DIVZ

DIVZ: How A 0.65% Expense Ratio Undermines Growth And Quality

DIVZ is an actively managed large-cap value fund aiming to provide consistent exposure to low-volatility stocks with above-average dividend yields. I estimate its forward yield to be 2.92%. DIVZ has a high 0.65% expense ratio, and apart from reducing total returns, this article explains why it drives DIVZ's selection process, and not in a good way. Since fees directly reduce distributions, DIVZ can't afford to own as many lower-yielding but higher-quality and higher-growth stocks as lower-cost alternatives, particularly FDVV.