This is the top performing dividend fund this year, according to Morningstar. Here's its 'secret sauce'

The Capital Group Dividend Value ETF has a total return of 16.37% year to date.

The Capital Group Dividend Value ETF has a "secret sauce" that led it to outperform its peers this year, according to Morningstar. The fund, ticker

is the top performing dividend fund so far this year, said Bryan Armour, Morningstar's director of passive strategies research for North America. It has a 30-day SEC yield of 1.76% and a total return of 16.37% year to date. "The core premise of this strategy is targeting high-quality companies that have consistently paid out dividends for a decade plus, which is a really strong strategy over a long term. It has worked really well in the past decade plus," Armour said.

Capital Group's largest exchange traded fund, is one of the first six ETFs the firm launched in February 2022. It now has $2.8 billion in assets under management and primarily focuses on U.S. large-cap, investment-grade rated companies, said Jacob Gerber, investment director at Capital Group. It has a 0.33% expense ratio.

's net asset value, the sum of all its assets minus liabilities and the metric Morningstar used to determine its status, is up 16.39% in 2023.

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