What Is the PEY ETF? A Complete Guide to Returns, Expense Ratio, Holdings, and Alternative ETFs
An ETF that invests in the 50 highest-yielding stocks among companies with 10 or more years of dividend growth. It seeks high income through a dividend-yield-weighted approach.
SubscribeWhat Is This ETF?
It tracks the NASDAQ US Dividend Achievers 50 Index and builds its portfolio from companies with a strict record of dividend growth. Rather than simply buying high-dividend stocks, it invests in companies with a proven ability to raise their dividends, which helps manage the risk of dividend cuts.
It suits income-focused investors who prefer stable dividend growers but also want a current dividend yield above the market average.
Launched by Invesco in 2004, it is a passively managed (index-tracking) ETF.
How Does It Invest?
| Item | Details |
|---|---|
| Tracked Index | NASDAQ US Dividend Achievers 50 Index |
| Management Style | Passive (dividend-yield weighted) |
| Rebalancing Frequency | Annually (March) |
| Dividend Frequency | Monthly |
| Total Expense Ratio | 0.68% |
The fund selects the 50 stocks with the highest dividend yields from the group of companies that have raised their dividends for 10 consecutive years. Because weights are set by dividend yield rather than market capitalization, it takes a contrarian tilt, giving higher weights to value-style stocks whose yields have risen because their share prices are undervalued.
- Composed solely of companies with a proven record of 10 or more years of dividend growth
- Differentiated weighting based on dividend yield rather than market capitalization
Size and Costs
Assets under management (AUM) stand at $1.2B, and the expense ratio is 0.68% per year.
Because it uses a dividend-yield weighting method, its current income yield tends to be higher than that of typical dividend growth ETFs, and its monthly distributions strengthen its cash-flow generation.
Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeAs changing interest rate conditions have highlighted the appeal of value stocks and high-dividend sectors, the fund has delivered a steady return profile, and its exposure to real assets and consumer staples has supported performance during inflationary periods.
Inflows continue from retirement savings and conservative investors who prioritize regular cash flow, and the fund is favored by smart-income money seeking both high dividends and dividend growth.
Strengths and Weaknesses
It is an efficient vehicle for pursuing high income through proven dividend growth stocks, but investors should be mindful of sector concentration and interest rate sensitivity.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products
While VIG and SCHD, shown in the table, focus more on dividend growth and company size, PEY places more weight on a relatively high current yield. It aims for more aggressive dividend income than VYM and also resembles high-dividend strategies such as DVY. If you want to reinforce quality metrics, comparing it with DFAC is also a good approach.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 SCHD | Schwab US Dividend Equity ETF | $36.02 | +0.5% | $122.7B | 0.06% | 2.92% | +32.5% |
 VIG | Vanguard Dividend Appreciation FTF | $251.84 | +0.8% | $117.1B | 0.04% | 1.45% | +15.1% |
 VYM | Vanguard High Dividend Yield Indx ETF | $164.99 | +0.9% | $83.2B | 0.04% | 2.23% | +16.1% |
 DFAC | U.S. Core Equity 2 Portfolio-ETF Class Shares | $45.17 | +1.0% | $49.1B | 0.18% | 0.87% | +15.1% |
 RDVY | First Trust Rising Dividend Achievers ETF | $80.30 | +1.2% | $25.6B | 0.47% | 0.85% | +18.2% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
 NSP | Insperity Inc | 0.10% | $50.08 | -1.6% | $1.9B | 722.7 | 4.79% |
 LYB | LyondellBasell Industries NV | 0.05% | $62.58 | +3.3% | $20.2B | 15.7 | 5.01% |
 RHI | Robert Half Inc | 0.08% | $42.22 | -1.9% | $4.3B | 34.8 | 5.04% |
 FLO | Flowers Foods Inc | 0.07% | $6.25 | -3.1% | $1.3B | 24.2 | 9.92% |
 PRGO | Perrigo Company plc | 0.06% | $16.55 | -1.7% | $2.3B | - | 7.01% |
 HPQ | HP Inc | 0.03% | $28.96 | +1.9% | $26.1B | 11.0 | 4.14% |
Investor Checkpoints
PEY is a specialized product that seeks a balance between high dividends and dividend growth, so before deciding to invest, use the key checklist below to confirm that it fits your income strategy.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 📈 Dividend Yield | Check the yield level against comparable dividend growth ETFs | High level |
| 📅 Dividend Frequency | Review the stability and sustainability of monthly dividend payments | Ongoing |
| 📊 Sector Composition | Check exposure to specific industries such as utilities and financials | Review suitability |
| 💸 Expense Level | Review whether operating costs are reasonable for a strategic index approach | Needs checking |
The dividend-yield weighting method can result in higher weights for stocks whose prices have fallen. You need the judgment to distinguish whether a price decline stems from deteriorating company fundamentals or from temporary undervaluation.
It is one useful option for investors seeking regular income from companies with stable dividend growth records. It is recommended for those who want to strengthen portfolio cash flow while building the defensive qualities of a value-oriented allocation.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
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