Dividend ETFs seem to have grown in popularity, with net inflows totaling $17.0 billion over the past 3 months and $44.5 billion over the past 12 months, as of 4/29/22. In April, while equity ETFs overall endured $5.9 billion of net outflows, dividend ETFs reported net inflows totaling $7.8 billion (Source: FactSet). The increase in demand for dividend ETFs can partly be attributed to the strong relative performance many of these ETFs have provided this year. We expect demand to remain robust for those investors seeking exposure to higher quality stocks, alternative sources of income, and potential dividend growth. To achieve these ends, dividend ETFs employ a variety of strategies. In this piece, we provide a brief overview of four of our dividend ETFs, highlighting some of the key differences between each approach.
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