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An Analysis of DVY’s Holdings

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DVY’s portfolio

The iShares Select Dividend ETF (DVY) currently holds 100 stocks in its portfolio. Lockheed Martin (LMT), Philip Morris (PM), CME Group (CME), Kimberly Clark (KMB), and McDonalds (MCD) are its top five holdings. The utility sector represents almost 32.31% of DVY. As of September 9, 2015, there were 32 stocks in DVY that are from utility sectors. Out of these 32 stocks, only two stocks went up in the period between September 1-8, 2015, whereas the other 30 went down. The average return of the 30 stocks that fell was -3.03%, while the mean return on the two stocks that rose was 0.99%.

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Utilities and financials form a major part of DVY

Similar to utilities, the financial sector also forms a significant part of DVY. In total, the sector represents 12.03% of DVY. 16 stocks in DVY’s portfolio are from the financial sector. Of these 16 stocks, five stocks went up in the period of September 1-8, 2015, and 11 went down. The average return of the 11 stocks that fell was -1.16%, while the average return of the five stocks that rose was 0.60%. Some of the financial stocks that went up were Cincinnati Financials (CINF), CME Group (CME), and People’s United Financial (PBCT).

DVY is underperforming

In short, most of the stocks in DVY’s portfolio underperformed in the previous week, while those stocks that achieved a positive return had an average return lower than the market. From the 100 stocks in DVY’s portfolio, only 43 stocks managed to yield positive returns, which resulted in DVY giving a return of only 0.2% in the period between September 1-8, 2015.

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