5 Overlooked Dividend ETFs Worth Buying Now

The fund is widely diversified across various securities, each accounting for less than 4.2% share. From a sector look, about one-fourth of the portfolio is dominated by consumer staples, while industrials (13.5%), energy (11.4%), and information technology (10.7%) round off the next three spots. PFM is down 1.9% so far this year and has an annual dividend yield of 2.13%. The fund has a Zacks ETF Rank of 3 with a Medium risk outlook.

FlexShares Quality Dividend Defensive Index Fund ((QDEF - ETF report))

With AUM of $192 million, the product fund follows the Northern Trust Quality Dividend Defensive Index, which offers exposure to a high-quality income-oriented portfolio of U.S. stocks with an emphasis on long-term capital growth and a beta higher than the Northern Trust 1250 Index. In total, the fund holds 197 stocks in its basket that are well spread out across securities with none holding more than 4.04% of assets (read: High Quality Stocks, ETFs to Beat the Market).

In terms of sector holdings, financials, information technology, consumer staples, consumer discretionary and health care are the top five sectors. QDEF trades in a paltry volume of about 17,000 shares while charges 37 bps in expense ratio. The fund has gained 1.8% in the year-to-date timeframe and has a good dividend yield of 2.50% per annum.

Global X SuperDividend U.S. ETF ((DIV - ETF report))

This fund provides exposure to the highest dividend yielding U.S. securities by tracking the INDXX SuperDividend U.S. Low Volatility Index. It has amassed $285.2 million in its asset base while trades in moderate volume of about 94,000 shares. The ETF charges 45 bps in fees per year from investors.

Holding 51 securities in its basket, the product is widely diversified across each component as none of these holds more than 2.65% of assets. However, utilities accounts for one-fourth of the portfolio, closely followed by real estate (23%), energy (13%) and consumer staples (12%). The product has a high annual dividend yield of 7.14% and is down about 7% so far this year. It has a Zacks ETF Rank of 3 with a Medium risk outlook (read: 5 Red Hot Dividend ETFs Yielding 5% or More).   

Guggenheim S&P Global Dividend Opportunities Index ETF ((LVL - ETF report))

For investors seeking global exposure, LVL seems an intriguing pick. This fund follows the S&P Global Dividend Opportunities Index, holding 99 securities in its basket. It is well diversified across components as each security holds no more than 3.3% share. From a sector look, energy and financials take the top two spots with 27.3% and 22.1% share, respectively.

In terms of country exposure, the U.S., Canada, Australia and United Kingdom make up for the top four countries with double-digit exposure each. The ETF has accumulated just $65.5 million in AUM and sees light average daily volume of less than 28,000 shares. It charges 65 bps in fees per year from investors and has an impressive yield of 7.05% per annum. The fund has lost 10.6% in the year-to-date timeframe.

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