An ETF Ready for Market Turmoil

(TheStreet) -- With Alcoa's (NYSE: 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 (NYSE: 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 (NYSE: LO), McDonalds (NYSE: MCD), Chevron (NYSE: CVX) and Caterpillar (NYSE: 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 (NASDAQ: 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 (NYSE: SPY) and outperforming mid-cap focused products such as the iShares S&P 400 MidCap Index Fund (NYSE: IJH). Continue reading the article.