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A Potentially Excellent Dividend ETF You Should Consider

Posted On July 20, 2017 10:47 pm
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Recently I highlighted on of the few dividend ETFs that I own, and consider the gold standard of ETFs.

That’s due to its multi-factor approach to what’s known as “smart beta”, meaning a portfolio composition method designed to beat the market’s already impressive 9.1% annual total returns since 1871.

Specifically those include: high-yield, consistent dividend growth, and low volatility.

However, recently PowerShares launched a new smart beta dividend ETF that I believe has the potential for even better total returns, the S&P Small Cap High Dividend, Low Volatility ETF (XSHD).

This ETF builds on the proven ability of low volatility, high-yield dividend growth stocks to compound wealth and income over time, by adding a small cap component, because historically smaller companies tend to outperform larger ones over time.

Let’s take a closer look at why, despite being a passionate, and talented stock picker, I like this ETF enough to include it in my own real money portfolio.

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About author

Dividend Sensei
Dividend Sensei

I’m an Army veteran and former energy dividend writer for The Motley Fool. I currently write for both Seeking Alpha, Simply Safe Dividends, Investorplace.com, and TheStreet.com.

My goal is to help all people learn how to harness the awesome power of dividend growth investing to achieve their financial dreams, and enrich their lives. With 20 years of investing experience, I’ve learned what works and more importantly, what doesn’t, when it comes to building long-term wealth and income streams. I’m currently on an epic quest to build a broadly diversified, high-quality, high-yield dividend growth portfolio that:

1. Pays a 4% to 5% yield
2. Offers 9% to 10% annual dividend growth
3. Pays dividends AT LEAST on a weekly, but preferably, daily basis