CDL ETF

CDL's 3.2% dividend yield and low P/E ratio make it attractive for income-focused portfolios, but not for growth-oriented investors. The ETF's sector allocation is heavily tilted towards utilities, energy, and financials, with minimal exposure to technology and industrials. CDL's low volatility and defensive strategy provide downside protection, but its growth potential is limited due to sector biases.

CDL is an exchange-traded fund (ETF) that prioritizes high dividend yields and low volatility. Its diversification and historical performance have been strong since inception, but it may lag behind VYM in the future due to its higher costs and turnover.

VictoryShares US Large Cap High Div Volatility Wtd ETF offers a rules-based approach that bridges active and passive management. The ETF's investment process may result in betting on both good and bad sectors, potentially leading to so-so returns in 2024. A company's past 12-month profitability is essential to CDL's selection process.

CDL has a 3.62% dividend yield and makes monthly distributions. Its expense ratio is 0.35%, and the ETF has amassed $354 million in assets under management over nearly nine years. Victory Capital's literature suggests market-cap-weighting schemes are flawed and that its volatility-weighted approach is superior. However, the evidence I gathered indicates the opposite. CDL features 11–12% lower free cash flow margins than funds like SCHD and DLN, which incorporate a security's size into the weighting equation. It's no coincidence that they've outperformed.