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.
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 Plus 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