A well diversified large cap ETF yielding > 3.75% and financial holdings < 25%

[cashflo2u2]

Does anyone know of one meeting those parameters? Something like VIG but higher yielding. Does such a thing exist?

 

[ziggy29]

Not right off the bat -- but if you want a dividend ETF with no financials, one option is to buy the ETF and hedge it with an ETF that shorts the financials.

For example, DVY has about 45% financials. If you bought 20% as much in an ETF that shorts financials, you'd be hedging about half the financial exposure out of your DVY position.

I've never used short ETFs, but I think this would be one way to participate in the dividend ETFs with lower exposure to financials.

And though there are single-sector risks, I believe most utilities ETFs will have a dividend yield of 3.5%.

 

[Lakedog]

VYM yields over 4% with less than 25% financials.

 

[RonBoyd]

Go to ETF Trends — Keeping a grip on exchange traded funds (ETFs) and try their "ETF Analyzer" for starters. I highly recommend their book, "iMONEY," also.