iShares Select Dividend ETF (DVY): Complete Beginner's Guide
Last updated: March 2026 • BlackRock • High Dividend
Expense Ratio
0.38%
AUM
$20.0B
Dividend Yield
3.80%
Inception
2003
Beginner Score
9.5/10
What is iShares Select Dividend ETF?
DVY tracks the Dow Jones U.S. Select Dividend Index, focusing on U.S. companies with a strong track record of consistently paying dividends. It screens for dividend yield, payout ratio, and dividend growth history to find reliable income producers. The fund tends to favor utilities, financials, and consumer staples companies that prioritize returning cash to shareholders.
DVY is managed by BlackRock and has been available since 2003. With $20.0B in assets under management, it's a well-established fund with strong institutional backing. The fund charges an expense ratio of 0.38%, which means for every $10,000 you invest, you pay approximately $38 per year in management fees.
DVY at a Glance — Key Metrics
| Expense Ratio | 0.38% |
| Total Holdings | 100 |
| P/E Ratio | 15.5 |
| Beta | 0.78 |
| Dividend Yield | 3.80% |
| AUM | $20.0B |
| Inception Year | 2003 |
| Issuer | BlackRock |
Top 10 Holdings in DVY
DVY holds 100 different securities. Here are the largest positions that make up the core of this fund:
| # | Company | Ticker | Weight |
|---|---|---|---|
| 1 | Altria Group | MO | 2.50% |
| 2 | AT&T | T | 2.40% |
| 3 | Verizon Communications | VZ | 2.20% |
| 4 | International Business Machines | IBM | 2.00% |
| 5 | Dominion Energy | D | 1.90% |
| 6 | PPL Corporation | PPL | 1.80% |
| 7 | Citizens Financial Group | CFG | 1.70% |
| 8 | Kinder Morgan | KMI | 1.60% |
| 9 | KeyCorp | KEY | 1.50% |
| 10 | Principal Financial Group | PFG | 1.40% |
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DVY Performance History
Here's how DVY has performed over different time periods. Remember that past performance doesn't guarantee future results, but it gives you a sense of the fund's track record:
YTD
2.00%
1 Year
9.00%
3 Year
6.00%
5 Year
7.00%
10 Year
8.00%
Beginner Suitability Score: 9.5/10
Our proprietary Beginner Suitability Score evaluates ETFs based on five factors that matter most to new investors: fees, volatility, diversification, dividend history, and track record length.
DVY scores 9.5/10 because it has very low fees, shows lower-than-average volatility, offers broad diversification across 100 holdings, and has been available since 2003, giving it a proven track record.
How to Buy DVY — Step by Step
- Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
- Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
- Search for "DVY" — Use the search bar in your brokerage platform to find iShares Select Dividend ETF.
- Place your order — Choose "Market Order" for simplicity or "Limit Order" if you want to set a specific price. Enter how many shares (or dollar amount) you want to buy.
- Set up automatic investing — Most brokers let you schedule recurring purchases (e.g., $100/month on the 1st). This is dollar cost averaging in action.
Dollar Cost Averaging Into DVY
Here's what consistent monthly investing could look like over time, assuming an average annual return of 8% (approximate historical stock market average):
| Monthly | 10 Years | 20 Years | 30 Years |
|---|---|---|---|
| $100/mo | $18,417 | $59,295 | $150,030 |
| $250/mo | $46,041 | $148,237 | $375,074 |
| $500/mo | $92,083 | $296,474 | $750,148 |
*Projections assume 8% average annual return with monthly compounding. Actual returns will vary. Past performance doesn't guarantee future results.
Fee impact: With DVY's expense ratio of 0.38%, a $10,000 investment would lose approximately $3,173 to fees over 20 years compared to a zero-fee investment. This is significant — consider whether the fund's strategy justifies these costs.
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Pros and Cons of DVY
Pros
- ✓High dividend yield provides substantial income for retirees and income seekers
- ✓Dividend screening methodology focuses on consistency and sustainability of payments
- ✓Lower beta than the broad market offers more stability during downturns
- ✓Relatively concentrated portfolio of 100 proven dividend payers
Cons
- ✗Higher expense ratio of 0.38% eats into the income advantage compared to cheaper alternatives
- ✗Heavy utilities and financials weighting creates significant sector concentration
- ✗High-yield focus can lead to dividend trap exposure in companies with deteriorating fundamentals
DVY vs Similar ETFs
See how DVY stacks up against similar funds:
Frequently Asked Questions
Is DVY a good ETF for beginners?▾
DVY has a Beginner Suitability Score of 9.5/10 on our scale. This makes it a strong choice for new investors due to its low fees and broad diversification.
What is the expense ratio of DVY?▾
DVY has an expense ratio of 0.38%. This means for every $10,000 you invest, you pay approximately $38 per year in fees. This is considered very low and cost-efficient.
How much money do I need to invest in DVY?▾
You can invest in DVY with as little as $1 through brokers that offer fractional shares (like Fidelity, Schwab, or Robinhood). There is no minimum investment required beyond the share price itself, which changes daily. Dollar cost averaging — investing a fixed amount regularly — is a popular strategy.
Does DVY pay dividends?▾
Yes, DVY pays dividends with a current yield of approximately 3.80%. Dividends are typically paid quarterly and can be reinvested automatically through most brokers.
What are the top holdings in DVY?▾
The top holdings in DVY include Altria Group (2.50%), AT&T (2.40%), Verizon Communications (2.20%), and more. The fund holds 100 total positions, providing broad diversification across many companies.