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Dividend ETF Shuffle

Rather than leaning towards these non-cyclical sectors, VIG homes in on the consumer and market-correlated sectors. Industrials, which account for less than 4% of HDV's index, represent nearly a quarter of the fund's portfolio.

All four of the options listed above are appropriate for investors looking to maintain exposure to the equity markets while earning consistent income, but it is clear that funds like HDV and VIG are best-suited for different risk tolerances and investing environments.

In this current market, investors may be tempted to unload their exposure to any and all yield-bearing equities in order to make room for riskier holdings. Before abandoning this corner of the equity markets entirely, however, make sure to take a look at which fund you are using for representation; sometimes, by simply transitioning to a fund like VIG from DVY, it is possible to capture some of the sought-after upside potential without having to take on an excessive amount of additional risk.

Written by Don Dion in Williamstown, Mass.

At the time of publication, Dion Money Management owned the iShares Dow Jones U.S. Dividend Select Index Fund.
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SYM TRADE IT LAST %CHG
HDV $76.71 -1.00%
SPY $209.02 -1.10%
DVY $77.87 -1.30%
SDY $77.63 -1.20%
VIG $80.52 -1.00%

Markets

DOW 17,928.20 -142.20 -0.79%
S&P 500 2,089.46 -25.03 -1.18%
NASDAQ 4,939.3270 -77.6020 -1.55%

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