|Expense Ratio (net)||0.14%|
|Last Cap Gain||0.00|
|Morningstar Risk Rating||Below Average|
|Beta (5Y Monthly)||0.90|
|5y Average Return||N/A|
|Average for Category||N/A|
|Inception Date||Nov 15, 2006|
Mutual funds almost go hand-in-hand with retirement investing. And why not? The modern mutual fund predates exchange-traded funds (ETFs) by more than six decades. Most 401(k) plans hold nothing but mutual funds. So it's reasonable to link one with the other.But don't sleep on exchange-traded funds. As you'll soon find out, while many of the best ETFs out there are tactical strategies and great trading vehicles, some of them are dirt-cheap, long-term buy-and-hold dynamos that can give investors what they need in retirement: diversification, protection and income.Many (though not all) ETFs are simple index funds - they track a rules-based benchmark of stocks, bonds or other investments. It's an inexpensive strategy because you're not paying managers to analyze and select stocks. And it works. In 2018, the majority of large-cap funds (64.5%) underperformed Standard & Poor's 500-stock index - the ninth consecutive year that most of them failed to beat the benchmark.Today, we'll look at seven of the best ETFs for retirement. This small group of funds covers several assets: stocks, bonds, preferred stock and real estate. Which ones you buy and how much you allocate to each ETF depend on your individual goal, be they wealth preservation, income generation or growth. SEE ALSO: The Kip ETF 20: The 20 Best Cheap ETFs You Can Buy
The following is our latest Fund Analyst Report for Vanguard High Dividend Yield Index Inv VHDYX . Morningstar Premium Members have access to full analyst reports such as this for more than 1,000 of the largest and best mutual funds. Vanguard High Dividend Yield Index is one of the cheapest dividend strategies available. The fund fully replicates the FTSE High Dividend Yield Index, which targets stocks representing the higher-yielding half of the U.S. dividend-paying market, excluding REITs.
Editor's note: This story was previously published in March 2019. It has since been updated and republished.If you want your portfolio to hold the best Vanguard funds for 2019, you will want a diverse selection of funds that can perform in an uncertain environment of slowing growth.The best funds in 2019 will likely include defensive sector funds and high-quality dividend funds. If you want to diversify with bond funds, buying those that focus on short-term debt may be the best bet, if the Federal Reserve resumes raising rates.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Bank Stocks to Leave in the Vault Balanced funds can also be a good idea in 2019. With the Fed pausing its tightening campaign, investors at first cheered but may soon turn to fears of a recession. This makes for economic and market conditions that will continue to bring volatility and ultimate downside for stocks -- and the potential for bond prices to rise.In summary, diversification will likely beat narrow bets in 2019. With that backdrop, I give you the best Vanguard funds for 2019: Vanguard Wellington (VWELX)Expenses: 0.25%, or $25 for every $10,000 invested Minimum Investment: $3,000When uncertainty and volatility abound, long-term investors are wise to diversify with a well-managed, low-cost balanced fund like Vanguard Wellington (MUTF:VWELX).Source: Shutterstock Although 2018 ended on a negative note for stocks, equities can still have a positive 2019, assuming the current positive GDP forecasts hold. This environment is a good match for a moderate-allocation balanced fund like VWELX, which consists of roughly two-thirds stocks and one-third bonds.Among its stock holdings are high-quality large-caps like Microsoft (NASDAQ:MSFT), Verizon (NYSE:VZ) and JPMorgan Chase (NYSE:JPM). Bonds are a diversified mix with an average duration of 9.4 years. Vanguard Wellesley Income (VWINX)Expenses: 0.23% Minimum Investment: $3,000For investors who want to lean to the conservative side in 2019 or retirees who need income but minimal market risk, Vanguard Wellesley Income (MUTF:VWINX) is among the best in the mutual fund universe.Source: Shutterstock VWINX maintains an allocation of roughly one-third stocks and two-thirds bonds. If stocks enter into a full bear market in 2019, bond prices will likely rise as the Fed continues to pause its tightening campaign and the heavy fixed-income allocation in VWINX will minimize losses. * 7 Stocks to Buy for Monster Growth If you're looking for income, VWINX boasts a 3.4% 30-day SEC yield, which comes from quality dividend stocks like JPM, VZ and Johnson & Johnson (NYSE:JNJ). Vanguard High Dividend Yield Index (VHDYX)Expenses: 0.14% Minimum Investment: $3,000In volatile markets, investors often turn to high-quality stocks of dividend-paying companies, like the ones you'll find in Vanguard High Dividend Yield Index (MUTF:VHDYX).Source: Shutterstock When investors transition from the riskier growth stocks, small-caps and international stocks, they often turn to big U.S. blue-chip stocks that pay dividends. If stocks have a positive 2019, these quality stocks will be among the leaders, and a passively-managed fund full of them can be a smart move.VHDYX tracks the FTSE High Dividend Yield Index, which consists of 400 stocks of U.S. companies that pay larger-than-average dividends like JNJ, JPM and Exxon Mobil (NYSE:XOM). Vanguard Health Care (VGHCX)Expenses: 0.34% Minimum Investment: $3,000In times of uncertainty and market volatility, holding a defensive sector fund, such as Vanguard Health Care (MUTF:VGHCX) can be a smart move for diversifying a portfolio.Source: Shutterstock Although healthcare stock prices won't necessarily climb while those of major market indices fall, they do tend to hold their value better than other sectors during corrections. And if stocks are positive in 2019, your health sector fund can still capture that upside. * 7 Stocks to Sell Amid an Escalating Trade War Another benefit of holding VGHCX in what may be a risk-off environment is that the portfolio is light on the riskier biotechnology stocks. Most of the portfolio consists of managed care and big pharma names like UnitedHealth Group (NYSE:UNH), AstraZeneca (NYSE:AZN) and Bristol-Myers Squibb (NYSE:BMY). Vanguard Ultra-Short-Term Bond (VUBFX)Expenses: 0.20% Minimum Investment: $3,000If the Fed resumes its rate hikes, one of the best bond funds to hold will be Vanguard Ultra-Short-Term Bond (MUTF:VUBFX).Source: Shutterstock An ultra-short-term bond fund like VUBFX is a smart choice for investors who want to minimize interest-rate risk or for those looking for opportunities to get greater yields than money market funds.The reason why short-term bond funds can be smart in a rising-rate environment is that prices for longer maturities fall harder than shorter maturities. This is because bond investors don't want the older, lower-yielding bonds when the newer, higher-yielding bonds are available. Vanguard Inflation-Protected Securities (VIPSX)Expenses: 0.2% Minimum Investment: $3,000Bonds prices tend to fall in inflationary environments but a good TIPS fund like Vanguard Inflation-Protected Securities (MUTF:VIPSX) can perform relatively well in such an environment.Source: Shutterstock Treasury inflation-protected securities, aka TIPS, are Treasury bonds in which the principal value adjusts up or down based on inflation, as measured by the CPI. * 5 Safe Stocks to Buy This Summer While stocks and some bond funds can lose in an inflationary/rising-rate environment, funds like VIPSX can eke out gains. Keep in mind, however, that TIPS funds can still decline in value when rates are rising, although not typically as much as funds that invest in conventional bonds. Vanguard Prime Money Market (VMMXX)Expenses: 0.16% Minimum Investment: $3,000In an environment where neither stocks nor bonds look attractive, investors are wise to allocate a portion of their portfolio to highly liquid money market Vanguard funds like Vanguard Prime Money Market (MUTF:VMMXX).Source: Shutterstock Rising rates are not good for equities or fixed income. However, higher rates do generally increase the yields for money market funds. Therefore, a diversified Vanguard portfolio in 2019 will include VMMXX.VMMXX currently has a compound yield of 2.49% and beat the major indices for both stocks and bonds last year.As of this writing, Kent Thune did not personally hold a position in any of the aforementioned securities, although he holds VWINX in some client accounts. Under no circumstances does this information represent a recommendation to buy or sell securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks That Should Be Worried About a Data Dividend * 5 Cheap ETFs Worth Considering * 7 Cheap Stocks Under $5 That Could Soar Compare Brokers The post 7 Best Vanguard Funds for 2019 appeared first on InvestorPlace.
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.It's a big reason why assets in U.S. dividend exchange-traded funds (ETFs) have grown exponentially over the past decade. In 2009, U.S. dividend ETF assets were less than $20 billion. By the middle of 2018, they had increased to more than $170 billion.The reason: Dividend ETFs provide investors with a diversified portfolio of dividend-paying stocks that allows you to invest and collect income without having to do nearly the amount of research you'd need before buying a large number of the individual components.If you're in this camp of hopeful set-it-and-forget-it investors, here are seven dividend ETFs to buy and hold for the long haul. Diversified by geography, style, size, sector, etc., this collection of ETFs can be held as a group or individually depending on your preferences, risk tolerance and investment horizon. SEE ALSO: The 19 Best ETFs for a Prosperous 2019