Published Thu, 10 Dec 2020 17:44:16 -0500 on Seeking Alpha
Seeking AlphaETF AnalysisDividend ETF Review: DHSDec. 10, 2020 5:44 PM ET|| About: WisdomTree U.S. High Dividend Fund (DHS), Includes: FVDby: Fred PiardFred Piard Quantitative Risk & ValueExclusive market risk indicator paired with data-driven model portfolios.SummaryDHS strategy and performance.
Comparing DHS with simple strategies.
Scanning DHS with quality metrics.
DHS strategy and performance
The WisdomTree U.S. High Dividend Fund (DHS) tracks the WisdomTree U.S. High Dividend Index, which is a quantitative strategy following systematic rules. The SEC Yield of DHS is currently 4.06%.
As described on the WisdomTree website:
The index is dividend weighted annually to reflect the proportionate share of the aggregate cash dividends each component company is projected to pay in the coming year, based on the most recently declared dividend per share and adjusted for a company's composite risk score. Composite risk score is an average of three factors: value, quality and momentum.
Since inception (06/16/2006), DHS has underperformed SPY in total return. It also shows a higher risk measured in drawdown and the standard deviation of monthly return ("volatility").
The next chart plots the equity value of $100 invested in DHS and SPY since DHS inception.
Comparing DHS with simple strategies
Previous articles show how three factors may help cut the risk in a dividend portfolio: Return on Assets, Piotroski F-score, and Altman Z-score.
The next table compares DHS since inception with three subsets of the S&P 500: stocks with an above-average yield and an above-average ROA, stocks with an above-average yield and a good Altman Z-score (cutoff 1.81), stocks with an above-average yield and a good Piotroski F-score (6 or above).... Read more
Older articles featuring Fvd (FVD):Dividend Offense, Dividend Defense: This ETF Strategy Systematically Avoids Dividend Risks (Podcast Transcript)
Dividend Offense, Dividend Defense: This ETF Strategy Systematically Avoids Dividend Risks (Podcast)
Dividend Investing In A Volatile Market
Dividend ETFs: Anomalies Are Great, So Long As They Aren't Mirages
Performance Of Dividend ETFs During The Crash
The Best ETF For Dividend Growth Investors
WisdomTree U.S. Large Cap Dividend ETF: Favorable Outlook Continues
Dividends By The Numbers In July 2019
Income Investing And The Changing Yield Curve
Value And Dividend Fund Performance During Bear Markets