The AAM S&P 500 High Dividend Value ETF (SPDV) announced a monthly dividend of 3.894 cents on Nov. 1, payable on Nov. 6. The exchange-traded fund reported a monthly total decline of 5.61% in October, resulting in a year-to-date total return of 1.21%. In 2018, the ETF continues to be a top income choice for investors as dividend companies weather the market’s bearish swings slightly better than the market at large.
October was a brutal month for equities, with many indexes reporting bear market signals and correction-territory returns. For the month, the Nasdaq Composite Index was down 9.1%, the S&P 500 Index reported a loss of 7.3% and the Dow Jones Industrial Average fell 5.8%.
Dividend value stocks faired somewhat better during the turbulent month. SPDV’s benchmark S&P 500 Dividend and Free Cash Flow Yield Index reported a loss of 5.84% and the Dow Jones US Select Dividend Index was down 4.3%.
Year to date, SPDV remains one of the best-performing funds for investors focused on large-cap income. Launched in November 2017, the ETF is a relatively new income-focused option. It seeks to replicate the S&P Dividend and Free Cash Flow Yield Index created in conjunction with the ETF’s launch. As a smart beta index, the ETF has been successful through the use of a customized smart beta indexing methodology that uses quantitative analysis to screen for the S&P 500 stocks with the best dividend and free cash flow attributes.
In October, SPDV reported a monthly total loss of 5.61% as equities experienced a market-wide correction with risk-off trading and global trade uncertainty causing declining valuations. Year to date, SPDV has a total return of 1.21%, outperforming its other S&P 500 high dividend peers.
As of October 31, top holdings in the ETF included