Our Rating: ★★★½ (3.5 out of 5)
Best For: Income-focused investors who want a dividend-weighted basket of about 100 U.S. stocks and accept a higher fee for it.
Not Ideal For: Cost-sensitive buy-and-hold investors, and anyone who wants technology or growth exposure.
Expense Ratio: 0.38%
Our Take: DVY has delivered a trailing yield near 3.5% and a diversified, dividend-weighted portfolio. It also charges several times what the lowest-cost rivals do and has trailed its index by about 0.4 percentage points a year. It may suit income-oriented investors, but cheaper alternatives deserve a look.
What Is the iShares Select Dividend ETF (DVY)?
If you are asking what the DVY ETF is, it is an exchange-traded fund from BlackRock’s iShares that holds roughly 100 high-dividend-paying U.S. stocks. It tracks the Dow Jones U.S. Select Dividend Index. That index selects companies by dividend characteristics and weights them by dividend rather than by market capitalization. As a result, the portfolio leans toward financials, utilities and consumer staples instead of the technology giants that dominate cap-weighted indexes.
DVY launched on Nov. 3, 2003, which makes it one of the longer-running dividend ETFs in the U.S. It is an open-end fund listed on Nasdaq, it pays distributions quarterly, and it carries a 0.38% expense ratio. As of Sept. 30, 2026, Morningstar rated it four stars overall, with a Bronze Medalist rating.
DVY ETF Key Facts
| Item | Detail |
|---|---|
| Full name | iShares Select Dividend ETF |
| Ticker | DVY |
| Issuer | BlackRock / iShares |
| Benchmark index | Dow Jones U.S. Select Dividend Index |
| Inception date | Nov. 3, 2003 |
| Expense ratio | 0.38% |
| AUM | ~$22.2 billion (Oct. 20, 2026) |
| Average volume | ~311,000 shares/day |
| Yield | 3.51% 12-month trailing; 3.66% 30-day SEC (as of Sept. 30, 2026) |
| Dividend frequency | Quarterly |
| Structure | Open-end fund |
DVY ETF Performance
As of Sept. 30, 2026, iShares reported annualized NAV total returns for DVY of 10.80% over one year, 16.35% over three years, 9.68% over five years and 9.76% over ten years. Its benchmark index returned 11.24%, 16.79%, 10.11% and 10.19% over the same periods. The fund therefore trailed the index by roughly 0.4 percentage points per year in every window. That is in line with its 0.38% expense ratio and ordinary trading costs, so tracking error was small.
Trailing returns shift with the measurement date. Yahoo Finance’s figures as of Oct. 20, 2026 showed a one-year return of 16.95%, well above the quarter-end number. Calendar-year NAV returns were also uneven: 31.63% in 2021, 1.92% in 2022, 1.09% in 2023, 16.19% in 2024 and 11.64% in 2025. Past performance is not a guarantee of future results, and each of these figures reflected the market conditions of its period.
DVY Top Holdings and Sector Breakdown
DVY held about 104 stocks in October 2026. Because the index weights by dividend instead of market cap, no single position dominated, and the largest was roughly 2.5%.
| Holding | Ticker | Weight |
|---|---|---|
| Pfizer | PFE | 2.46% |
| HP Inc. | HPQ | 2.37% |
| Altria Group | MO | 2.32% |
| Prudential Financial | PRU | 2.13% |
| T. Rowe Price | TROW | 1.98% |
| ONEOK | OKE | 1.82% |
| Target | TGT | 1.69% |
| Verizon | VZ | 1.69% |
| Kimberly-Clark | KMB | 1.64% |
| Chevron | CVX | 1.58% |
| Sector | Weight |
|---|---|
| Financials | 25.77% |
| Utilities | 23.64% |
| Consumer Staples | 13.39% |
| Energy | 8.37% |
| Materials | 5.95% |
| Consumer Discretionary | 5.93% |
| Communication | 5.47% |
| Health Care | 5.21% |
| Information Technology | 3.75% |
| Industrials | 2.03% |
Top-10 concentration was moderate. By comparison, SCHD’s top 10 made up about 41.6% of its assets. Sector concentration was the bigger factor, since financials and utilities together accounted for roughly 49% of the fund.
DVY ETF Pros and Cons
Pros
- Higher yield than several popular rivals. On Oct. 22, 2026, StockAnalysis.com showed a trailing yield of 3.28% for DVY, versus 2.98% for SCHD, 2.36% for SDY and 2.26% for VYM.
- Position-level diversification. About 104 holdings, with the largest near 2.5%, limited single-stock risk.
- Long operating history. The fund has paid distributions quarterly since its 2003 launch.
- Lower-volatility profile. Yahoo Finance listed a five-year monthly beta of 0.53 in October 2026.
- Strong liquidity. iShares reported a 30-day median bid/ask spread of 0.03% (as of Oct. 12, 2026).
Cons
- Higher cost. At 0.38%, DVY’s fee is roughly six to nine times that of SCHD (0.06%) and VYM (0.04%).
- Sector concentration. About half the portfolio sits in financials and utilities, which can be sensitive to interest-rate and regulatory shifts.
- Minimal technology exposure. Information technology was under 4%, so the fund may lag when growth sectors lead the market.
- Variable payouts. Quarterly distributions ranged from $1.15 to $1.62 per share over the last four payments.
Who Should Invest in DVY?
Whether DVY is a good investment depends on your goals, time horizon and risk tolerance rather than on any single metric.
DVY may be a good fit if you:
- Want a portfolio built around current income with quarterly distributions
- Prefer dividend weighting, with no single position above roughly 2.5%
- Hold a growth-heavy core and want a value and income complement
- Value an established fund with a record dating to 2003 and ample liquidity
- Are comfortable paying 0.38% for this specific index methodology
DVY may not be ideal if you:
- Prioritize the lowest possible costs, since several alternatives charge a fraction of the fee
- Need meaningful technology or growth exposure
- Want steady dividend payments, since DVY’s distributions have varied
- Are uncomfortable with roughly 49% in financials and utilities
DVY Alternatives
| ETF | Expense Ratio | AUM | Key Difference |
|---|---|---|---|
| SCHD | 0.06% | ~$114.8B | Cap-weighted, ~100 stocks, top 10 near 42% |
| VYM | 0.04% | ~$81.0B | ~600 stocks, cap-weighted, broader diversification |
| SDY | 0.35% | ~$21.4B | Requires 20+ years of dividend increases |
SCHD tracks the Dow Jones U.S. Dividend 100 Index and weights by market cap. Its fee is far lower, but its top holdings carry much larger weights than DVY’s.
VYM follows the FTSE High Dividend Yield index and held roughly 600 stocks. It is the cheapest and most diversified of the group, though cap weighting meant Broadcom alone was about 6.9% of assets.
SDY tracks the S&P High Yield Dividend Aristocrats Index. It is yield-weighted like DVY, with a similar fee and fund size, but it limits holdings to companies with at least 20 consecutive years of dividend increases.
Related reading: SCHD ETF Review | VYM ETF Review | [SDY ETF Review] | Best Dividend ETFs Compared
Frequently Asked Questions
Is DVY a good long-term investment?
That depends on your goals. DVY has operated since 2003 and delivered annualized returns near 10% over the past decade through Sept. 30, 2026. Its fee and sector concentration are factors to weigh against lower-cost alternatives.
How often does DVY pay dividends?
DVY pays quarterly, with ex-dividend dates typically in mid-March, June, September and December. The last four payments were $1.616 (December 2025), $1.149 (March 2026), $1.247 (June 2026) and $1.329 (September 2026). Amounts vary from quarter to quarter.
What is the difference between DVY and SCHD?
DVY weights its holdings by dividend and charges 0.38%. SCHD weights by market cap and charges 0.06%. SCHD’s top 10 holdings were about 41.6% of assets, versus about 19.7% for DVY. DVY also had a higher trailing yield in October 2026.
Can I lose money investing in DVY?
Yes. DVY is an equity fund, and its price can fall. Its 52-week range through Oct. 22, 2026 ran from $137.16 to $167.06, and its total return was about −32.9% in 2008, according to TotalRealReturns.com. Dividends are not guaranteed.
Does a higher dividend yield always mean a better ETF?
No. Yield can rise when prices fall, and high-yield portfolios may hold companies under financial pressure. Total return, costs, payout sustainability and diversification are all worth reviewing alongside yield.
Data as of October 2026. Sources: issuer websites and finance.yahoo.com.
Disclaimer: The information in this article is for educational and informational purposes only. It does not constitute financial, investment, or tax advice. Past performance is not indicative of future results. Investing in ETFs involves risk, including possible loss of principal. Always consult a qualified financial advisor before making investment decisions.