ETF Battles: DVY vs. DGRW, Who Wins?
This is an excerpt from ETF Battles on ETFguide TV between DVY vs. DGRW – two stock dividend ETFs. Who wins the battle?
More investors are getting their dividend income via exchange-traded funds (ETFs). Yet, getting dividend cash flow is becoming ever more challenging as more publicly traded companies and real estate investment trusts (REITs) suspend dividends. How bad has it gotten?
The Coronavirus outbreak has triggered an avalanche of dividend cuts or suspensions. Thus far in 2020, almost 90 companies and REITs have eliminated their dividend payouts, the highest rate since the bear market 2000-02 bear market. Plus, another 143 companies have slashed their dividend payouts to shareholders to conserve corporate cash. The year isn’t even half over and 2020 is already on pace to challenge the 316 dividend cuts that happened in 2009.
Dividend cuts and suspensions are a big deal, particularly for retirees who rely on dividend income to fund their lifestyle. The wave of dividend cuts seen in 2020 is an unfriendly reminder dividends are not guaranteed income and can be changed at any moment.
The U.S. ETF marketplace contains almost 150 dividend funds with around $180 billion in assets under management. Some dividend ETFs focus on high yield whereas others focus on dividend growth or dividend stability. Among this group are the iShares Select Dividend ETF (DVY) and the WisdomTree US Quality Dividend Growth Fund (DGRW).
DGRW, which has just over $3 billion in assets, was launched in 2013. You could say its the newer kid on the block when it comes to dividend ETFs. By comparison, DVY has existed since 2003 and has amassed $13 billion in assets.
While DVY and DGRW are both dividend focused ETFs, their approach is very different. How do they compare in key categories like yield, exposure and performance?
In our latest ETF Battles, Ron DeLegge at ETFguide referees the match-up between DVY and DGRW with David Kreinces at ETF Portfolio Management and Mike Akins at ETF Action judging the battle. Just one ETF can win this battle and each fund is pitted against the other in four battle categories.
In this episode, our judges pick their ETF battle winner, carefully dissecting each fund from top to bottom. Each judge has 30 seconds to choose an ETF winner in four battle categories. At the end of the show, an ETF Battle winner is declared. Find out who wins.
Watch the full episode of ETF Battles on ETFguide TV between DVY vs. DGRW.