Opal Dividend Income ETF

DIVZ

Market cap $189M

OPAL Dividend Income ETF (DIVZ) is rated a hold, as it fails to deliver on promises of low volatility, high dividends, and high conviction. DIVZ's volatility and drawdown are only marginally lower than VOO, while its high turnover and expense ratio erode total returns. The fund's defensive sector tilt and lower valuations do not translate into meaningful risk reduction or superior risk-adjusted performance versus the S&P 500.

The Opal Dividend Income ETF has a concentrated portfolio of 30 dividend stocks selected based on quality and valuation. DIVZ has a focus on consumer staples and strong value characteristics. Distribution history shows a concerning downtrend, yet the fund reaches its objective of cutting volatility while keeping a decent total return.

Here are five dividend ETFs that are outpacing the broader market this year and are considered solid options in uncertain markets.

DIVZ is an actively managed fund comprised of 25-35 U.S. securities with high cash flow, stable revenue streams, and disciplined capital reinvestment procedures. DIVZ's expected dividend yield is 3.26%, though it would be better if it weren't for the fund's high 0.65% expense ratio. Further asset growth is needed to reduce that fee. However, DIVZ is the only large-cap value ETF that ranks above-average on beta, dividend yield, forward P/E, and one-year estimated earnings growth.

DIVZ focuses on blue chip dividend companies. It follows a concentrated, more active approach. Opal Dividend Income ETF is a solid pick for folks wanting to earn some cash now and see their investment grow later.

DIVZ is an actively managed fund designed to deliver an above-average dividend yield with less volatility than broad market funds. I estimate its forward yield at 2.87%, which pays monthly. Since my review one year ago, DIVZ's fundamentals relative to other dividend funds have improved. It's now much more balanced on growth, value, and volatility, though quality remains an issue. Adding three semiconductor stocks boosts DIVZ's growth potential, and although it has a negative impact on dividend yield, I believe it's in the best interests of shareholders.

During the past week, in the wake of the Exchange conference, launches of new ETFs started to pick up again from their recent lull. A total of seven funds rolled out during the week, while several issuers announced or completed ETF closures.

During the week, several new ETFs debuted on the U.S. market, but the ETF industry was fairly quiet overall. Just five funds launched from issuers including KraneShares, Morgan Stanley subsidiary Eaton Vance, Direxion, and American Beacon.