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Dividend factor ETFs

Since 1926, dividends have contributed nearly a third of total equity return while capital gains have contributed two-thirds. So dividend investing has become very popular. A dividend ETF is a so-called "smart beta" ETF that follows an index that intentionally selects stocks with high dividend yields, and/or weights the stocks it is holding, based on each stock's dividend yield (rather than each stock's market capitalization).

Does dividend investing work?

What is the goal?

Dividend ETFs are not necessarily about outperforming the market. In low interest rate environment, dividend ETFs have soared in popularity partly because investors are looking for any kind of yield. Many dividend ETFs combine dividend strategies with low volatility strategies, under the theory that investors looking for yield also want stable, conservative companies with less volatility.

What factors do you get with a dividend ETF?

It is difficult to use academic research as a tool to analyze dividend yield ETFs because most factor investment academic research does not specifically address dividends as a factor by itself. There is research on low volatility investing, and value investing, but not a lot on dividend investing. The general consensus seems to be that by selecting dividend stocks, you are indirectly selecting value stocks and low volatility stocks.

How well do dividend ETFs perform?

Here's a screen of U.S. equity dividend ETFs:

NameSymbolLast priceCurrencyAUMExpense ratio, %Inception date
Vanguard Div Appreciation ETFARCX:VIG243.07USDApr 21, 2006
Vanguard High Dividend Yield ETFARCX:VYM164.25USDNov 10, 2006
RiverFront Dynamic US Dividend Advantage ETFARCX:RFDA73.63USDSep 28, 2016
WBI Power Factor High Dividend ETFARCX:WBIY38.95USDDec 22, 2016
Amplify CWP Enhanced Dividend Income ETFARCX:DIVO48.45USDDec 15, 2016
Cambria ETF Trust Cambria Emerging Shareholder Yield ETFBATS:EYLD48.91USDJul 14, 2016
Opus Small Cap Value ETFBATS:OSCV41.78USDJul 18, 2018
AAM S&P 500 High Dividend Value ETFARCX:SPDV41.60USDNov 29, 2017
Virtus WMC International Dividend ETFBATS:VWID38.48USDOct 12, 2017
Fidelity International High Dividend ETFARCX:FIDI29.23USDJan 25, 2018
Fidelity Dividend ETF for Rising RatesARCX:FDRR69.61USDSep 15, 2016
Fidelity High Dividend ETFARCX:FDVV63.22USDSep 15, 2016
First Trust S&P International Dividend Aristocrats ETFXNAS:FID23.13USDAug 23, 2013
First Trust Dorsey Wright Momentum & Dividend ETFXNAS:DDIV46.37USDMar 11, 2014
First Trust S&P 500 Diversified Dividend Aristocrats ETFXNAS:KNGZ42.61USDJun 26, 2017
First Trust Bloomberg Shareholder Yield ETFXNAS:SHRY48.20USDJun 22, 2017
First Trust SMID Cap Rising Dividend Achievers ETFXNAS:SDVY43.64USDNov 03, 2017
Franklin International Core Dividend Tilt Index ETFARCX:DIVI44.36USDJun 03, 2016
Global X S&P 500 Quality Dividend ETFARCX:QDIV40.85USDJul 13, 2018
Global X MSCI SuperDividend EAFE ETFXNAS:EFAS23.15USDNov 14, 2016
iShares Select Dividend ETFXNAS:DVY163.80USDNov 07, 2003
iShares International Dividend Growth ETFBATS:IGRO92.49USDMay 19, 2016
iShares iBonds Dec 2026 Term Muni Bond ETFBATS:IBMO25.63USDApr 04, 2019
iShares Core Dividend ETFBATS:DIVB69.11USDNov 09, 2017
Franklin International Low Volatility High Dividend Index ETF BATS:LVHI42.86USDJul 28, 2016
Western Asset Short Duration Income ETFXNAS:WINC24.22USDFeb 08, 2019
Invesco S&P SmallCap High Dividend Low Volatility ETFXNYS:XSHD14.39USDDec 01, 2016
SPDR S&P Emerging Markets Dividend ETFARCX:EDIV41.89USDFeb 23, 2011
SPDR SSGA Fixed Income Sector Rotation ETFARCX:FISR25.25USDApr 02, 2019
Timothy Plan High Dividend Stock ETFARCX:TPHD43.30USDMay 01, 2019
Anfield Universal Fixed Income ETFBATS:AFIF9.41USDOct 02, 2018
ETRACS Monthly Pay 2x Leveraged Small Cap High Dividend ETN Series BARCX:SMHB4.27USDNov 09, 2018
VanEck Durable High Dividend ETFBATS:DURA39.76USDOct 31, 2018
VictoryShares Dividend Accelerator ETFXNAS:VSDA60.07USDApr 18, 2017
VictoryShares US Small Cap High Div Volatility Wtd ETFXNAS:CSB66.77USDJul 29, 2015
WisdomTree International Quality Dividend Growth FundBATS:IQDG44.60USDApr 07, 2016
SPDR S&P Dividend ETFARCX:SDY157.50USDNov 08, 2005
First Trust VL DividendARCX:FVD50.50USDAug 27, 2003
First Trust Morningstar ETFARCX:FDL53.16USDMar 15, 2006
Invesco S&P International Developed Quality ETFXNYS:IDHQ28.83USDJun 13, 2007
First Trust Dow Jones STOXX Select Dividend 30 Index FundARCX:FDD20.47USDAug 30, 2007
WisdomTree U.S. SmallCap Dividend FundARCX:DES40.42USDJun 16, 2006
WisdomTree Global High Dividend FundARCX:DEW72.11USDJun 16, 2006
WisdomTree Europe SmallCap Dividend FundARCX:DFE77.86USDJun 16, 2006
WisdomTree U.S. High Dividend FundARCX:DHS118.21USDJun 16, 2006
WisdomTree International MidCap Dividend FundARCX:DIM89.50USDJun 16, 2006
WisdomTree U.S. LargeCap Dividend FundARCX:DLN100.61USDJun 16, 2006
WisdomTree International SmallCap FundARCX:DLS89.45USDJun 16, 2006
WisdomTree Global ex-US Quality Dividend Growth FundARCX:DNL46.58USDJun 16, 2006
WisdomTree International LargeCap Dividend FundARCX:DOL76.87USDJun 16, 2006
WisdomTree U.S. MidCap Dividend FundARCX:DON57.76USDJun 16, 2006
WisdomTree U.S. Total Dividend FundARCX:DTD96.96USDJun 16, 2006
WisdomTree International High Dividend FundARCX:DTH58.29USDJun 16, 2006
WisdomTree International Equity FundARCX:DWM76.35USDJun 16, 2006
iShares International Select Dividend ETFBATS:IDV44.65USDJun 21, 2007
WisdomTree Emerging Markets High Dividend FundARCX:DEM55.32USDJul 13, 2007
WisdomTree Emerging Market SmallCap FundARCX:DGS64.18USDOct 30, 2007
First Trust DJ Global Select DividendARCX:FGD35.63USDNov 27, 2007
SPDR S&P International Dividend ETFARCX:DWX47.73USDFeb 12, 2008
iShares Core High Dividend ETFARCX:HDV29.44USDMar 31, 2011
Schwab US Dividend Equity ETFARCX:SCHD34.90USDOct 20, 2011
iShares Asia / Pacific Dividend 30 Index Fund Exchange Traded FundARCX:DVYA51.90USDFeb 24, 2012
iShares Emerging Markets Dividend Index Fund Exchange Traded FundARCX:DVYE34.99USDFeb 24, 2012
ALPS Sector Dividend Dogs ETFARCX:SDOG73.57USDJun 29, 2012
First Trust NASDAQ Technology Dividend Index FundXNAS:TDIV115.76USDAug 14, 2012
FlexShares Morningstar Developed Markets ex-US Factor Tilt Index FundARCX:TLTD104.51USDOct 02, 2012
FlexShares Morningstar Emerging Markets Factor Tilt Index FundARCX:TLTE77.13USDOct 02, 2012
FlexShares Quality Dividend Index FundARCX:QDF92.24USDDec 19, 2012
FlexShares Quality Dividend Defensive Index FundARCX:QDEF91.27USDDec 19, 2012
Global X Super Dividend ETFARCX:DIV19.85USDMar 11, 2013
FlexShares International Quality Dividend Index FundARCX:IQDF35.79USDApr 16, 2013
FlexShares International Quality Dividend Defensive Index FundARCX:IQDE20.60USDApr 16, 2013
FlexShares International Quality Dividend Dynamic Index FundARCX:IQDY43.56USDApr 16, 2013
Cambria Shareholder Yield ETFBATS:SYLD86.35USDMay 14, 2013
WisdomTree U.S. Quality Dividend Growth FundXNAS:DGRW99.35USDMay 22, 2013
SPDR S&P Global DividendARCX:WDIV85.25USDMay 29, 2013
WisdomTree Japan Hedged SmallCap Equity FundXNAS:OPPJ57.86USDJun 28, 2013
ALPS International Sector Dividend Dogs ETFARCX:IDOG44.30USDJun 27, 2013
WisdomTree U.S. SmallCap Quality Dividend Growth FundXNAS:DGRS59.70USDJul 25, 2013
WisdomTree Emerging Markets Quality Dividend Growth FundXNAS:DGRE40.48USDAug 01, 2013
Schwab Fundamental U.S. Large Company ETFARCX:FNDX32.51USDAug 15, 2013
ProShares S&P 500 Dividend Aristocrats ETFBATS:NOBL58.34USDOct 10, 2013
First Trust Rising Dividend Achievers ETFXNAS:RDVY82.06USDJan 07, 2014
ALPS Emerging Sector Dividend Dogs ETFARCX:EDOG25.16USDMar 27, 2014
WisdomTree Europe Quality Dividend Growth FundARCX:EUDG40.02USDMay 07, 2014
WisdomTree International Hedged Quality Dividend Growth FundARCX:IHDG53.54USDMay 07, 2014
iShares Core Dividend Growth ETFARCX:DGRO79.36USDJun 12, 2014
VictoryShares US EQ Income Enhanced Volatility Wtd ETFXNAS:CDC76.88USDJul 02, 2014
ProShares Trust ProShares MSCI EAFE Dividend Growers ETFBATS:EFAD45.16USDAug 21, 2014
Roundhill Acquirers Deep Value ETFARCX:DEEP43.79USDSep 23, 2014
First Trust Dividend Strength ETFXNAS:FTDS66.46USDDec 23, 2014
ProShares Russell 2000 Dividend Growers ETFBATS:SMDV76.68USDFeb 05, 2015
ProShares S&P MidCap 400 Dividend Aristocrats ETFBATS:REGL93.59USDFeb 05, 2015
Global X Renewable Energy Producers ETFXNAS:RNRG34.28USDMay 27, 2015
VictoryShares US Large Cap High Div Volatility Wtd ETFXNAS:CDL80.22USDJul 08, 2015
Global X Alternative Income ETFXNAS:ALTY12.36USDJul 13, 2015
ProShares MSCI Europe Dividend Growers ETFBATS:EUDV55.59USDSep 11, 2015
SPDR Series Trust SPDR Portfolio S&P 500 High Dividend ETFARCX:SPYD50.01USDOct 21, 2015
ProShares MSCI Emerging Markets Dividend Growers ETFBATS:EMDV47.63USDJan 27, 2016
WisdomTree Dynamic Currency Hedged International Equity FundBATS:DDWM47.53USDFeb 04, 2016
Vanguard International High Dividend Yield ETFXNAS:VYMI105.08USDFeb 25, 2016
Vanguard International Dividend Appreciation ETFXNAS:VIGI98.57USDFeb 25, 2016
WisdomTree Japan SmallCap FundARCX:DFJ114.07USDJun 16, 2006
Xtrackers MSCI EAFE High Dividend Yield Equity ETFARCX:HDEF33.92USDAug 18, 2015
WisdomTree Dynamic Currency Hedged International SmallCap Equity FundBATS:DDLS46.39USDApr 26, 2016
Franklin U.S. Low Volatility High Dividend Index ETFXNAS:LVHD44.19USDDec 29, 2015
AAM Low Duration Preferred and Income Securities ETFARCX:PFLD19.51USDNov 20, 2019
Invesco India ETFARCX:IMVP20.03USDMar 05, 2008
Invesco Dividend Achievers ETFXNAS:PFM57.33USDSep 15, 2005
Invesco International Dividend Achievers ETFXNAS:PID22.73USDSep 15, 2005
Invesco High Yield Equity Dividend Achievers ETFXNAS:PEY25.13USDDec 09, 2004
Invesco Dow Jones Industrial Average Dividend ETFARCX:DJD66.17USDDec 16, 2015
Invesco FTSE RAFI US 1000 ETFARCX:PRF56.12USDDec 19, 2005
Invesco S&P 500 High Dividend Low Volatility ETFARCX:SPHD52.84USDOct 18, 2012
Invesco KBW Premium Yield Equity REIT ETFXNAS:KBWY18.07USDDec 02, 2010
Invesco KBW High Dividend Yield Financial ETFXNAS:KBWD12.50USDDec 02, 2010
Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETFARCX:PDN47.54USDSep 27, 2007
Invesco FTSE RAFI Developed Markets ex-U.S. ETFARCX:PXF79.38USDJun 25, 2007
Invesco Exchange-Traded Fund Trust II Invesco S&P Ultra Dividend Revenue ETFARCX:RDIV63.20USDSep 30, 2013
Invesco Variable Rate Preferred ETFARCX:VRP24.15USDMay 01, 2014
Invesco BulletShares 2029 Municipal Bond ETFXNAS:BSMT22.91USDSep 25, 2019
Invesco BulletShares 2028 Municipal Bond ETFXNAS:BSMS23.33USDSep 25, 2019
Invesco BulletShares 2027 Municipal Bond ETFXNAS:BSMR23.62USDSep 25, 2019
Invesco BulletShares 2026 Municipal Bond ETFXNAS:BSMQ23.53USDSep 25, 2019
Invesco BulletShares 2025 Municipal Bond ETFXNAS:BSMP24.49USDSep 25, 2019
INVESCO BULLETSHARES 2024 MUXNAS:BSMO24.88USDSep 25, 2019
Invesco BulletShares 2029 Corporate Bond ETFXNAS:BSCT18.47USDSep 12, 2019
iShares iBonds Dec 2029 Term Corporate ETFARCX:IBDU23.04USDSep 19, 2019
J.P. Morgan Exchange-Traded Fund Trust JPMorgan Dividend Leaders ETFXNYS:JDIVUSD
ClearBridge Dividend Strategy ESG ETFXNAS:YLDE57.79USDMay 26, 2017
Principal Value ETFXNAS:PY58.22USDMar 22, 2016
Schwab Long-Term U.S. Treasury ETFARCX:SCHQ30.17USDOct 11, 2019
Tidal ETF Trust SP Funds Dow Jones Global Sukuk ETFARCX:SPSK17.89USDDec 31, 2019
ETRACS Monthly Pay 2xLeveraged US High Dividend Low Volatility ETN Series B due September 30, 2044ARCX:HDLB17.94USDOct 30, 2019
WisdomTree Mortgage Plus Bond FundARCX:MTGP43.55USDDec 06, 2019
ALPS ETF Trust ALPS REIT Dividend Dogs ETFARCX:RDOG40.95USDMay 07, 2008
BetaShares Legg Mason Equity IncomeXASX:EINCAUD
Pacer Global Cash Cows Dividend ETFBATS:GCOW47.36USDFeb 23, 2016
ProShares Russell US Dividend Growers ETFBATS:TMDV53.32USDNov 07, 2019
ProShares S&P Technology Dividend Aristocrats ETFBATS:TDV101.91USDNov 07, 2019
ALPS O'Shares U.S. Quality Dividend ETFBATS:OUSA62.36USDJul 14, 2015
ALPS O'Shares U.S. Small-Cap Quality Dividend ETFBATS:OUSM49.28USDDec 30, 2016
ETF Series Solutions U.S. Global Sea to Sky Cargo ETFARCX:SEA19.76USDJan 20, 2022
FT Vest S&P 500 Dividend Aristocrats Target Income ETFBATS:KNG51.55USDMar 27, 2018
Global X SuperDividend ETFARCX:SDIV24.90USDJun 08, 2011
Global X MSCI SuperDividend Emerging Markets ETFARCX:SDEM33.45USDMar 16, 2015
Siren DIVCON Leaders Dividend ETFBATS:LEAD85.92USDJan 06, 2016
Sound Equity Dividend Income ETFXNYS:DIVY31.16USDJan 04, 2021
Siren DIVCON Dividend Defender ETFBATS:DFND43.22USDJan 20, 2016
AB Active ETFs, Inc. AB US High Dividend ETFARCX:HIDV92.86USDMar 28, 2023
Freedom Day Dividend ETFARCX:MBOX42.82USDMay 05, 2021
BNY Mellon Core Bond ETFARCX:BKAG41.33USDApr 24, 2020
Capital Group Core Equity ETFARCX:CGUS45.34USDFeb 24, 2022
Capital Group Dividend Value ETFARCX:CGDV50.36USDFeb 24, 2022
Hoya Capital High Dividend Yield ETFARCX:RIET9.42USDSep 22, 2021
Federated Hermes ETF Trust Federated Hermes U.S. Strategic Dividend ETFARCX:FDV33.57USDNov 16, 2022
Global X Emerging Markets Bond ETFARCX:EMBD23.59USDJun 01, 2020
SmartETFs Dividend Builder ETFARCX:DIVS34.77USDApr 01, 2021
SmartETFs Asia Pacific Dividend Builder ETFARCX:ADIV19.99USDMar 29, 2021
iShares iBonds Dec 2029 Term Treasury ETFXNAS:IBTJ21.53USDFeb 28, 2020
iShares iBonds Dec 2027 Term Treasury ETFXNAS:IBTH22.37USDFeb 28, 2020
iShares iBonds Dec 2026 Term Treasury ETFXNAS:IBTG22.89USDFeb 28, 2020
iShares iBonds Dec 2025 Term Treasury ETFXNAS:IBTF23.30USDFeb 28, 2020
iShares iBonds Dec 2024 Term Treasury ETFXNAS:IBTE23.87USDMar 03, 2020
JPMorgan Income ETFARCX:JPIE45.83USDNov 02, 2021
Listed Funds Trust Dividend Performers ETFBATS:IPDP20.52USDMar 07, 2022
Opal Dividend Income ETFARCX:DIVZ38.48USDJan 27, 2021
Nuveen ESG Dividend ETFBATS:NUDV34.17USDSep 28, 2021
Nuveen Dividend Growth ETFARCX:NDVG33.68USDAug 05, 2021
Pacer Metaurus US Large Cap Dividend Multiplier 400 ETFARCX:QDPL46.50USDJul 27, 2021
Principal Spectrum Tax-Advantaged Dividend Active ETFARCX:PQDI19.26USDJun 17, 2020
Schwab International Dividend Equity ETFARCX:SCHY33.20USDApr 29, 2021
T. Rowe Price Dividend Growth ETFARCX:TDVG50.08USDAug 05, 2020
Timothy Plan High Dividend Stock Enhanced ETFARCX:TPHE26.16USDJul 30, 2021
Touchstone ETF Trust Touchstone Dividend Select ETFARCX:DVND39.67USDAug 05, 2022
UBS AG ETRACS Alerian Midstream Energy High Dividend Index ETNARCX:AMND53.54USDJul 23, 2020
USCF ETF Trust USCF Dividend Income FundARCX:UDI37.24USDJun 08, 2022
Amplify CWP International Enhanced Dividend Income ETFARCX:IDVO42.80USDSep 08, 2022
Amplify ETF Trust Amplify Natural Resources Dividend Income ETFARCX:NDIV34.99USDAug 24, 2022
Harbor ETF Trust Harbor Dividend Growth Leaders ETFXNYS:GDIV19.01USDMay 23, 2022
Litman Gregory Funds Trust IMGP Berkshire Dividend Growth ETFARCX:BDVG15.02USDJun 30, 2023
Amplify Cash Flow Dividend Leaders ETFXNAS:COWS40.44USDSep 13, 2023
MarketDesk Focused U.S. Dividend ETFXNAS:FDIV28.45USDAug 13, 2014
Matthews International Funds Matthews Asia Dividend Active ETFARCX:ADVE46.54USDSep 18, 2014
Columbia International Equity Income ETFARCX:INEQ41.91USD
Columbia U.S. Equity Income ETFARCX:EQIN54.23USD
ALPS OShares Europe Quality Dividend ETFBATS:OEFA36.44USD
NEOS ETF Trust NEOS Nasdaq-100 Hedged Equity Income ETFXNAS:NUSI49.45USD