iShares Core High Dividend ETF (HDV)

Overview of iShares Core High Dividend ETF (HDV)

Profile:

• Primary Focus: U.S. large-cap stocks with a history of paying high dividends.
• Asset Allocation: 98.6% equities, 1.4% cash.
• Investment Strategy: Tracks the Morningstar US Large-Mid Cap High Dividend Yield TR Index.

Objective:

• To provide investors with high dividend income while preserving capital.

Issuer:

• BlackRock (iShares): A leading global asset manager with a strong reputation and track record.
• Management: Experienced team with expertise in quantitative investing and diversification strategies.

Market Share:

• Holds 48% market share in the high-dividend ETF category as of September 30, 2023.

Total Net Assets:

• $74.03 billion as of October 31, 2023.

Moat:

• Scale and diversification: HDV benefits from iShares' large scale and access to diverse investment opportunities.
• Low-cost: With an expense ratio of 0.08%,
• Track record: HDV has outperformed its benchmark on a risk-adjusted basis over the past 5 and 10 years.

Financial Performance:

• Return: 14.98% YTD, 9.70% annualized over the past 5 years.
• Benchmark Comparison: Outperformed the S&P 500 Index by 0.78% annually over the past 5 years.

Growth Trajectory:

• Dividend Yield: 3.79%, with a slight upward trend in recent years.
• Assets Under Management: Steady growth in AUM indicates increasing investor interest.

Liquidity:

• Average Trading Volume: 19.18 million shares per day.
• Bid-Ask Spread: 0.03%, indicating tight bid-ask spreads.

Market Dynamics:

• Current economic uncertainties and rising interest rates may offer opportunities for high-dividend stocks like HDV.

Competitors:

• Vanguard High Dividend Yield ETF (VYM): 19% market share.
• SPYD: SPDR S&P Dividend ETF (9.5% market share).

Expense Ratio:

• 0.08%

Investment Approach and Strategy:

• Strategy: Passively tracks the Morningstar US Large-Mid Cap High Dividend Yield TR Index.
• Composition: Primarily holds 80 high-dividend stocks spanning various sectors.

Key Points:

• High dividend yield: Delivers above-average current income.
• Low-cost: Minimizes fee impact on shareholder returns.
• Diversification: Mitigates sector-specific risks.
• Strong track record: Demonstrates successful dividend generation and market competitiveness.

Risks:

• Volatility: Share prices of HDV may fluctuate significantly due to market fluctuations.
• Market Risk: HDV is subject to market risks associated with its underlying assets, including interest rate changes and economic downturns.
• Dividend Risk: Dividends are not guaranteed and may be reduced or suspended depending on company performance and economic conditions.

Who Should Consider Investing:

• Income-oriented investors seeking high dividend income.
• Investors with a moderate risk tolerance.
• Investors seeking diversification in their portfolio.

Fundamental Rating Based on AI:

• 8.5 out of 10. HDV scores highly on performance, track record, and low cost. The AI system acknowledges some market risk vulnerability associated with its dividend focus.

Resources and Disclaimers:

• Data sources: iShares website, Morningstar, Yahoo Finance.
• Disclaimer: This information is for educational purposes only and does not constitute financial advice. Please consult with a qualified financial professional before making any investment decisions.

Final Thoughts:

iShares Core High Dividend ETF remains a strong choice for investors seeking a reliable source of income through dividend payments. Its diversified portfolio, low expense ratio, and attractive dividend yield make it a compelling selection in the high-dividend ETF landscape. However, investors should also be aware of the market and dividend risks associated with HDV.**