(DVY) iShares Select Dividend - Ratings and Ratios

The iShares Select Dividend ETF (NASDAQ:DVY) is a U.S.-focused exchange-traded fund designed to track the performance of high dividend-yielding stocks. It primarily invests at least 80% of its assets in the component securities of its underlying index, which is the Dow Jones U.S. Dividend 100 Index. This index selects 100 U.S. stocks with the highest dividend yields and a history of consistently paying dividends. The fund may also invest in securities that have economic characteristics substantially identical to the index components.

The ETF is categorized under Large Value, reflecting its focus on established, dividend-paying companies with lower valuations. It provides exposure to sectors such as utilities, financials, and consumer staples, which are historically strong dividend-paying sectors. The funds portfolio is diversified across 100 holdings, with a weighted average market capitalization of over $50 billion, indicating a focus on large-cap equities.

From a technical perspective, DVY is currently trading at $123.60, below its key moving averages (SMA 20: $127.94, SMA 50: $131.50, SMA 200: $130.70), suggesting potential near-term resistance. The average true range (ATR) of $3.12 indicates moderate volatility. The funds average 20-day trading volume of 442,245 shares reflects decent liquidity for investors seeking to enter or exit positions.

On the fundamental side, DVY manages approximately $18.215 billion in assets under management (AUM), making it a well-established ETF in the large value category. Its expense ratio of 0.38% is competitive within its peer group, offering cost-effective exposure to high-quality dividend-paying stocks.

Over the next three months, DVY is expected to face headwinds from its current technical setup, as it remains below its major moving averages. However, its strong AUM and focus on dividend-paying stocks could provide stability amid market volatility. If broader market conditions improve and value stocks regain momentum, DVY could see a rebound toward its SMA 50 level of $131.50. Conversely, if equity markets decline, the funds dividend-focused strategy may help mitigate downside risks compared to non-dividend-paying peers.