One investment trend is proving remarkably consistent as the market faces volatility: dividend exchange-traded funds (ETFs) are accomplishing record inflows as the stock market weathers the storm.
So far, there is a record $50 billion allocation, which according to Bloomberg Intelligence, is notable in a world where cash-like treasuries are offering investors the highest yields in over a decade. The cash flowing into dividend-focused ETFs already has increased 25 percent higher than the record set for 2021. Bloomberg Intelligence predicts that high-dividend ETFs could double their inflow record this year as investors seek alternatives.
WisdomTree US High Dividend Fund and Schwab US Dividend Equity ETF are among the top-performing ETFs. WisdomTree has returned 2.9 percent this year, luring in $406 million. Schwab has attracted nearly $12 billion despite losing 8.5 percent in net inflows.
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