Here's an ETF That Offers Both Dividends and Low Volatility

NEW YORK (TheStreet) -- Love dividends but hate volatility? There's an exchange-traded fund for you.

The PowerShares S&P 500 High Dividend Portfolio (SPHD) "is composed of 50 securities traded on the S&P 500 Index (SPY) that historically have provided high dividend yields and low volatility," according to PowerShares.

The fund essentially adds a dividend component to the popular PowerShares S&P 500 Low Volatility Portfolio (SPLV), which tracks the 100 S&P 500 members with the lowest trailing 12-month volatility. That ETF, the first low-volatility fund to list in the U.S., now has $4.81 billion in assets since it debuted four years ago.

Pure-play dividend ETFs also have been popular. Investors have poured $3.37 billion into the Vanguard Dividend Appreciation ETF (VIG), the largest dividend fund, over the past two years.

Investors also have been steadily embracing the combo ETF this year. The PowerShares S&P 500 High Dividend Portfolio has a trailing 12-month dividend yield of 3.36%, which is nearly a full percentage point above where 10-year yields closed Thursday.

The ETF also pays its dividend monthly, providing a steady stream of payouts to income investors. Those might be two reasons why the ETF has hauled in almost $304 million of its $560 million in assets this year.

The combo ETF isn't without risks, of course. The largest sector weight in the fund, 19%, is given to utility stocks, which tend to offer both dividends and price stability. But those stocks are also vulnerable to rising interest rates.

If you liked this article you might like

This Low-Volatility High-Yield Fund Has Crushed the S&P 500

Beat the Volatility With These 4 ETFs

4 Low Volatility ETFs for a Wild Market

6 'Crash-Proof' Safe-Haven Investments for a Bear Market