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HDV High Dividend ETF Dropping To An Intermediate Low

Published Thu, 23 May 2019 12:46:52 -0400 on Seeking Alpha

Warren Buffet has stated many times that his recommendation for long-term investors is to buy a fund or ETF which tracks the market. There is a lot of wisdom to this strategy. First, one does not have to invest time into picking stocks. Many investors do not beat the market with their stock picks every year. Furthermore, on top of this (which is rarely spoken about), the time spent on picking stocks could have been profitably invested elsewhere.
On the trading side, another big advantage of ETFs is that one does not have quarterly earnings announcements (which one would have if one was holding individual stocks). For option sellers, for example, this is a big advantage as one can simply sell options (when volatility is on the high side of its range) and wait for volatility to subside to its average. This means a liquid ETF should have more trading opportunities which are always beneficial for an experienced trader.
For income derived investors, a popular ETF is the iShares Core High Dividend ETF (HDV). This instrument has net assets of $7.18 billion and a yield of 3.27%. Let's go through the make-up of this ETF from its holdings to how its technical chart looks at present.
If we go to the three-year technical chart, we can see that shares look to rolling over at present. We have a weekly swing high, the technicals remain overbought and we have divergences on the RSI indicator. Furthermore, iShares Core High Dividend ETF bottomed out at the same time as the S&P on... Read more