Investors poured into SDIV during its opening days of trading, but in following months the fund's popularity waned. Since early August, it has failed to see its daily volume top 50,000.
We suspect the scant interest in SDIV is because of investor hesitance about the global marketplace. Turbulent action facing regions like the EU has weighed heavily on the fund's performance. During the past three months, shares of SDIV have dipped close to 20%.
In the cutthroat ETF universe, only the strongest funds survive. Although we have seen a taste of what can be expected from these two dividend newcomers, HDV and SDIV are still young. I would encourage investors to continue to keep a watch over them in the near future to find out whether they can cement their places in this industry.
-- Written by Don Dion in Williamstown, Mass.At the time of publication, Dion Money Management owned DVY.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
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
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV