History Says Nothing Beats This Dividend ETF for Total Returns
No broad-market dividend ETF has performed better than this one over the past five years.
When debating sports, the ultimate deciding factor is the scoreboard. Exchange-traded funds (ETFs) are no different, as the one crucial metric to consider is total returns compared to its peers over the long term. However, past performance does not guarantee future results. That being said, there is one dividend ETF that history suggests is the best, with the highest average annualized total return over the past five years – the Franklin International Low Volatility High Dividend Index ETF (LVHI +0.01%).
No other dividend ETF has come close, with the next closest being the sector-focused VanEck Energy Income ETF. Unlike the majority of ETFs that focus on U.S. stocks, LVHI is a global fund, investing in international developed markets with high yields and low volatility. After adjusting for currency fluctuations, the fund's underlying index includes 198 stocks from countries such as Japan, Canada, the U.K., and France.
Notably, the fund's holdings include companies like Shell, Suncor Energy, and Canadian Natural Resources. LVHI offers a robust distribution yield of 3.37%, and is currently up 21% over the past year. With its low valuation, diversified global exposure, and promising outlook driven by international growth catalysts, this dividend ETF seems like an attractive option for investors seeking both stability and growth potential.
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