This Dividend ETF Is Up 21% and Doesn’t Own a Single Share of Palantir
The iShares Select Dividend ETF (DVY) has quietly delivered a 21.05% return over the past year, all without owning a single share of Palantir Technologies (PLTR). The fund focuses on 100 dividend-paying stocks, offering a steady income alternative to growth investing.
Key Numbers
In a market dominated by momentum stocks like Palantir (PLTR), the iShares Select Dividend ETF (DVY) has proven to be a strong alternative for income investors. The fund, managed by iShares, returned 21.05% over the past year without holding any Palantir shares.
What is DVY?
DVY is a dividend-focused ETF that screens for stocks with high and sustainable dividend yields. It holds approximately 100 stocks, with an average dividend yield of 3.2% and an expense ratio of 0.38%.
Why No Palantir?
Palantir does not pay dividends, which automatically excludes it from DVY's selection criteria. The fund focuses on mature companies with consistent dividend payouts, such as utilities and consumer staples.
Performance
Despite lacking high-growth names, DVY has outperformed the S&P 500 over the past year, thanks to its focus on high-yield, stable stocks.
What This Means for Investors
DVY offers a lower-risk alternative for income-seeking investors. The absence of growth stocks like Palantir reduces volatility but may limit capital appreciation in bull markets.
Frequently Asked Questions
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