So much for stodgy, slow-moving dividend stocks.
Of nearly 50 dividend-focused exchange traded funds, 18 are
outperforming the S&P 500 this year.
TheSPDR S&P Dividend (
) ETF, which mirrors the S&P High Yield Dividend Aristocrats
Index, was up nearly 20% from Jan. 1 to Wednesday's close. The
S&P 500, by comparison, was up 16.3%.
The Dividend Aristocrats fund is the largest dividend ETF by
market value. Its holdings include some of the most trusted
dividend providers, such asConsolidated Edison (
),Johnson & Johnson (
) andCoca Cola (
But it's not the best performer.
A look at the dividend
and exchange traded notes in IBD's database finds thatWisdomTree
Japan Hedged Equity (
) has soared nearly 40%. The fund -- which offsets the yen risk
-- has benefited from a strong Nikkei since a major stimulus plan
was announced. Mitsubishi UFJ Financial Group, Nomura Holdings
and the Japanese automakers are some of its largest holdings.
That's a sharp contrast to other foreign dividend ETFs, which
by and large are lagging.
The bottom of the year-to-date performance table shows
WisdomTree China Dividend Ex-Financials (CHXF) (down about
7%),iShares Emerging Markets Dividend (DVYE) (down 5%) andSPDR
S&P Emerging Markets Dividend (EDIV) (down 4%).
No doubt, that's a reflection of relative weakness in most
major emerging markets.
Another big gainer this year isALPS Sector Dividend Dogs
(SDOG), which follows the "dogs of the Dow" investment strategy.
It's up about 20%.
The original strategy involves buying the 10 stocks with the
highest dividend yields in the 30-stock Dow. But ALPS uses the
S&P 500 as its starting point.