Dividend ETF

Any exchange-traded fund that seeks to provide high pidend yields by investing in a basket of high-pidend paying common stocks, pferred stocks or REITs. There are pidend ETFs that contain only U.S. domestic stocks and global pidend ETFs, which have an international focus. The indexes used to create pidend ETFs vary by fund manager or custodian, but most contain stocks with a high level of liquidity and above-market pidend yields.

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Taobiz explains Dividend ETF

Although pidend ETFs are passively managed around an index, that index may be the result of certain quantitative screens such as companies with a history of increasing their pidends, or larger blue-chip companies with a higher level of perceived safety. The expense ratios of pidend ETFs should be comparable to, or lower than, the cheapest no-load mutual funds with similar investment objectives. As with all ETFs, pidend ETFs can be traded intraday. These types of funds may be part of the core portfolio of an income-seeking or generally risk-averse stock investor.