market, currently valued at $8 billion, is growing 12% annually and is projected to reach $18 billion by 2030.
The Preqin acquisition is expected to close by the end of this year. Bank of America Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>), JPMorgan Chase &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>), Morgan Stanley (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MS#NYSE">MS</a>) and Wells Fargo &amp; Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>) are leading the bond sale.
The three-year portion of the notes offering comes with a special mandatory redemption clause, which means BlackRock will buy back the notes at 101% if the Preqin deal fails to close by Sept. 2, 2025.
Price Action: BlackRock dipped 0.54% to $839.40 by late-afternoon trading on Wednesday, while exchange-traded funds that hold the stock rose and fell.
Fidelity Disruptive Finance ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FDFF#NASDAQ">FDFF</a>) lost 0.35% as Schwab U.S. Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>) gained 1.32% and The Nightview Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NITE#NYSE">NITE</a>) slipped 3.1%. Madison Dividend Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIVL#NYSE">DIVL</a>) edged up 0.92% and Copper Place Global Dividend Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GDVD#NYSE">GDVD</a>) rose 0.52%.GDVD
Read Now: 
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<li><a href="https://www.benzinga.com/news/earnings/24/07/39791571/blackrock-analysts-raise-their-forecasts-following-upbeat-earnings">BlackRock Analysts Raise Their Forecasts Following Upbeat Earnings</a></li>
</ul>

Financing

DIVL

FDFF

GDVD

NITE

BlackRock Sells $2.5B In Bonds To Help Fund Preqin Deal: Report

Investment giant&nbsp;BlackRock, Inc.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLK#NYSE">BLK</a>) shares are trading higher after the company reported&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/07/b39767432/blackrock-reports-second-quarter-2024-earnings" rel="noreferrer noopener">second-quarter&nbsp;FY24 results</a>.
Revenue growth of 8%&nbsp;Y/Y to&nbsp;$4.805 billion, missing the consensus of&nbsp;$4.849 billion.&nbsp;
Investment advisory, administration fees, and securities lending revenues increased to&nbsp;$3.875 billion&nbsp;from&nbsp;$3.611 billion&nbsp;a year ago, led by positive organic base fee growth and the impact of market beta on average AUM.
Technology services revenue increased to&nbsp;$395 million&nbsp;from&nbsp;$359 million&nbsp;the prior year, reflecting continued demand for Aladdin technology offerings.
Related: <a target="_blank" href="https://www.benzinga.com/markets/equities/24/07/39570007/blackrocks-aladdin-gets-smarter-3-2b-deal-adds-preqins-private-markets-data" rel="noreferrer noopener">BlackRock&#8217;s Aladdin Gets Smarter: $3.2B Deal Adds Preqin&#8217;s Private Markets Data</a>
BLK stated that the net inflow stood at&nbsp;$82 billion&nbsp;in the quarter, resulting in a 3% organic base fee growth.
Laurence D. Fink, Chairman, and CEO said, &#8220;Organic growth was driven by private markets, retail active fixed income, and surging flows into our ETFs, which had their best start to a year on record.&#8221;
Read: <a target="_blank" href="https://www.benzinga.com/markets/cryptocurrency/24/05/39068825/blackrocks-bitcoin-etf-dominates-market-with-nearly-20b-in-assets-report" rel="noreferrer noopener">BlackRock&#8217;s Bitcoin ETF Dominates Market with Nearly $20B in Assets: Report</a>
Adjusted operating income rose&nbsp;12%&nbsp;Y/Y to&nbsp;$1.88 billion, with the margin expanding to&nbsp;44.1%&nbsp;from&nbsp;42.5%&nbsp;a year ago.
Adjusted EPS increased&nbsp;12%&nbsp;Y/Y to&nbsp;$10.36,&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">beating the consensus of&nbsp;$9.93.</a>
Total AUM stood at&nbsp;$10.6 trillion in AUM, up $1.2 trillion year-over-year, driven by consistent organic growth and positive market movements.
BLK&#8217;s Board of Directors paid a quarterly cash dividend per share of&nbsp;$5.10&nbsp;and repurchased shares worth&nbsp;$500 million&nbsp;in the quarter.&nbsp;
Fink added, &#8220;We are on pace to close our planned acquisition of Global Infrastructure Partners in the third quarter of 2024, which is expected to double private markets base fees and add approximately $100 billion of infrastructure AUM. And just a few weeks ago, we announced our agreement to acquire Preqin, a leading private markets data provider.&#8221;
Also Read: <a target="_blank" href="https://www.benzinga.com/markets/equities/24/07/39603383/blackrocks-preqin-acquisition-to-drive-revenue-synergies-analyst-sees-expansion-in-emerging-priv" rel="noreferrer noopener">BlackRock&#8217;s Preqin Acquisition To Drive Revenue Synergies: Analyst Sees Expansion In Emerging Private Markets</a>
Investors can gain exposure to the stock via&nbsp;Fidelity Disruptive Finance ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FDFF#NASDAQ">FDFF</a>) and&nbsp;Schwab US Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>).
Price Action: BLK shares are up 0.60% at $832.90 premarket at the last check Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo by rafapress on Shutterstock

Movers

BlackRock Q2 Earnings: ETF Boom, Record Inflows And Private Market Drive Growth

Launched on 05/22/2000, the iShares Russell 1000 Value ETF (ARCA:IWD) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market.
The fund is sponsored by Blackrock. It has amassed assets over $55.66 billion, making it the largest ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. Looking at their long-term performance, value stocks have outperformed growth stocks in almost all markets. They are however likely to underperform growth stocks in strong bull markets.
Costs
Investors should also pay attention to an ETF&#39;s expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.19%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 1.96%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund&#39;s holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Financials sector--about 23% of the portfolio. Industrials and Healthcare round out the top three.
Looking at individual holdings, Berkshire Hathaway Inc Class B&nbsp;accounts for about 3.54% of total assets, followed by JPMorgan Chase &amp; Co&nbsp;and Exxon Mobil Corp&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xom#NYSE">XOM</a>).
The top 10 holdings account for about 17.89% of total assets under management.
Performance and Risk
IWD seeks to match the performance of the Russell 1000 Value Index before fees and expenses. The Russell 1000 Value Index measures the performance of the large-capitalization value sector of the U.S. equity market.
The ETF has added about 6.18% so far this year and is up about 13.62% in the last one year (as of 07/09/2024). In the past 52-week period, it has traded between $143.69 and $179.11.
The ETF has a beta of 0.95 and standard deviation of 15.18% for the trailing three-year period, making it a medium risk choice in the space. With about 851 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Russell 1000 Value ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IWD is a great option for investors seeking exposure to the Style Box - Large Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Schwab U.S. Dividend Equity ETF (ARCA:SCHD) and the Vanguard Value ETF (ARCA:VTV) track a similar index. While Schwab U.S. Dividend Equity ETF has $54.39 billion in assets, Vanguard Value ETF has $115.94 billion. SCHD has an expense ratio of 0.06% and VTV charges 0.04%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
<a href="https://www.zacks.com/stock/news/2298260/should-ishares-russell-1000-value-etf-iwd-be-on-your-investing-radar?cid=CS-BENZ-FT-style_box_etf-2298260">To read this article on Zacks.com click here.</a>

Should iShares Russell 1000 Value ETF Be on Your Investing Radar?

Whirlpool Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WHR#NYSE">WHR</a>) shares are trading lower today. The stock pulled back after soaring higher yesterday due to news of Robert Bosch GmbH reportedly <a target="_blank" href="https://www.benzinga.com/m-a/24/06/39502758/home-appliances-giant-whirlpool-stock-is-soaring-on-wednesday-heres-why" rel="noreferrer noopener">considering a bid for the company</a>.
Goldman Sachs analyst Susan Maklari rated the stock <a target="_blank" href="https://www.benzinga.com/quote/WHR/analyst-ratings" rel="noreferrer noopener">as Buy and price target of $118</a>.
The analyst writes that while Robert Bosch holds a 6% share in the global major appliance market, its presence in North America is significantly smaller at 1.5%, while Whirlpool leads with approximately 25% market share in North America and 10% globally based on 2023 volumes.
Maklari says that a potential deal would enable Bosch to enhance its competitive position both globally and regionally.
This development coincides with European companies&#8217; increasing interest in expanding into the US building products industry to mitigate challenges in their local economies, writes the analyst.
However, the analyst expects regulatory hurdles to be anticipated due to current geopolitical dynamics.
The analyst notes that the company&#8217;s revenues and adjusted EBITDA decreased by 12% and 46%, respectively, from 2021 to 2023, which weighs on the valuation.
Whirlpool stock has lost over 32% in the last 12 months. Investors can gain exposure to the stock via&nbsp;the iShares Core S&amp;P Mid-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IJH#NYSE">IJH</a>)&nbsp;and&nbsp;the Schwab US Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>).
Price Action: WHR shares are down 1.95% at $99.92 at the last check Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo by Grzegorz Czapski via Shutterstock

Price Target

Reiteration

Bosch Bid Hype Fades, But Analyst Sees Whirlpool's Potential

Robert Bosch GmbH is reportedly considering a bid for U.S. appliance manufacturer Whirlpool Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WHR#NYSE">WHR</a>), according to three individuals familiar with the situation.
If successful, this acquisition would enhance Bosch&#8217;s presence in the white goods market, Reuters reports.
Whirlpool stock soared Wednesday on the news.
Also Read: <a target="_blank" href="https://www.benzinga.com/markets/equities/23/11/36020529/strategic-divestiture-whirlpool-to-partially-reduce-ownership-in-indian-subsidiary-in-2024" rel="noreferrer noopener">Strategic Divestiture: Whirlpool To Partially Reduce Ownership In Indian Subsidiary In 2024</a>
Bosch has been consulting with potential advisers regarding a possible offer for Whirlpool, which currently holds a market capitalization of approximately $4.8 billion.
Whirlpool has undergone significant restructuring recently, including merging its European operations into a new entity controlled by Turkish competitor Arçelik and selling off its Middle Eastern and African businesses.
The acquisition of Whirlpool, one of the largest global white goods producers, would significantly bolster Bosch&#8217;s home appliance division. This move is seen as a strategic effort to enhance market position and compete more effectively against growing Asian market players.
Whirlpool stock has lost over 39% in the last 12 months. Investors can gain exposure to the stock via the iShares Core S&amp;P Mid-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IJH#NYSE">IJH</a>) and the Schwab US Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>).
Price Action: WHR shares traded higher by 17.50% at $102.24 at the last check on Wednesday.
Also Read: <a target="_blank" href="https://www.benzinga.com/markets/equities/23/08/34038695/burned-by-delay-whirlpool-settles-for-millions-over-hazardous-cooktops" rel="noreferrer noopener">Burned By Delay: Whirlpool Settles For Millions Over Hazardous Cooktops</a>
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo by Grzegorz Czapski via Shutterstock

Media

Home Appliances Giant Whirlpool Stock Is Soaring On Wednesday - Here's Why

China has reportedly imposed sanctions on several subsidiaries and senior executives of Lockheed Martin Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LMT#NYSE">LMT</a>) in response to <a target="_blank" href="https://www.benzinga.com/topic/taiwan" rel="noreferrer noopener">U.S. arms sales to Taiwan</a>.
The sanctions include freezing the assets of Lockheed Martin&#8217;s senior executives, including Chairman James Donald Taiclet, and banning their entry into China, reported Reuters.
China&#8217;s foreign ministry announced that the sanctions target Lockheed Martin Missile System Integration Lab, Lockheed Martin Advanced Technology Laboratories, and Lockheed Martin Ventures, per the report.
Beijing has repeatedly urged the U.S. to cease its arms sales to Taiwan, a self-governed island that China claims as its own.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/06/39429701/us-and-china-confront-taiwan-issue-in-first-informal-nuclear-talks-in-5-years-report" rel="noreferrer noopener">US And China Confront Taiwan Issue In First Informal Nuclear Talks In 5 Years: Report</a>
This latest round of sanctions is part of a broader effort by China to counter foreign actions against it, especially those related to Taiwan. China&#8217;s sanctions law, enacted in 2021, aims to provide legal grounds for retaliatory measures.
This is not the first time China has sanctioned U.S. defense contractors for their dealings with Taiwan. In <a target="_blank" href="https://www.benzinga.com/markets/equities/23/09/34609264/china-sanctions-lockheed-martin-and-northrop-grumman-concerning-arms-sales-to-taiwan-report" rel="noreferrer noopener">September last year</a>, China sanctioned Lockheed Martin and Northrop Grumman Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOC#NYSE">NOC</a>).
Prior to that, Lockheed Martin and RTX Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RTX#NYSE">RTX</a>) Raytheon faced sanctions in 2019, 2020, 2022, and 2023, with the 2022 sanctions being the first under China&#8217;s anti-foreign sanctions law.
Earlier in May, the Biden administration imposed new tariffs on Chinese imports, targeting sectors such as <a target="_blank" href="https://www.benzinga.com/economics/macro-economic-events/24/05/38813115/biden-targets-chinese-imports-with-huge-tariff-hikes-ahead-of-election" rel="noreferrer noopener">electric vehicles, batteries, and semiconductors</a>.&nbsp;
Investors can gain exposure to the stock via IShares U.S. Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>) and Schwab U.S. Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>).
Price Action: LMT shares are trading higher by 0.23% at $467.43 at last check Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Read Next: <a href="https://www.benzinga.com/markets/equities/24/05/38913623/boeing-trades-nearly-1-lower-as-china-imposes-symbolic-sanctions-on-airplane-maker-and-other-us-" target="_blank" rel="noreferrer noopener">Boeing Trades Nearly 1% Lower as China Imposes Symbolic Sanctions On Airplane Maker And Other US Defense Firms Over Taiwan Arms Sales</a>
Photo Courtesy: AlmostViralDesign On Shutterstock.com

General

iShares Dow Jones US Aerospace & Defense Index Fund

China Sanctions Lockheed Martin Subsidiaries, Executives Over Taiwan Arms Sales: Report

Ford Motor Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>) is reportedly planning additional job cuts across its operations in Germany, <a target="_blank" href="https://www.benzinga.com/quote/F" rel="noreferrer noopener">Spain, and the U.K.</a>
This development is part of a broader strategy to streamline its workforce in Europe, particularly as the company shifts its focus towards electric vehicle (EV) production.
According to Benjamin Gruschka, the head of the workers&#8217; council at Ford&#8217;s Cologne plant, the specifics of the job cuts in Germany remain unclear but are expected to be defined by the end of June, reported Reuters.
The decision comes in addition to a previous restructuring initiative.
Ford has already implemented significant workforce reductions, having completed half of its planned 2,300 job cuts in Germany, reducing its staff to 13,000.
Also Read: <a target="_blank" href="https://www.benzinga.com/top-stories/24/06/39321797/ford-to-allow-all-us-dealers-to-sell-electric-vehicles-scraps-model-e-program" rel="noreferrer noopener">Ford To Allow All US Dealers To Sell Electric Vehicles, Scraps Model E Program</a>
Ford recently announced plans to cut up to 1,600 jobs at its Valencia plant as part of ongoing adjustments to optimize<a target="_blank" href="https://www.benzinga.com/news/24/06/39315574/whats-happening-with-fords-shares-on-thursday" rel="noreferrer noopener"> its production capacity and efficiency.</a>
Last year, Ford disclosed plans to eliminate 3,800 jobs across Europe due to the operational needs of EV production, which typically requires fewer personnel compared to <a target="_blank" href="https://www.benzinga.com/news/23/02/30893180/ford-plans-to-cut-3-800-jobs-in-europe" rel="noreferrer noopener">traditional car manufacturing.</a>
This move reflects Ford&#8217;s strategic pivot toward sustainable automotive solutions and aligns with industry-wide trends toward electric mobility.
&nbsp;Ford sold a total of 8,966 EVs in the U.S. in May, marking a near 65% jump <a target="_blank" href="https://www.benzinga.com/news/24/06/39179259/ford-again-defies-elon-musks-tough-quarter-gloom-as-ev-sales-keep-surging-after-q1-boom" rel="noreferrer noopener">from 2023 when it sold just 5,444 units.</a>
For 2024, Ford expects its EV division to post an EBIT loss between $5.5 billion and $5 billion, wider than the <a target="_blank" href="https://www.benzinga.com/news/24/06/39159541/really-an-incredible-person-jim-farley-says-theres-respectful-rivalry-with-tesla-ceo-elon-musk-outli" rel="noreferrer noopener">$4.7 billion loss recorded in 2023.</a>
Ford stock has lost more than 16% in the last 12 months. Investors can gain exposure to the stock via&nbsp;Schwab U.S. Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>) and IShares MSCI USA Value Factor ET (BATS:<a class="ticker" href="https://www.benzinga.com/stock/VLUE#BATS">VLUE</a>).
Price Action: F shares are trading lower by 0.34% at $11.80 at last check Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock

VLUE

Ford Plans Further Job Reductions in Germany, Spain, And UK: Report

Ford Motor Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>) shares are <a href="https://www.benzinga.com/topic/automotive">ticking lower on Thursday</a>.
The auto company announced further job cuts at its Valencia, Spain, assembly plant, totaling up to 1,600 positions, following a previous reduction of 1,100 staff last year.
The decision reflects ongoing adjustments in Ford&#8217;s European operations, reported Reuters.
The automaker, which currently employs about 4,700 workers at the Valencia facility, communicated to unions that 600 jobs would be cut permanently.
However, discussions are ongoing about potentially rehiring 1,000 workers in the future, as Ford plans to ramp up production with a new vehicle launch slated for 2027. 
Negotiations may lead to a temporary arrangement for the 1,000 workers affected, bridging the period until the new vehicle&#8217;s production begins.
Also Read: <a href="https://www.benzinga.com/news/24/06/39137548/whats-happening-with-fords-shares-today">Ford plans Level 3 autonomous driving By 2026</a>
The Valencia plant is set to start manufacturing a new hybrid passenger car aimed at the European and other markets starting in 2027, with an <a href="https://www.benzinga.com/news/24/05/38759934/ford-to-increase-production-at-valencia-plant-with-new-model">expected annual output of 300,000 unit</a>s.
Ford&#8217;s Valencia plant, located in the Almussafes district, currently produces the Kuga compact sports utility vehicle, having phased out other models in recent years. 
The plant's transition to new model production represents a significant strategic shift for Ford in Europe, focusing on hybrid technology to align with evolving market demands and regulatory standards.
These job cuts mark the second major workforce reduction at the Valencia facility within two years.
Ford stock has lost more than 15% in the last 12 months. Investors can gain exposure to the stock via&nbsp;Schwab U.S. Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>) and IShares MSCI USA Value Factor ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/VLUE#BATS">VLUE</a>).
Price Action: Ford shares are trading lower by 1.57% at $11.89 at last check on Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Read Next: <a href="https://www.benzinga.com/news/24/06/39179259/ford-again-defies-elon-musks-tough-quarter-gloom-as-ev-sales-keep-surging-after-q1-boom">Ford Again Defies Elon Musk&#8217;s &#8216;Tough Quarter&#8217; Gloom As EV Sales Keep Surging After Q1 Boom</a>

Movers & Shakers

What's Happening With Ford's Shares On Thursday?

Ford Motor Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>) shares are ticking higher <a href="https://www.benzinga.com/topic/ford">after the automaker</a> said its technology will enable drivers to take their eyes off the road and their hands off the wheel within the next two years.
"We're getting really close," said CEO Jim Farley in an interview with <a href="https://www.bloomberg.com/news/articles/2024-06-03/ford-ceo-in-two-years-drivers-won-t-have-to-watch-the-road?cmpid=socialflow-twitter-business&amp;utm_campaign=socialflow-organic&amp;utm_source=twitter&amp;utm_content=business&amp;utm_medium=social&amp;sref=TBDibEcD">Bloomberg</a>. &#8220;We can do it now pretty regularly with a prototype, but doing it in a cost-effective way is just the progress we're going to need to make.&#8221;
Farley is optimistic that Ford can achieve the milestone by 2026, potentially making it the first mass-market car brand to offer Level 3 autonomy. 
This level of autonomy allows the car to take over driving under certain conditions, enabling the driver to focus on other activities.
Currently, Ford and other automakers, including General Motors Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GM#NYSE">GM</a>), offer hands-free driving features that use eye-tracking devices to ensure the driver remains attentive. 
Ford's system, BlueCruise, is <a href="https://www.benzinga.com/markets/equities/24/04/38493842/fords-bluecruise-under-nhtsa-lens-after-fatal-crashes-report">under investigation by U.S. safety regulators </a>after being involved in fatal crashes. Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) and others are also being scrutinized by federal authorities for crashes involving their semi-autonomous systems.
Also Read: <a href="https://www.benzinga.com/news/24/05/39081508/tesla-ford-hit-the-brakes-in-uk-as-warren-buffett-backed-byd-zooms-ahead-with-2500-jump-in-registrat">Tesla, Ford Hit The Brakes In UK As Warren Buffett-Backed BYD Zooms Ahead With 2500% Jump In Registrations</a>
Mercedes-Benz began offering an eyes-off-the-road feature in the U.S. late last year, but it only operates at speeds below 40 miles per hour on pre-approved freeways. 
Farley suggested Ford's system would operate at speeds of up to 80 miles per hour on highways, but only under clear skies. 
Ford aims to generate recurring revenue by offering subscription services to features such as BlueCruise. Farley sees these high-margin software services as a way to stabilize the cyclical nature of the car business. 
Ford is already selling software systems to its commercial customers to manage fleet logistics and sees semi-autonomous features as a means to attract individual retail customers to buy software subscriptions. 
Ford stock has lost more than 3% in the last 12 months. Investors can gain exposure to the stock via Schwab U.S. Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>) and IShares MSCI USA Value Factor ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/VLUE#BATS">VLUE</a>).
Price Action: F shares are trading higher by 0.74% at $12.22 at last check Monday.
Read Next: <a href="https://www.benzinga.com/news/24/05/39056264/ford-teases-f-150-lightning-based-supertruck-set-to-climb-pikes-peak-in-june">Ford Teases F-150 Lightning-Based Supertruck Set To Climb Pikes Peak In June</a>
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo: Shutterstock

TSLA

What's Happening With Ford's Shares Today?

Representative Virginia Foxx from North Carolina reported a sale of Schwab US Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>) stock, according to a April filing. The transaction took place on April 4, 2023.
What Happened: A recent report from the House of Representatives Clerk's Office on April 4, 2023 reveals that Foxx made a sale of <a href="www.benzinga.com/quote/SCHD">Schwab US Dividend Equity ETF</a> stock valued between $50,001 - $100,000.
Schwab US Dividend Equity ETF shares are trading down 0.04% at $72.82 at the time of writing.
<h3>The Importance of Congressional Transactions</h3>
Congressional transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.
A Congressional transaction is when any Representative or Senator either buys or sells an individual stock. Anyone working in Congress must file a Periodic Transaction Report to inform the public of their recent transaction within 30 days of being notified of the transaction and within 45 days of the transaction date.
When a Senator or Representative makes a new purchase, that could be an indication that they expect the stock to rise.
A sale, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.
In April 2012, Former President Barack Obama signed the STOCK Act into law. The act prohibits members of Congress from using private information given to them by their position for personal gain such as buying or selling a stock. The act also expanded disclosure requirements for members of Congress by requiring them to file a monthly disclosure. 
<h3>Trade Recap</h3>
A April filing states that North Carolina Representative Virginia Foxx sold shares of Schwab US Dividend Equity ETF. The exact amount of the transaction remained unknown but the filing states a range of $50,001 - $100,000.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Politics

North Carolina Rep. Virginia Foxx Sold Up to $100K Worth of Schwab US Dividend Equity ETF Stock

The U.S. Senate on Wednesday voted to adopt a resolution to overturn&nbsp;a Department of Labor&nbsp;rule which allows retirement plans to consider environmental, social and governance (ESG) investing when making investment decisions, according to multiple news outlets.
What Happened: Republicans have been heavily critical of the President Joe Biden administration rule, saying it is part of a &quot;woke&quot;&nbsp;political agenda, although the rule merely gave retirement plans the ability to weigh ESG when making investment decisions as opposed to mandating the practice.
Biden is expected to veto the bill, which will mark the first of such actions taken by the president during his term, according to Bloomberg.
&ldquo;@SenSchumer is right: Republicans&rsquo; hypocritical resolution to nullify @USDOL&rsquo;s ESG rule ties investors&rsquo; hands &amp; would force their extremist views on investors. Thankfully, @POTUS will veto to protect retirees&rsquo; freedom to invest savings where they want,&rdquo; Sen.&nbsp;Elizabeth Warren&nbsp;((D-Mass.) wrote on Twitter Thursday.
Republicans, led by&nbsp;Rep. Andy Barr (R-KY)&nbsp;who introduced the bill, voted 50-46 to end the ESG rule, aided by moderate Democrats Jon Tester of Montana and Joe Manchin of West Virginia, <a href="https://www.bloomberg.com/news/articles/2023-03-01/republicans-anti-esg-bill-on-track-to-pass-senate-prompt-biden-veto#xj4y7vzkg">according</a> to Bloomberg.
What Is ESG:&nbsp;ESG investing allows for social and environmental considerations to be weighed when creating or adjusting an investment portfolio, as opposed to only considering financial factors in investment decisions, <a href="https://www.forbes.com/sites/anthonytellez/2023/02/28/what-is-esg-investing-and-why-republicans-are-trying-to-ban-it-from-retirement-funds/?sh=1d5f615674e1">according</a> to Forbes.
When ESG investing, portfolio managers may choose to steer away from fossil fuel or weaponry and ammunition stocks and instead, move toward companies that are environmentally and socially responsible.
Republicans against the rule say ESG investing would allow fund managers to place priority on their own beliefs rather than looking out for the best financial returns for retirees.
The Department of Labor, in contrast, believes the environment and social factors should be taken into consideration to determine risk in order to protect long-term investments.
What&#39;s Going On With ESG ETFs: Many ESG ETFs, which focus on tracking stocks with positive environmental, social and governance impacts, declined in February after Republicans started to speak out against Biden&rsquo;s rule, which came into effect on Jan. 30. If Biden follows through and vetoes Wednesday&rsquo;s bill, those same ESG ETFs could see an upside.
Three ESG ETFs To Consider:
&bull; iShares ESG Aware MSCI USA ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/esgu#NYSE">ESGU</a>) was trading up&nbsp;about 0.84% on Thursday and&nbsp;is up 3.28% year-to-date. The <a href="https://www.ishares.com/us/products/286007/ishares-esg-msci-usa-etf-fund">fund&#39;s</a> top three holdings are Apple, Microsoft and Amazon.
&bull; Schwab U.S. Dividend Equity ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/schd#NYSE">SCHD</a>) was trading up&nbsp;about 0.47% on Thursday and is down about 1.26% year-to-date. The <a href="https://www.etf.com/SCHD#fit">fund&#39;s</a> top three holdings are Broadcom, Verizon and Cisco Systems.
&bull; Goldman Sachs Future Real Estate and Infrastructure Equity ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/grei#NYSE">GREI</a>) was trading up 0.56% and&nbsp;is up 3.12% this year. The <a href="https://www.etf.com/GREI#fit">fund&#39;s</a> top three holdings are Prologis, Transurban Group and National Grid.
Read Next:&nbsp;<a href="https://www.benzinga.com/general/politics/23/03/31139590/ron-desantis-memoir-not-big-or-beautiful-reads-like-a-politicians-memoir-churned-out-by-chatgpt-">Ron DeSantis Memoir Not Big Or Beautiful: &#39;Reads Like It Was Churned Out By ChatGPT&#39; Says Critic</a>

Financial Advisors

Personal Finance

ESGU

GREI

Biden's ESG Rule, Termed 'Woke' By Republicans, Overturned By US Senate Bill; Biden To Veto

Investing in an exchange-traded fund that invests in large cap dividend stocks can be a great way to secure passive income.
Additionally, investing in such an ETF will allow&nbsp;diversification of&nbsp;a portfolio so it&nbsp;becomes more <a href="https://www.benzinga.com/markets/asia/22/09/29104159/as-the-spread-between-the-dividend-yields-and-bond-yields-widens-to-levels-unseen-since-2011-these-2">immune to unsystematic risk.</a>&nbsp;This type of risk&nbsp;is unique to a specific company or industry and can be mitigated&nbsp;through diversification.
Systematic risk on the other hand is a type of risk that impacts the broader market&nbsp;and can be mitigated by investing in international markets, but cannot be completely eliminated.
Check out&nbsp;two dividend ETFs that can&nbsp;help with unsystematic risk.
Also Read:&nbsp;<a href="https://www.benzinga.com/news/large-cap/22/09/28763841/invest-with-these-2-high-yielding-dividend-etfs-for-an-easier-diversified-strategy">2 High-Yielding Dividend ETFs That May Help Diversify Your Investment Strategy</a>
Schwab US Dividend Equity ETF (ARCA: SCHD) is offering a dividend yield of 3.23% or $2.48 per share annually, making quarterly payments, with a solid track record of increasing its dividends for nine consecutive years.
The goal of Schwab US Dividend Equity ETF is to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Dividend 100 Index.
The Schwab US Dividend Equity ETF&rsquo;s top three holdings include Merck &amp; Co Inc&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mrk#NYSE">MRK</a>) 4.32%, Pfizer Inc.&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pfe#NYSE">PFE</a>) 4.14%, and PepsiCo, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/pep#NASDAQ">PEP</a>) 4.11%, as of Sept. 30, 2022.
<a href="https://www.benzinga.com/money/vanguard-review/">Vanguard</a> High Dividend Yield ETF (ARCA: VYM) is offering a dividend yield of 2.92% or $3.22 per share annually, through quarterly payments, with a strong track record of increasing its dividends for 11 consecutive years.
Vanguard High Dividend Yield ETF seeks to track the performance of the FTSE High Dividend Yield Index, which measures the investment return of common stocks of companies characterized by high dividend yields.
The Vanguard High Dividend Yield ETF&rsquo;s top three holdings include Johnson &amp; Johnson (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jnj#NYSE">JNJ</a>) 3.44%, Exxon Mobil Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xom#NYSE">XOM</a>) 2.92% and JPMorgan Chase &amp; Co&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jpm#NYSE">JPM</a>) 2.44%, <a href="https://www.benzinga.com/news/large-cap/22/11/29505353/jpmorgan-jumps-into-healthcare-space-as-vc-funding-slows-valuations-fall">as of Sept. 30, 2022</a>.
See Also:&nbsp;<a href="https://www.benzinga.com/general/entertainment/22/11/29684333/as-cathie-woods-ark-etf-surges-these-7-stocks-in-the-fund-are-up-over-20-in-5-days">As Cathie Wood&#39;s ARK ETF Surges, These 7 Stocks In The Fund Are Up Over 20% In 5 Days</a>
Photo: Shutterstock
&nbsp;

Long Ideas

These 2 Dividend Paying ETFs Have A Track Record For Increasing Payments, Can Help Diversify Against Industry Risk

Volatility and uncertainty surrounding global economic growth and rising yields have made investors defensive. This has increased the appeal for products that provide safety and stability in a rocky market.
Dividend-focused products offer both safety in the form of payouts and stability in the form of mature companies that are less volatile to the large swings in stock prices. The dividend-paying securities are the major sources of consistent income for investors when returns from equity markets are at risk. Further, these products are proven outperformers over the long-term.
While there are plenty of options in the dividend ETF world, honing in on the &quot;dividend aristocrats&quot;&nbsp;could be the most beneficial way to ride out the current market volatility, resulting from political and geopolitical worries.<iframe allow="autoplay; encrypted-media" frameborder="0" height="315" src="https://www.youtube.com/embed/GpC1-r4xYsQ?rel=0" width="560"></iframe>
<h3>Why Dividend Aristocrats?</h3>
Dividend aristocrats are&nbsp;blue-chip dividend-paying companies, which have a long history of raising dividend payments each year. These generally act as a hedge against economic uncertainty and provide downside protection by offering outsized payouts or sizable yields on a regular basis. Additionally, aristocrats tend to skew the portfolio to less volatile sectors and mature companies.
Investors should note that the dividend aristocrat funds offer more dividend growth opportunities when compared to the other products in the space but might not necessarily have the highest yields. Further, these products lead to a healthy portfolio with a greater scope of capital appreciation as opposed to simple dividend paying stocks or those with high yields.
As a result, these products provide a nice combination of annual dividend growth and capital appreciation opportunity and are mainly suitable for risk adverse long-term investors. For them, we have highlighted some popular ETFs that could be excellent choices:
Vanguard Dividend Appreciation ETF&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/vig#NASDAQ">VIG</a>)
This is the largest and most-popular ETF in the dividend space with AUM of $28.9 billion and average daily volume of about 596,000 shares. The fund follows the NASDAQ US Dividend Achievers Select Index, which is composed of high quality stocks that have a record of raising dividend every year. It holds 182 securities in the basket, with none accounting for more than 4.5% share. The fund charges 8 bps in annual fees.
iShares Select Dividend ETF&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/dvy#NASDAQ">DVY</a>)
This fund provides exposure to the companies with a consistent 5-year history of dividend payments. It follows the Dow Jones U.S. Select Dividend Index and holds 98 securities in its basket with each accounting for less than 2.6% of assets. The ETF has AUM of $16.7 billion and average daily volume of more than 489,000 shares. It charges 39 bps in fees per year from investors.
SPDR S&amp;P Dividend ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/sdy#NYSE">SDY</a>)&nbsp;
With AUM of $15.4 billion and average daily volume of 377,000 shares, this fund provides a well-diversified exposure to 111 U.S. stocks that have been consistently increasing their dividends every year for at least 20 years. This can be done by tracking the S&amp;P High Yield Dividend Aristocrats Index. Each firm accounts for less than 2.5% of assets. The fund charges 35 bps in fees.
Schwab U.S. Dividend Equity ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/schd#NYSE">SCHD</a>)
With AUM of $7.8 billion, this product offers exposure to 108 high-dividend yielding U.S. companies that have a record of consistent dividend payments supported by fundamental strength based on financial ratios and ample liquidity. This can be easily done by tracking the Dow Jones U.S. Dividend 100 Index. The fund is well spread across components, with none holding more than 4.8% of assets. It charges 7 bps in annual fees and trades in solid volume of around 758,000 shares a day.
Related Links:
<a href="https://www.benzinga.com/news/18/07/12084608/what-it-takes-to-be-a-dividend-king">What It Takes To Be A Dividend King</a>
<a href="https://www.benzinga.com/trading-ideas/long-ideas/18/03/11429074/a-new-aristocrats-etf-with-added-income">A New Aristocrats ETF With Added Income</a>

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