Top Dividend ETFs Brace for Test From Rising Rates

The video discusses the recent sell-off in high dividend-yielding stocks, particularly utilities, due to rising Treasury yields post-election. It explains the difference between Treasury and dividend yields, highlighting the impact on dividend ETFs. The video categorizes dividend ETFs into 'growers' and 'high yielders', noting their varying sensitivity to interest rates. It analyzes the VIG ETF, emphasizing its strict criteria and market cap weighting. The discussion concludes with the impact of these changes on ETF inflows and outflows, noting a shift in investment trends.

What has caused the recent sell-off in high dividend-yielding stocks like utilities?

• A decline in the stock market

• A rise in corporate tax rates

• A decrease in Treasury yields

• An increase in Treasury yields post-election

Which type of dividend ETFs are less sensitive to interest rate changes?

• Telecom sector ETFs

• High dividend payers

• Utilities-focused ETFs

• Dividend 'growers'

What is the yield of the VIG ETF compared to the 10-year Treasury note?

• Not related to the 10-year note

• Lower than the 10-year note

• Equal to the 10-year note

• Higher than the 10-year note

What criteria does the VIG ETF use to select its stocks?

• Companies in the technology sector

• Companies that have increased dividends for 10 years

• Companies with the highest market cap

• Companies with the highest stock price

How have rising rates affected ETF inflows and outflows since the election?

• Decreased inflows into all ETFs

• Increased inflows into dividend ETFs

• Minimal impact on dividend ETF outflows

• Significant outflows from all ETFs