In this article, we discuss 5 best dividend ETFs. If you want to read our detailed analysis of dividend stocks and exchange-traded funds, and their performance, go directly to read 10 Best Dividend ETFs.
5. Invesco FTSE RAFI US 1000 ETF (NYSE:PRF)
Year-to-Date Returns as of September 11: 6.33%
Invesco FTSE RAFI US 1000 ETF (NYSE:PRF) is next on our list of the best dividend ETFs with a year-to-date return of 6.33%, as of September 11. The exchange-traded fund seeks the performance of the FTSE RAFI US 1000 Index, which is designed to provide exposure to U.S. large-cap stocks based on fundamental factors rather than market capitalization. The ETF strives to achieve returns that align with this index.
Apple Inc. (NASDAQ:AAPL) is one of the largest holdings of Invesco FTSE RAFI US 1000 ETF (NYSE:PRF), accounting for 2.57% of the fund’s portfolio. The tech giant has been raising its dividends consistently for the past 11 years and currently pays a quarterly dividend of $0.24 per share and has a dividend yield of 0.54%, as of September 11.
As of the end of Q2 2023, 135 hedge funds tracked by Insider Monkey reported having stakes in Apple Inc. (NASDAQ:AAPL), up from 131 in the previous quarter. The collective value of these stakes is over $194 billion.
4. Vanguard Dividend Appreciation Index Fund (NYSE:VIG)
Year-to-Date Returns as of September 11: 6.34%
Vanguard Dividend Appreciation Index Fund (NYSE:VIG) tracks the performance of companies that have strong histories of raising their dividends. The fund provides diversification benefits by holding a basket of dividend-growth stocks from various sectors and industries within the U.S. equity market.
Microsoft Corporation (NASDAQ:MSFT), UnitedHealth Group Incorporated (NYSE:UNH), and JPMorgan Chase & Co. (NYSE:JPM) are some of the most prominent holdings of Vanguard Dividend Appreciation Index Fund (NYSE:VIG). These companies have histories of consistently raising their dividends over time.
3. ProShares MSCI Europe Dividend Growers ETF (BATS:EUDV)
Year-to-Date Returns as of September 11: 6.55%
ProShares MSCI Europe Dividend Growers ETF (BATS:EUDV) seeks to provide investors with exposure to European companies that have a history of consistently increasing their dividend payments over time. Since the start of 2023, the fund delivered a 6.55% return to shareholders, which makes it one of the best dividend ETFs on our list.
As of July 31, ProShares MSCI Europe Dividend Growers ETF (BATS:EUDV) has invested in 38 companies and its net expense ratio came in at 0.55%. One of the fund’s most prominent holdings is Diageo plc (NYSE:DEO), which is a British multinational beverage alcohol company. It currently pays a semi-annual dividend of $2.5088 per share and has a dividend yield of 2.52%, as recorded on September 11.
The number of hedge funds tracked by Insider Monkey owning stakes in Diageo plc (NYSE:DEO) stood at 25 in Q2 2023, growing from 23 in the previous quarter. The collective value of these stakes is over $428.6 million. Warren Buffett’s Berkshire Hathaway was one of the company’s leading stakeholders in Q2.
2. Strive 1000 Dividend Growth ETF (NASDAQ:STXD)
Year-to-Date Returns as of September 11: 7.79%
Strive 1000 Dividend Growth ETF (NASDAQ:STXD) is a passively managed exchange-traded fund that mainly invests in companies with consistent years of dividend growth. The fund was launched last year in October and has over $26 million in assets under management.
The Procter & Gamble Company (NYSE:PG), Johnson & Johnson (NYSE:JNJ), and Eli Lilly and Company (NYSE:LLY) are some of the most prominent holdings of the fund. Since the start of 2023, the fund has delivered a 7.79% to shareholders, which places it as one of the best dividend ETFs on our list.
1. Fidelity High Dividend ETF (NYSE:FDVV)
Year-to-Date Returns as of September 11: 8.08%
Fidelity High Dividend ETF (NYSE:FDVV) seeks to provide investment results that correspond to the performance of the Fidelity High Dividend Index. This index is designed to reflect the performance of U.S. large- and mid-capitalization high-dividend-paying stocks. The fund tops our list of the best dividend ETFs with, returning 8.08% year-to-date, as of September 11.
You can also take a look at 10 Fastest Growing AI Stocks To Buy and Warren Buffett Dividend Stocks by Sectors and Industries
