Top ETFs for Your Retirement Savings
ETFs with a forward focus are the preference of Ryan Issakainen, an exchange-traded fund strategist for First Trust Advisors. "It's important to consider equity income strategies that have a way to identify companies that are well-positioned to increase dividends," he said.
Issakainen likes the methodology used by the First Trust Value Line Dividend Index Fund (FVD) in selecting dividend paying companies. "It uses Value Line's safety ranks," he said. "Built into its safety rankings is an evaluation of a company's fundamental health."
Issakainen says this consideration is a better predictor of the future than past dividends. "It's really what ends up being determinative of whether a company is going to be able to maintain and perhaps grow its dividends in the future," he said. "More importantly it helps to identify companies that might have to cut their dividends."
Those saving for retirement should pay careful attention to the sector allocation of their portfolios. "The vast majority of equity dividend focused ETFs tend to be underweight tech stocks," Issakainen said. "Most dividend indexes have rules that require a company to have raised or paid dividends over a very long period of time." Issakainen says the First Trust NASDAQ Technology Dividend Index Fund (TDIV) can serve as an ideal complement for retirement savers looking to build a well-balance portfolio. "The technology sector represents the largest contributor of dividends of any sector in the S&P 500," he said. "That's the case, because the tech sector has grown its dividends at a rate of right around 20% for the last five or six years."
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $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
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV