Investing in VictoryShares Dividend Accelerator ETF (VDC) offers potential benefits. The fund actively selects companies that consistently increase their dividend payments, potentially providing investors with a stream of dividend income. VDC employs a proprietary dividend scoring system to identify companies with strong fundamentals and a track record of dividend growth. As a result, it can provide exposure to a diversified portfolio of dividend-paying stocks, potentially mitigating risk. Additionally, VDC seeks to enhance returns through active management, adjusting its portfolio to capture changes in market conditions. However, it’s important to consider that ETFs are subject to market fluctuations, and past performance may not guarantee future results. It’s recommended to research and consult with financial advisors before making any investment decisions.
Yield and Expense Ratio
The yield on the Vanguard Energy ETF (VDE) is currently 2.97%. This means that if you invest $100 in VDE, you can expect to earn $2.97 in dividends over the course of a year. The expense ratio on VDE is 0.08%, which means that you will pay $0.80 for every $100 you invest in the ETF.
Yield Comparison
- VDE: 2.97%
- XLE: 3.06%
- XOP: 3.23%
Expense Ratio Comparison
- VDE: 0.08%
- XLE: 0.10%
- XOP: 0.20%
When comparing VDE to other similar ETFs, it is important to consider both the yield and the expense ratio. VDE has a slightly lower yield than XLE, but it also has a lower expense ratio. This means that you will pay less in fees with VDE over the long term.
Portfolio Diversification
VDC ETF provides diversification benefits by investing in various assets, including domestic and international stocks, bonds, and commodities.
- Reduces portfolio risk by spreading investments across different asset classes.
- Helps stabilize returns during market fluctuations.
- Provides exposure to different industries and sectors.
Volatility
VDC ETF aims to manage volatility by investing in a broad range of assets with varying risk profiles.
- Bonds and commodities often exhibit lower volatility than stocks, providing a degree of stability.
- International investments can diversify risk, as different markets may perform differently from the domestic market.
- The ETF’s asset allocation is actively managed to adjust to changing market conditions and maintain a desired risk level.
| Period | Standard Deviation |
|---|---|
| 1 Year | 7.5% |
| 3 Years | 6.8% |
| 5 Years | 6.1% |
The table shows that VDC ETF has exhibited moderate volatility over different timeframes.
Long-Term Performance
The Vanguard Dividend Appreciation ETF (VIG) has a long history of strong performance. Since its inception in 2006, VIG has outperformed the S&P 500 Index by an average of 1.5% per year.
VIG’s long-term performance is due in part to its focus on dividend-paying stocks. Dividend-paying stocks tend to be more stable than non-dividend-paying stocks, and they can provide a source of income for investors.
Capital Gains
- VIG has also generated significant capital gains for investors. Since its inception, VIG has returned an average of 10% per year, which is more than double the return of the S&P 500 Index.
- VIG’s capital gains are due in part to its low turnover rate. The fund’s managers typically hold stocks for several years, which allows them to benefit from long-term growth.
| Year | VIG Return | S&P 500 Return |
|---|---|---|
| 2006 | 22.7% | 15.8% |
| 2007 | 23.5% | 5.5% |
| 2008 | -33.4% | -37.0% |
| 2009 | 26.5% | 26.5% |
| 2010 | 17.9% | 15.1% |
Comparison to Similar ETFs
Vdc Etf is an exchange-traded fund (ETF) that invests in companies involved in the development and deployment of electric vehicle (EV) technologies. It is one of several ETFs that focus on this growing industry. Here is a comparison of Vdc Etf to two other similar ETFs:
- ARK Autonomous Technology & Robotics ETF (ARKQ): ARKQ is an actively managed ETF that invests in companies involved in autonomous technology, robotics, and EVs.
- Global X Autonomous & Electric Vehicles ETF (DRIV): DRIV is a passively managed ETF that invests in companies involved in the development and production of autonomous and electric vehicles.
The following table compares the three ETFs in terms of some key metrics:
| ETF | Expense Ratio | Assets Under Management (AUM) | Trailing 12-Month Return |
|---|---|---|---|
| Vdc Etf | 0.60% | $100 million | 10% |
| ARKQ | 0.75% | $1 billion | 15% |
| DRIV | 0.65% | $500 million | 12% |
As you can see, Vdc Etf has a lower expense ratio than ARKQ but a higher expense ratio than DRIV. It also has the lowest AUM of the three ETFs, which means that it may be less liquid. In terms of performance, Vdc Etf has underperformed ARKQ over the past 12 months but outperformed DRIV.
Thanks for sticking with me through this deep dive into Vdc Etf. I know it can be a lot to take in, but I hope you found it helpful. If you’re still on the fence about whether or not Vdc Etf is a good investment for you, I encourage you to do some more research. I’d love to hear your thoughts on the matter. As always, feel free to drop by again soon for more investing insights!