|Bid||21.12 x 1400|
|Ask||24.77 x 800|
|Day's Range||20.64 - 21.43|
|52 Week Range||15.49 - 28.98|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||-27.83%|
|Beta (5Y Monthly)||1.26|
|Expense Ratio (net)||0.38%|
The Federal Reserve took interest rates to near zero and Treasury yields are tumbling, putting added emphasis on steady streams of income, including monthly dividend ETFs.As their name implies, exchange-traded funds with monthly dividends deliver distributions each month, whereas many of their counterparts do so on a quarterly basis. For those new to the world of ETFs, it's commonplace that fixed income funds pay interest every month …But the universe of equity-based funds that are monthly dividend-payers is significantly smaller.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThen there's the matter of the weakening equity market. When it comes to dividends in the current climate, investors' priority shouldn't be how frequently the payouts arrive. Rather, it's the viability of those dividends and the company's ability to grow payouts.Taking those factors into consideration, let's examine a few of the best monthly dividend ETF options here, including the following: * WisdomTree U.S. Quality Dividend Growth Fund (NASDAQ:DGRW) * Nationwide Risk-Managed Income ETF (NYSEARCA:NUSI) * WisdomTree SmallCap Dividend Fund (NYSEARCA:DES)Let's get into why these funds may be worth considering, particularly at the monthly dividend ETFs that have been unfairly gutted relative to recent highs. Monthly Dividend ETFs to Buy: WisdomTree U.S. Quality Dividend Growth Fund (DGRW)Expense ratio: 0.28% per year, or $28 on a $10,000 investmentFirst, let's get the bad news out of the way. The WisdomTree U.S. Quality Dividend Growth Fund is off 29.64% just this month and resides 30.15% below its 52-week high. That slumped DGRW's yield to 2.82%, one of the highest such percentages for the fund since it came to market nearly seven years ago.Those percentages are ugly. No denying that, but among monthly dividend ETFs, DGRW has several perks. One that's particularly relevant in the current environment is what's NOT found in this fund. That being large exposure to the high-yielding energy and real estate sectors, two groups that appear poised for a spate of negative dividend action over the near-term. Those sectors combine for just 1.03% of DGRW's weight.On a related note, due to a methodology that is more about what a company's future dividend habits will be and less about what that company has done in the past, DGRW does an admirable job of not only identifying companies that can sustain payouts, but grow those dividends, too. * 10 Stocks to Buy as They Ride a Coronavirus Tailwind To the point of DGRW's sector allocations, the fund features a nearly 22% weight to technology stocks, one of the highest allocations to the group in the dividend fund category. Among the fund's top holdings are Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL), two companies with the balance sheets to not only weather a downturn, but continue growing dividends during rough times as well. Nationwide Risk-Managed Income ETF (NUSI)Expense ratio: 0.68%Keeping with theme of generating income from technology stocks, the Nationwide Risk-Managed Income ETF offers investors an interesting way of hedging long positions in funds tracking the Nasdaq-100 Index or stocks such as Apple and Microsoft.NUSI is a "rules-based options trading strategy that seeks to produce high income using the Nasdaq-100 Index," according to Nationwide.In plain English, NUSI generates income via covered call writing on the Nasdaq-100 and uses a portion of those proceeds to buy puts on that index, thereby giving investors a hedge.That doesn't mean NUSI is perfect. It's down 11.11% this month, but that's better than the 27.29% shed by the Nasdaq-100 and this monthly dividend ETF had a yield of 7.83% at the end of last year, well above the current yield of 0.87% on the Nasdaq-100. WisdomTree U.S. SmallCap Dividend Fund (DES)Expense ratio: 0.38%Small-cap stocks have been absolutely torched in the recent downturn with the Russell 2000 recently probing multi-year lows and is off about 40% this month, a decline mirrored by the WisdomTree U.S. SmallCap Dividend Fund.Recent weakness in the monthly dividend fund may be a case of the baby thrown out with the bath water because DES has a long history of being one of the higher quality options among small-cap funds. The issue today is DES being tarnished by talk that many smaller companies gorged on debt during the bull market and now face the specter of crimped balance sheets.That's probably true for some small-cap growth companies but DES dances between the quality and value factors, confirming that its recent bloodletting is perhaps a case of too much too soon. The risk here is DES's 27.11% weight to financials, the smaller ones of which are under interest rate pressure. * 10 Cheap Stocks to Buy Under $10 However, DES remains home to some credible takeover targets - assuming a recession is brief - and it's yield of nearly 4.10% is a whopper among small-cap funds even though it's not a yield-based strategy.Todd Shriber has been an InvestorPlace contributor since 2014. As of this writing, he owns shares of DES and DGRW. More From InvestorPlace * America's Richest ZIP Code Holds Wealth Gap Secret * 7 Stocks Insiders Are Buying Big Amid the Market Panic * 7 A-Rated Stocks to Buy After the Seismic Market Shift * 4 Dividend Stocks Worth a Look Now The post 3 Monthly Dividend ETFs for Reliable Income appeared first on InvestorPlace.
Assets in U.S. dividend exchange-traded funds (ETFs) have grown exponentially over the past decade. In 2009, America's dividend ETFs collectively held less than $20 billion. By September 2019, they had shot up to almost $200 billion.In good times and bad, dividend stocks act almost like rent checks, coming monthly or quarterly like clockwork. Many investors, whether you're a professional working on Wall Street or a regular Joe on Main Street, swear by them.Dividend ETFs take the strategy up a notch by providing investors with a diversified portfolio of dividend-paying stocks. This allows them to collect income without the additional research and trading complications that would come with buying dozens, if not hundreds, of individual components.If you're in this camp of income-minded set-it-and-forget-it investors, here are 10 dividend ETFs to buy and hold for the long haul. Several are dedicated specifically to dividends, while others simply hold dividend stocks as an indirect result of their strategy. But this is a collection of funds that are diversified by geography, style, size, sector and more, and thus can be held as a group or individually depending on your preferences, risk tolerance and investment horizon. SEE ALSO: The 20 Best ETFs to Buy for a Prosperous 2020
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[Editor's Note: This Article was originally published on Jan. 24, 2019. It has since been updated]Investors are seemingly always on a quest for a portfolio they deem to be "well-balanced." Fortunately for investors seeking balance, exchange-traded funds (ETFs) make that objective significantly easier and, in many cases, less expensive than other instruments.Many of the best ETFs are inexpensive, highly liquid and span asset classes and regions, helping investors ameliorate the dreaded home country bias. Of course, what makes a well-balanced portfolio for one investor may not be properly balanced to another, but conventional wisdom does dictate that a mix of bonds and equities is a sensible starting point.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFrom there, more aggressive investors can add in alternative asset classes, including commodities, something many of the best ETFs do in diversified fashion. * 10 Stocks to Buy That Could Be Takeover Targets In the search for balanced portfolios, here are some of the best ETFs to consider. ETFs to Buy: JPMorgan BetaBuilders U.S. Equity ETF (BBUS)Source: Shutterstock Expense Ratio: 0.02% per year, or $2 on a $10,000 investment.You may have recently heard that a pair of ETFs launched with expense ratios of 0%. The JPMorgan BetaBuilders U.S. Equity ETF (CBOE:BBUS) is not one of those funds, but of the ETFs with fees, the newly minted BBUS is the cheapest, charging a mere 0.02% per year.While BBUS is new (it debuted in late March), it is one of the best ETFs to act as a core building block for properly balanced portfolios. This fund holds over 620 stocks, providing investors with exposure to over 85% of the U.S. equity market. BBUS has over $30 million in assets under management, which is a decent start, but for investors that like big ETFs, expect BBUS's stature to soon increase as JPMorgan launches a robo-advisor platform. BBUS will be one of the cornerstones of that offering.BBUS allocates 21.5% of its weight to technology stocks while the healthcare and financial services sectors combine for 27.3% of the fund's roster. Investors that embrace this fund should expect long-term returns comparable to those generated by the S&P 500 or Russell 1000 indexes. iShares Core Total USD Bond Market ETF (IUSB)Expense Ratio: 0.06%As mentioned earlier, a well-diversified portfolio does not begin and end with stocks. It should include fixed-income exposure, too. The iShares Core Total USD Bond Market ETF (NASDAQ:IUSB) is one of the best ETFs for novice bond investors or those simply looking for broad-based, cost-efficient exposure to domestic bonds.The $3.57 billion IUSB, which tracks the Bloomberg Barclays U.S. Universal Index, is one of the best ETFs for bond investors seeking diversity and cost efficiencies. Home to nearly 7,900 bonds, IUSB is also one of the least expensive fixed income funds on the market today. * The 10 Best Stocks for 2019 -- So Far IUSB has a 30-day SEC yield of 2.9%, a 12-month yield of 3% and an effective duration of 5.22 years. Due to heavy exposure to U.S. Treasuries and other government agency debt, credit risk is minimal with this best ETF. Bonds with AAA ratings account for 61.54% of the portfolio. WisdomTree U.S. Quality Dividend Growth Fund (DGRW)Expense Ratio: 0.28%Sure, there are cheaper dividend funds on the market, but the WisdomTree U.S. Quality Dividend Growth Fund (NASDAQ:DGRW) is one of the best ETFs in this category. Dividends, particularly when reinvested, are vital to investors' long-term outcomes, making DGRW ideal for a broad swath of market participants, be they rookies, sophisticated players or retirement planners.There are dozens of dividend ETFs for investors to consider, but DGRW's fundamentally weighted methodology stands out from the pack. A case can even be made that is a dividend ETF Warren Buffett himself would enjoy."Return on equity (ROE) is a metric Buffett has written on extensively: it's a 'quality' indicator for stocks, reflecting how much profit a business earns relative to its net equity capital," according to WisdomTree research.DGRW's underlying index emphasizes "both ROE and return on assets (ROA) as part of the selection requirements. Using ROA as a screening criterion penalizes firms using leverage to drive ROE," notes the issuer.DGRW also pays a monthly dividend and is worth the cost of admission relative to its peer group. WisdomTree U.S. SmallCap Dividend Fund (DES)Expense Ratio: 0.38%Like its stablemate DGRW, the WisdomTree U.S. SmallCap Dividend Fund (NYSEARCA:DES) is one of the stars in its respective category. This is one of the best ETFs for income-hungry investors as well as those seeking exposure to smaller stocks because DES is historically less volatile than rival non-dividend small-cap funds."This portfolio targets dividend payers without incurring too much risk," said Morningstar in a recent note. "Although the fund doesn't screen its holdings for profitability or dividend sustainability, a few dividend cuts across its portfolio shouldn't significantly affect its performance because it is broadly diversified and skews toward larger, more-stable names in the small-value Morningstar Category."DES allocates nearly a third of its combined weight to industrial and consumer discretionary stocks while the real estate and financial services sectors combine for 26.3%. Plus, this has long been one of the best ETFs in the small-cap value space. * 6 Big Dividend Stocks to Buy as Yields Plunge "From its launch in June 2006 through April 2019, the strategy has topped the small-value category average and the Russell 2000 Value Index by 1.2 and 1.0 percentage points annually, respectively, with similar risk," according to Morningstar. "The fund's favorable stock exposure within the energy and consumer discretionary sectors contributed to most to its outperformance." Vanguard Total Corporate Bond ETF (VTC)Expense Ratio: 0.07%While it is important to remember that bonds are an important part of well-balanced portfolios, investors should also remember that they should be heavily allocated to U.S. government debt. That strategy limits credit opportunities and some of the potential added upside associated with corporate bonds.Put simply, the Vanguard Total Corporate Bond ETF (NASDAQ:VTC) is one of the best ETFs for investors seeking a massive bench of investment-grade corporate bonds across varying durations and maturities. VTC is classified as an intermediate-term bond fund, but it features exposure to short-, medium- and long-dated corporate debt with almost 6,000 holdings.VTC accomplishes those objectives in cost-effective fashion by holding Vanguard's three other corporate bond ETFs, which span the aforementioned maturity categories. Over 87% of VTC's holdings are rated A or Baa and it has an average duration of 6.9 years. Vanguard Total International Bond ETF (BNDX)Expense Ratio: 0.09%Keeping with the theme of using cheap bond ETFs to enhance portfolio diversity, there is the Vanguard Total International Bond ETF (NASDAQ:BNDX). BNDX is one of the best ETFs in the fixed income arena this year in terms of both performance and asset-gathering acumen.BNDX tracks the Barclays Global Aggregate ex-USD Float Adjusted RIC Capped Index and holds nearly 5,800 bonds with an average duration of 7.8 years. There are other benefits to owning international bonds beyond making a portfolio more diverse. * 7 Bank Stocks to Leave in the Vault A fund such as BNDX can help investors access potentially higher yields than are found on domestic government bonds, gain exposure to monetary policies that are not delivered by the Federal Reserve and the potential for higher returns. Over the past three years, BNDX has outperformed the Bloomberg Barclays Aggregate Bond Index by nearly 200 basis points. iShares Core MSCI EAFE ETF (IEFA)Expense Ratio: 0.08%The iShares Core MSCI EAFE ETF (CBOE:IEFA) is one of the best ETFs for investors looking to bring cost-effective international equity exposure to their portfolios. IEFA, one of the largest ex-U.S. equity funds in the world, reflects the valuation discounts associated with many ex-U.S. developed markets, including Europe."Europe offers attractive asset valuations compared to history, especially in risk assets," according to BlackRock. "Regional assets have cheapened further compared to a year ago as concerns about growth and politics increased. The exception to this are core government bonds, which we believe to be expensive compared to global peers."IEFA's largest country weight is Japan at 24.75%, but four of its top five geographic weights are European nations, positioning the fund to take advantage of a rebound in stocks across the pond."As downward revisions to growth start petering out and incoming activity data begin to show signs of life, European risk assets might get a boost this year as value equities benefit," according to BlackRock.As of this writing, Todd Shriber owned shares of DES and DGRW. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * The 4 FANG Stocks Won't Be Bitten By Regulation Threats * 10 Stocks to Buy That Could Be Takeover Targets * 4 Big Bank Stocks Rebounding Compare Brokers The post 7 Best ETFs for a Well-Balanced Portfolio appeared first on InvestorPlace.
This article was originally published on ETFTrends.com. The WisdomTree SmallCap Dividend Fund (DES) was one of the first exchange traded funds to pair dividends and small-cap stocks. In recent years, the small-cap arena has become increasingly fertile ground for dividend investors, but yields remain low on traditional small-cap benchmarks.