HDV Profile
The iShares Core High Dividend ETF aims to provide investors with exposure to high-quality dividend-paying equities. The fund generally invests at least 80% of its assets in the securities that make up its underlying index, as well as in investments that have economic characteristics substantially identical to those of the index's component securities. This strategy ensures that the fund’s performance closely mirrors that of the index, which is focused on delivering high dividend income.
The underlying index tracks a selection of income-paying securities that are evaluated for superior company quality and financial health. Morningstar, Inc.'s proprietary index methodology is used to screen and select these securities, ensuring that the included companies exhibit strong financial metrics and stability. The index focuses on identifying stocks that offer robust dividend yields while maintaining high standards of corporate quality.
The ETF's investment approach emphasizes stability and income generation through high dividend yields. By concentrating on high-quality, financially sound companies, the fund aims to provide investors with a steady stream of dividend income along with potential capital appreciation. This focus on quality helps mitigate risks associated with investing in lower-quality dividend payers.
As a non-diversified fund, the iShares Core High Dividend ETF may concentrate its investments in a narrower range of securities compared to more broadly diversified funds. This targeted approach allows the fund to concentrate on high-yielding, financially strong companies, which can offer more attractive income opportunities. The fund is suitable for investors seeking a reliable income stream and a focus on high-quality dividend-paying stocks in their portfolio.
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