In this piece, we will take a look at the five best large cap value ETFs. If you want to take a deeper look at our introduction to large cap stocks, then check out 12 Best Large-Cap Value ETFs.
5. iShares Core Dividend Growth ETF (NYSE:DGRO)
5 Year Returns: 9.24%
iShares Core Dividend Growth ETF (NYSE:DGRO) is an ETF that purely focuses on dividend paying stocks. It is a large ETF with $24 billion in net assets and was set up in 2014. The firm’s net annual expense ratio and its turnover both lag the category averages. More than 99% of the portfolio is invested in stocks, and financial services, healthcare, and technology stocks account for more than half of the portfolio.
4. SPDR Portfolio S&P 500 Value ETF (NYSE:SPYV)
5 Year Returns: 9.31%
SPDR Portfolio S&P 500 Value ETF (NYSE:SPYV) is part of the SPDR State Street Global Advisors fund family. It has $16.6 billion in net assets and was set up in 2000. Like some other ETFs on our list, the SPDR Portfolio S&P 500 Value ETF (NYSE:SPYV) also tracks the S&P500 Value Index. The fund’s investment objectives align with those of value investing since it invests in companies that can be undervalued compared to their latest share price.
3. Schwab U.S. Dividend Equity ETF (NYSE:SCHD)
5 Year Returns: 10.25%
Schwab U.S. Dividend Equity ETF (NYSE:SCHD) is the largest large cap value ETF on our list in terms of net assets. Part of the Schwab ETFs fund family, it has net assets that are worth a whopping $49.6 billion. The fund was set up in 2011, and its price to trailing earnings ratio is 14.10. Some top investments of the Schwab U.S. Dividend Equity ETF (NYSE:SCHD) are Cisco Systems, Inc. (NASDAQ:CSCO), Broadcom Inc. (NASDAQ:AVGO), and Amgen Inc. (NASDAQ:AMGN).
2. Schwab Fundamental U.S. Large Company Index ETF (NYSE:FNDX)
5 Year Returns: 10.28%
Schwab Fundamental U.S. Large Company Index ETF (NYSE:FNDX) is another fund part of the Schwab fund family but one with considerably fewer net assets. The latest data shows that these currently stand at $12.1 billion. The ETF also tracks the RAFI Large Company Index and it was set up in 2013. The ETF is a passively managed fund and most of its holdings are concentrated in the financial services, healthcare, industrials, and technology sectors. The Schwab Fundamental U.S. Large Company Index ETF (NYSE:FNDX)’s notable large cap investments are in Intel Corporation (NASDAQ:INTC) and AT&T Inc. (NYSE:T).
1. First Trust Rising Dividend Achievers ETF (NASDAQ:RDVY)
5 Year Returns: 10.49%
First Trust Rising Dividend Achievers ETF (NASDAQ:RDVY) is a mid sized large cap value ETF. It has $8.2 billion in assets and is part of the First Trust fund family. The ETF was set up in 2014 and nearly 40% of its investments are concentrated in the financial services sector. As part of the selection criteria, not only does the First Trust Rising Dividend Achievers ETF (NASDAQ:RDVY) focus on firm that are currently paying dividends, but it also analyzes their financial metrics such as the cash flow to determine if they will be able to increase dividends in the future.
Disclosure: None. You can also take a look at 10 Stocks That Could 10X Over the Next 10 Years and Goldman Sachs China Stocks: Top 10 Stock Picks.
