An ETF Ready for Market Turmoil

(TheStreet) -- With Alcoa's AA analyst beating quarterly report behind us, we are now in the full swing for what is shaping up to be an optimistic earnings season. Investors looking for a way to invest in this fast-paced time for the market should look to a strong, stable, and diversified fund designed to track U.S. equities. The iShares Dow Jones Select Dividend Index Fund DVY is one of my favorite ETFs which meet these criteria. I currently carry this fund in a number of my client and subscriber ETF portfolios, including ETF Action. Because it is designed to track a basket of 100 well-known companies hailing from a across the investment spectrum, DVY will benefit from a positive round of earnings. Among the fund's top positions are household names such as Lorrilard LO, McDonalds MCD, Chevron CVX and Caterpillar CAT. DVY does not particularly depend on the performance of these few holdings, however. In total, the fund's top 10 positions account for less than 20% of the fund's total portfolio. The largest percentage of DVY's index is comprised of large names such as those listed above and Morningstar MORN considers the fund to be large-cap value oriented. However, DVY also sets aside a considerable portion of its assets for companies considered midcap. This has allowed the fund's year-to-date performance in 2010 to fall between those of dedicated large cap funds such as SPDR S&P 500 ETF SPY and outperforming mid-cap focused products such as the iShares S&P 400 MidCap Index Fund IJH. Continue reading the article.