By: Dividend Sensei
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.