If you're interested in broad exposure to the Large Cap Value segment of the US equity market, look no further than the iShares Select Dividend ETF (DVY), a passively managed exchange traded fund launched on November 3, 2003.
The fund is sponsored by Blackrock. It has amassed assets over $23.43 billion, making it one of the largest ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Value stocks are known for their lower than average price-to-earnings and price-to-book ratios, but investors should also note their lower than average sales and earnings growth rates. Considering long-term performance, value stocks have outperformed growth stocks in almost all markets; however, they are more likely to underperform growth stocks in strong bull markets.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.38%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 3.3%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Financials sector -- about 26.3% of the portfolio. Utilities and Consumer Staples round out the top three.
Looking at individual holdings, Pfizer Inc (PFE) accounts for about 2.3% of total assets, followed by Altria Group Inc (MO) and Verizon Communications Inc (VZ).
The top 10 holdings account for about 18.23% of total assets under management.
Performance and Risk
DVY seeks to match the performance of the Dow Jones U.S. Select Dividend Index before fees and expenses. The Dow Jones U.S. Select Dividend Index measures the performance of a selected group of equity securities issued by companies that have provided relatively high dividend yields on a consistent basis over time.
The ETF has added roughly 14.68% so far this year and is up roughly 20.11% in the last one year (as of 07/13/2026). In the past 52-week period, it has traded between $133.88 and $159.81.
The ETF has a beta of 0.66 and standard deviation of 13.54% for the trailing three-year period, making it a medium risk choice in the space. With about 106 holdings, it effectively diversifies company-specific risk.
Alternatives
iShares Select Dividend ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, DVY is a reasonable option for those seeking exposure to the Style Box - Large Cap Value area of the market. Investors might also want to consider some other ETF options in the space.
The Schwab U.S. Dividend Equity ETF (SCHD) and the Vanguard Value Index Fund ETF Shares (VTV) track a similar index. While Schwab U.S. Dividend Equity ETF has $98.37 billion in assets, Vanguard Value Index Fund ETF Shares has $187.28 billion. SCHD has an expense ratio of 0.06% and VTV charges 0.03%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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iShares Select Dividend ETF (DVY): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).