Please stay tuned for important disclosure information at the conclusion of this episode.

Happy holidays and welcome to Investing Insights. I'm your host, Ivana Hampton. This week, we're looking back at three discussions we held earlier this year about exchange traded funds

that income investors might find attractive. You'll hear from two Morning Start ETF specialists.

They're talking about dividend, bond, and cover call ETFs in 2025. Let's start with dividend

ETFs. This style of investing can focus on income or growth. The strategies can have

different risk-reward profiles. I sat down with Brian Armour in February. We discuss how certain

risk factors can affect dividend income. The director of ETFs and passive strategies research for

North America at Morningstar Research Services also spotlighted for dividend ETFs and passive strategies research for North America at Morning Star Research Services also

spotlighted for dividend ETFs that earn top marks for Morning Star.

Now, dividend investing can result in exposure to factors like value, quality, and low volatility.

Can you briefly explain, one, what is factor investing? And then where do

dividend ETFs typically land? Yeah. So factor investing is basically looking at the different

risk factors that affect a stock or are able to quantify for each stock or portfolio.

So when you talk about value, like what is the price relative to its fundamental value, like book value or earnings?

And then something like quality could be like how consistent is this company's earnings or, you know, how profitable is the company company and then low volatility is just a backward looking like how volatile was a stock um over over some trailing period and so um factor

investing is a useful way of just understanding the the risks the stock you own. And so dividend income strategies

tend to push into value and like higher yielding companies tend to be priced at a lower price

because there's less growth opportunities for those companies.

And value tends to run counter to quality in many instances.

And so dividend income tends to be higher in value, potentially higher in low volatility,

and then a little lower in quality.

And then dividend growth, a little bit higher in quality, but also pushes not as far towards value.

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