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Dividend Growth ETF Overlap

Published Wed, 05 Jun 2019 05:39:08 -0400 on Seeking Alpha

I was thinking the other day about the fact that most non-US investors are, for regulatory purposes, prevented from investing directly into US funds (including ETFs), whereas they are completely free to invest directly into individually listed US shares of stock. Interest in dividend growth investing is global, so you could see how dividend growth ETFs would have a natural appeal to investors both within and outside of the USA.
So why not just cut out the middle man? Track the holdings of the top dividend growth ETFs, and cherry pick out all the individual stocks each of the funds hold. Surely, there must be a ton of overlap between what each of these funds holds, so why own four, five or more big dividend growth funds when they're probably interchangeable to a large degree? But when I looked through the fund holdings and drew a cross fund comparison, what I found surprised me. There is far less overlap than I assumed.
Before I get to the list of stocks owned by the various large US dividend ETFs, I'm going to give a bit of background info. Now, the next few paragraphs are not illuminating for people who are already well versed in the area, and will be obnoxiously repetitive to no small number of readers. You can skip the Appetizer and dive straight into the "Main Entree" section, knife and fork at the ready, salivating, and eyes bulging with anticipation.
Appetizer Look at four of the largest dividend growth ETFs in the USA - Vanguard's Dividend Appreciation Fund (VIG),... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
ISHARES DOW JONES SELECT DIVIDEND INDEX FUND 103.22   0.0 0.00 3.37 3.31
SPDR S&P DIVIDEND ETF 103.80   0.0 0.00 2.42 2.36
VANGUARD DIVIDEND APPRECIATION ETF 120.84   0.0 0.00 0.00 1.58

ISHARES DOW JONES SELECT DIVIDEND INDEX FUND - DVY
ISHARES DOW JONES SELECT DIVIDEND INDEX FUND - DVY  


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