Value exchange-traded funds (ETF) invest in stocks of the companies which pay regular income to their shareholders in the form of dividends. Value ETFs are suitable for investors who are looking for a regular stream of returns at frequent intervals (like monthly or quarterly) from their investments. Such value ETFs attempt to act as a bridge between the regular interest paying bonds and stocks which have uncertain returns. A big diversified set of value ETFs are available in the market which allow the interested ETF investors to choose from those which invest in value companies of a particular geography (like China, Japan, or the U.S.), of a particular sector (like energy, finance, retailers), or based on certain valuation range (like small-, mid- or large-cap value stocks). Value ETFs work opposite of the Growth ETFs, which are the funds that don't pay any regular dividends to shareholders but re-invest the earnings in business to generate high returns. One can also explore the list of Blend ETFs, which offer a mixed bag of both growth and dividend-paying value stocks. Following is the list of all 31 exchange-traded funds that FKnol has in its database for ETFs which belong to the Value category:
The WisdomTree International High Dividend ETF tracks a dividend-weighted index of developed-market stocks, excluding the US and Canada, ranked in the top 30% by dividend yield of the WisdomTree DEFA Index. ...Detailed Profile Dividend Frequency: Quarterly Dividend History
Category: Foreign Large Cap Equities
The Global X MSCI SuperDividend EAFE ETF tracks an index of stocks from developed countries outside North America. After screening for dividend growth and sustainability, the 50 highest yielding stocks are selected and given equal weight. ...Detailed Profile Dividend Frequency: Monthly Dividend History
Category: Foreign Large Cap Equities
The iShares MSCI Poland ETF tracks a market-cap-weighted index of the broader Polish equity market. ...Detailed Profile Dividend Frequency: Semi-Annually Dividend History
Category: Emerging Markets Equities
The iShares MSCI Europe Financials ETF tracks a market-cap-weighted index of financials stocks in developed European markets. ...Detailed Profile Dividend Frequency: Semi-Annually Dividend History
Category: Financials Equities
Fidelity Blue Chip Value ETF is an exchange-traded fund incorporated in the USA. The ETF will normally invest primarily in equity securities of well-known and established companies that the Adviser believes are undervalued in the marketplace.The Adviser normally invests at least 80% of the fund's assets in blue chip companies which generally have large or medium market capitalizations. ...Detailed Profile Dividend Frequency:
Category: Large Cap Blend Equities
$31.25
-1.14%
0.59%
0
8.
Fidelity MSCI Telecommunication Services Index ETF (FCOM)
The Fidelity MSCI Telecommunication Services Index ETF tracks a market-cap-weighted index of stocks in the US telecommunication services sector. ...Detailed Profile Dividend Frequency: Quarterly Dividend History
Category: Communications Equities
The primary aim for value ETFs is to generate a regular stream of returns for its investors. It can be achieved by either the fund itself generating sufficient returns at regular interval by way of selling a part of holdings, or by investing in stocks of the companies which pay regular dividends which can be collectively passed on to the value ETF investors. Since the dividend income is considered tax-free in the hands of recipient shareholders in many markets across the globe, such value ETFs make for an attractive investment option. They are preferred by retirees who may be looking for regular stream of tax-free cashflows, or by any other investor having similar aim. The Value ETFs may select stocks for investing based on their past performance of dividend payment, or on the basis of future potential of regular income generation which will help them maintain the record of regular dividend payments. Such ETFs may also follow a passive investment approach, by simply tracking a stock market index that focuses on value generation theme. Overall, the value ETFs invest in stocks which are known to have high dividend yield, consistent record of regular dividend payment and promising potential for future income generation which gets translated to dividend payments in future. Mostly, the companies operating in the retail, utility, energy and consumer durables sectors are known to be high dividend payers which is where most of the value ETF investments go to.
Where do Value ETFs Invest?
A long list of companies and different financial instruments exist where the Value exchange-traded funds may invest the money collected from the ETF investors. Below is a small sample of companies whose stocks may qualify for investment by Value ETFs, though there can be many more businesses and financial instruments where these ETFs can park the capital for returns:
Company (Ticker)
Company Description
Market Cap
%YTD Gains
▶ State Street Corp. (STT): State Street Corporation, incorporated on October 16, 1969, is a financial holding company. The Company operates through two lines of business: Investment Servicing and Investment Management. The Company, through its ....Detailed Company Profile....Dividend History
▶ Capital One Financial (COF): Capital One Financial Corporation, incorporated on July 21, 1994, is a diversified financial services holding company. The Company, along with its subsidiaries, offers a range of financial products and services ....Detailed Company Profile....Dividend History
▶ Newmont Mining Corporation (NEM): Newmont Mining Corporation, together with its subsidiaries, operates in the mining industry. The company primarily acquires, develops, explores for, and produces gold, copper, and silver. Its operatio....Detailed Company Profile....Dividend History
▶ Avnet, Inc. (AVT): Avnet, Inc. (Avnet), incorporated on July 22, 1955, is a distributor of electronic components, enterprise computer, networking and storage products and software, and embedded subsystems. The Company operates through Electronics ....Detailed Company Profile....Dividend History
▶ Arconic Inc (ARNC): Arconic Inc. engineers, manufactures, and sells lightweight metals worldwide. The company operate in three segments: Engineered Products and Solutions, Global Rolled Products, and Transportation and Constructio....Detailed Company Profile....Dividend History