Latest news with #iSharesCoreHighDividendETF
Yahoo
23-05-2025
- Business
- Yahoo
Is iShares Core High Dividend ETF (HDV) a Strong ETF Right Now?
Making its debut on 03/29/2011, smart beta exchange traded fund iShares Core High Dividend ETF (HDV) provides investors broad exposure to the Style Box - Large Cap Value category of the market. Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry. Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way. But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market. By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such. While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results. The fund is managed by Blackrock, and has been able to amass over $10.94 billion, which makes it one of the larger ETFs in the Style Box - Large Cap Value. HDV, before fees and expenses, seeks to match the performance of the Morningstar Dividend Yield Focus Index. The Morningstar Dividend Yield Focus Index offers exposure to high quality U.S. domiciled companies that have had strong financial health and an ability to sustain above average dividend payouts. For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same. Annual operating expenses for this ETF are 0.08%, making it one of the least expensive products in the space. It's 12-month trailing dividend yield comes in at 3.55%. Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis. For HDV, it has heaviest allocation in the Consumer Staples sector --about 22.30% of the portfolio --while Energy and Healthcare round out the top three. Looking at individual holdings, Exxon Mobil Corp (XOM) accounts for about 7.76% of total assets, followed by Johnson & Johnson (JNJ) and Progressive Corp (PGR). The top 10 holdings account for about 48.62% of total assets under management. So far this year, HDV has added about 2.91%, and was up about 7.44% in the last one year (as of 05/23/2025). During this past 52-week period, the fund has traded between $106.73 and $121.28. The fund has a beta of 0.65 and standard deviation of 13.61% for the trailing three-year period, which makes HDV a medium risk choice in this particular space. With about 82 holdings, it effectively diversifies company-specific risk. IShares Core High Dividend ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider. Schwab U.S. Dividend Equity ETF (SCHD) tracks Dow Jones U.S. Dividend 100 Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. Schwab U.S. Dividend Equity ETF has $67.67 billion in assets, Vanguard Value ETF has $132.07 billion. SCHD has an expense ratio of 0.06% and VTV charges 0.04%. Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value. To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report iShares Core High Dividend ETF (HDV): ETF Research Reports Johnson & Johnson (JNJ) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report The Progressive Corporation (PGR) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports Schwab U.S. Dividend Equity ETF (SCHD): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
11-04-2025
- Business
- Yahoo
The Last Time the Stock Market Started a Year This Badly Was 2022. Is Another Crash Coming?
As of Monday's close, the S&P 500 has fallen by about 15% this year (although the index regained about half of that after President Donald Trump put most of his tariff plan on pause). The index is coming off two straight years of gains in excess of 20%, so a bit of a slowdown was arguably overdue. However, investors likely weren't expecting a decline this sharp out of the gate for 2025, especially with the markets initially reacting favorably to Trump's November election win. The market's decline is no mystery -- investors around the world are worried about the impact that global tariffs will have on businesses across all sectors. But is a full-blown market crash coming, and what should investors do amid all this uncertainty? Let's take a closer look at what your best approach may be from here on out. The past two years have been great for investors, but before that, in 2022, the market went into a free fall. That year, the S&P 500 fell by more than 19% as the boost companies got from the pandemic-fueled spending faded, and businesses were cutting jobs as many of them realized they overestimated demand. Plus, rising inflation was a growing problem. The S&P 500 fell by a little less than 5% during the 2022 first quarter. This year, the index was down by a similar amount at the end of March -- about 4.6%. The tariffs announced on "Liberation Day" earlier this month, however, have led to an even broader fall in the markets. Whether you believe the market is in the early stages of a full-blown crash will likely depend on how serious you believe Trump is about tariffs. If it proves to be a negotiating tactic (as of April 9 that seems very plausible) and they end up going away, the impact could being short-lived, similar to how 2020 started when the pandemic crushed the S&P 500. The index fell by 20% during the first quarter, but rebounded after government stimulus was adopted, and the index finished the year up 16%. If, however, tariffs are imposed after a 90-day pause, investors may want to brace for the possibility of a recession. The last recession lasted from late 2007 through until mid-2009. During that stretch, the S&P 500 tumbled more than 36%. If you're worried about a market crash, you can reduce your risk while remaining invested in stocks. A good option to consider is putting money into exchange-traded funds (ETFs), which can help you diversify your holdings through a single investment. An ETF that may be particularly attractive right now is the iShares Core High Dividend ETF (NYSEMKT: HDV), which yields 3.4%. The dividend income you earn from that investment can help offset losses in the stock market and provide you with some valuable steady cash flow. The fund invests in solid, blue chip stocks with strong fundamentals, including ExxonMobil, AbbVie, Procter & Gamble, and many other big names investors will be familiar with. In total, the fund has 75 holdings. So far this year, the ETF has indeed provided investors with some valuable stability, proving to be a safer option than the S&P 500. Whether you're a retiree or an investor with a lot of years to go, staying invested in the market may still be a good idea. Things can change quickly as the market's surge yesterday showed, and trying to time the ideal moment to invest could lead to you missing out on gains along the way. Instead, it may simply be a good time to reevaluate your portfolio and move away from high-priced stocks and into more reasonably priced investments, including ETFs and dividend stocks, which may not be as vulnerable to large corrections as growth stocks. By reducing your overall risk, that can better protect your portfolio, even if a crash happens. Before you buy stock in iShares Trust - iShares Core High Dividend ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and iShares Trust - iShares Core High Dividend ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $469,399!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $590,231!* Now, it's worth noting Stock Advisor's total average return is 731% — a market-crushing outperformance compared to 146% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 5, 2025 David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AbbVie. The Motley Fool has a disclosure policy. The Last Time the Stock Market Started a Year This Badly Was 2022. Is Another Crash Coming? was originally published by The Motley Fool Sign in to access your portfolio
