PFM ETF

Looking at dividend growth over just 10 years is not enough to determine the quality of an investment. For example, VIG, another ETF that focuses on 10-year dividend growth, has performed much better than PFM, which was introduced around the same time. Additionally, PFM's investment in the tech sector may not be the best choice at the moment.

Imagine building a portfolio where your investments work for you to generate a steady stream of income without demanding constant attention. Passive income is a powerful financial tool that can help you achieve your financial goals and build long-term wealth.

Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the Invesco Dividend Achievers ETF (PFM) is a passively managed exchange traded fund launched on 09/15/2005.

The Invesco Dividend Achievers ETF invests in companies with ten consecutive years of dividend increases, favoring stable businesses and offering above-average yield and dividend growth. PFM's portfolio is less volatile than the S&P 500, with significant holdings in consumer staples, financial services, and technology sectors. PFM's valuation is mixed, with a P/E ratio of 19.7x, lower than the Russell 1000 but higher than peer dividend ETFs.

The Invesco Dividend Achievers ETF (PFM) was launched on 09/15/2005, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Value segment of the US equity market.

PFM holds over 400 U.S. Dividend Achievers, defined as those with at least ten consecutive years of increasing dividend payments. The ETF has $651 million in AUM. A major negative is PFM's 0.53% expense ratio, which negatively impacts its already low dividend yield. High fees don't always deter me, but in this case, better alternatives exist. In particular, VIG has a similar composition, a competitive combination of growth, value, and quality, and a more reasonable 0.06% expense ratio that should result in higher dividend payments.

PFM's portfolio has seen a few changes in the wake of the underlying index's reconstitution in March. With valuation being less of a concern assuming the new narrative dominates the markets, I am still mostly tepid on PFM, so the Hold rating is maintained. The factor story under the hood has not changed much, with the portfolio now being a bit more expensive while the weighted-average growth rates have weakened slightly.

Invesco Dividend Achievers™ ETF offers exposure to dividend-paying companies with a history of increasing dividends. The PFM ETF's top holdings include Microsoft, Apple, UnitedHealth Group, Exxon Mobil, and JPMorgan Chase. PFM's sector composition is well-diversified, but it has a significant exposure to the Information Technology sector.

If you're interested in broad exposure to the Large Cap Value segment of the US equity market, look no further than the Invesco Dividend Achievers ETF (PFM), a passively managed exchange traded fund launched on 09/15/2005.