This ETF Hogs Yield
CVY's price-to-earnings ratio is 11.13, compared to 14.71 for DVY; its price-to-book of 1.68 is also lower than DVY's 2.62. I might take this data with a grain or two of salt because of some of the unusual holdings in CVY.
In addition, the betas are very similar: 0.87 for CVY and 0.85 for DVY. Finally, according to the Claymore literature, CVY's standard deviation (also a measure of volatility, where a lower number indicates less volatility) of 12.52 is slightly lower than DVY's 12.72.
For investors willing to include a dividend ETF in their large-cap allocation as a way of introducing yield, this fund has the potential of being a better mousetrap.I would not, however, buy the Yield Hog just yet. In general, I like to give something a few months of trading to get a feel for what it will do on a day-to-day basis. At a minimum, this fund merits serious consideration.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts