IShares Select Dividend ETF DVY offers a lofty current dividend but compromises on quality in the process. The fund's benchmark screens new additions for sound fundamentals but doesn't hold existing holdings to the same standard. These divergent standards allow fundamentally weak stocks to linger and often languish and warrant a Morningstar Analyst Rating of Neutral.
Will DVY outperform in future?
Get our overall rating based on a fundamental assessment of the pillars below.
The Process Pillar is our assessment of how sensible, clearly defined, and repeatable DVY’s performance objective and investment process is for both security selection and portfolio construction.
The People Pillar is our evaluation of the DVY management team’s experience and ability. We find that high-quality management teams deliver superior performance relative to their benchmarks and/or peers.
The Parent Pillar is our rating of DVY’s parent organization’s priorities and whether they’re in line with investors’ interests.