New Dividend ETF Debuts Ahead of Fed Decision — Is KDVD the SMID-Cap Investment Investors Are Looking For?
Launch of Keeley Dividend ETF: Gabelli Funds has introduced the Keeley Dividend ETF (KDVD), focusing on small- and mid-cap dividend stocks, aiming for income and long-term growth, while waiving the management fee for the first year.
Market Context and Fed Anticipation: The ETF launch coincides with a week of speculation around a potential Federal Reserve rate cut, with high expectations for a 25-basis point reduction as the S&P 500 reaches new highs.
Investment Strategy and Market Conditions: The KDVD fund is designed to capitalize on attractive valuations in SMID-cap equities and the lagging performance of dividend strategies, positioning it well for renewed interest in dividend-paying stocks.
Sector Performance and Index Changes: The S&P 500 is set to include new companies, which may trigger buying activity, while the health care sector shows strong performance, driven by major companies and medical device ETFs.
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- Market Opportunities: Investors may find renewed opportunities in previously recommended stocks from healthcare, oil services, and consumer staples sectors.
- Signs of Momentum: These stocks are showing signs of renewed momentum, suggesting potential upside for investors.
- Sector Rotation: The leadership in these sectors has already rotated, indicating a shift in market dynamics.
- Investor Consideration: Investors are encouraged to take a fresh look at these stocks as they may present attractive investment options.

- Healthcare Stock Performance: After two years of significant underperformance, healthcare stocks managed to keep pace with the broader market in 2025.
- Market Comparison: The performance of healthcare stocks in 2025 indicates a recovery trend compared to previous years.

Launch of Keeley Dividend ETF: Gabelli Funds has introduced the Keeley Dividend ETF (KDVD), focusing on small- and mid-cap dividend stocks, aiming for income and long-term growth, while waiving the management fee for the first year.
Market Context and Fed Anticipation: The ETF launch coincides with a week of speculation around a potential Federal Reserve rate cut, with high expectations for a 25-basis point reduction as the S&P 500 reaches new highs.
Investment Strategy and Market Conditions: The KDVD fund is designed to capitalize on attractive valuations in SMID-cap equities and the lagging performance of dividend strategies, positioning it well for renewed interest in dividend-paying stocks.
Sector Performance and Index Changes: The S&P 500 is set to include new companies, which may trigger buying activity, while the health care sector shows strong performance, driven by major companies and medical device ETFs.

Healthcare Stocks Momentum: Several non-biotech healthcare stocks are gaining momentum, breaking out of bases and establishing themselves as leaders in the sector.
Technical Indicators: These stocks are showing improving volume patterns, accelerating relative strength, and clean technical setups, indicating strong performance potential.
Market Rotation: As buyers shift focus to areas with sustained upside, these healthcare stocks are well-positioned to continue their upward trajectory.
Future Performance Outlook: The current trends suggest that these medical technology, services, and equipment stocks could deliver standout performance in the coming weeks.
ETF Performance: The iShares U.S. Medical Devices ETF is underperforming, down approximately 1.7% in Monday afternoon trading.
Weakest Components: Notable declines among ETF components include Axogen, which fell by about 4.9%, and Procept Biorobotics, down by about 4.2%.
Market Context: The article provides insights into the performance of specific ETFs and their components, reflecting broader market trends.
Author's Perspective: The views expressed in the article are those of the author and do not necessarily represent Nasdaq, Inc.

Sector Performance: The health care sector, particularly medical devices, is showing signs of recovery, with the SPDR Health Care Select Sector ETF (XLV) and biotech stocks performing well, while Idexx Labs (IDXX) has reached all-time highs.
Stock Analysis: Steris (STE), a leader in sterilization and infection prevention, is highlighted as a strong investment opportunity, showing a favorable risk/reward setup with potential gains of 20%-25% as it breaks above key resistance levels.
Market Trends: The medical device sector is gaining traction, with Steris outperforming the sector average, indicating a rotation of investor interest towards this area.
Investment Advice: The content emphasizes the importance of setting risk parameters and suggests consulting a financial advisor before making investment decisions, as the information provided is general and not tailored to individual circumstances.







