Tuesday, July 24, 2007

Performance of Dividend Focused ETFs in Down Market: July 24, 2007

With the weaker performing market over the last several days, I thought it would be interesting to see how the dividend focused exchange traded funds performed relative to the general market. Many of the ETFs noted below contain a large portion of the investment allocation in financials and utilities due to the attractive yield on stocks in those sectors. Although only one day, it appears yield alone was not enough to provide downside support to a stock or ETF in the down market.

As noted in the chart below, the bottom three performing sectors on Tuesday in the S&P 500 Index were financial, energy and utilities:

(click on table for larger image)

sector performance S&P 500 Index. July 24, 2007Source: Standard & Poor's

The performance of several dividend focused ETFs are detailed in the following table:

(click on table for larger image)

Dividend Focused ETF performance. July 24, 2007

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