What has happened to the dividend ETFs recently? Take DVY as an example. Since mid year it has massively underperformed SPY. The first image above shows DVY and SPY for the last three years. I looked up DVY at ETFConnect and found that DVY has a 38% weighting in the financial sector. The SPY only has about an 18% weighting. That is how a 'conservative' dividend fund can have surprisingly bad performance. The second image above shows SPY and XLF (financial sector) for the last three years.
The moral of the story is to be aware of the composition of ETFs and the indicies that they are based on. You may not be getting the exposure or diversification that you bargained on.
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