The iShares Core High Dividend ETF (NYSEMKT: HDV) isn’t as large or as popular as other dividend ETFs.
As a result, many investors have likely missed that the fund is outperforming the S&P 500 this year
While that broad market index was up a strong 9% through the first half of the year, HDV is up more than 15%. Here’s a closer look at this top ETF and what has driven its quiet outperformance so far this year. High-quality, high-yielding dividend stocks The iShares Core High Dividend ETF is a passively managed fund that tracks an index of high-yielding U.S. dividend stocks (Morningstar Dividend Yield Focus Index).
That index doesn’t just screen companies based on their dividend yield. It also applies additional financial quality screens, including having a wide economic moat (sustainable competitive advantage) and a high distance to default (strong financial health). The index selects the highest-yielding stocks from those that pass its quality screens.