121.00 -0.58 (-0.48%)
After hours: 6:57PM EST
|Bid||121.09 x 1000|
|Ask||121.82 x 800|
|Day's Range||121.46 - 124.21|
|52 Week Range||105.96 - 130.91|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||-1.90%|
|Beta (5Y Monthly)||0.90|
|Expense Ratio (net)||0.06%|
Looking for a steady income stream to provide stability in your portfolio? Here are five of the best dividend ETFs to invest in this year, ranked by assets.
After experiencing a tough 2018, Altria bought a 35% stake in Juul at a $38 billion valuation at the end of 2018. At the time it seemed like e-cigarettes’ explosive growth will continue uninterrupted and around 10% of the young adults said in surveys that they “regularly or occasionally” vape. These young adults were using […]
Enter the Vanguard Dividend Appreciation ETF (NYSE: VIG), the largest U.S. dividend ETF by assets. Additionally, VIG follows the NASDAQ US Dividend Achievers Select Index, which requires that member firms have dividend increase streaks of at least 10 years.
Exchange-traded funds (ETFs) are growing at an astronomical rate. U.S. assets are closing in on $4.25 trillion. The ETF share of total assets at investment firms has more than doubled to 17% from 8% at the start of the decade, while mutual funds have lost market share. The only problem with this explosive growth? The industry now boasts thousands of funds, making it difficult to determine the very best ETFs.But investors are getting smarter about how they use ETFs in their portfolios. "After a decade of market gains, ETFs now play a unique role for investors as the foundation of a portfolio and also as vehicles that enable investors to be nimble," says Kari Droller, who oversees third-party mutual funds and ETFs at Charles Schwab.We try to be nimble, too. Although a thorough review of the Kiplinger ETF 20 happens only once a year, we watch each fund closely. As you'll see below, we've noted where a couple of funds merit more scrutiny as interest rates stay steady and low. But for now, we're holding fast to our 20.Read on for more analysis of our Kiplinger ETF 20 picks, which allow investors to tackle various strategies at a low cost. SEE ALSO: The 20 Best ETFs to Buy for a Prosperous 2020
As global markets struggle with the rapidly-spreading coronavirus, dividend growth ETFs can help maintain steady income flows for investors.
After a stellar year, the SPDR S&P 500 ETF (SPY) continued to strengthen in 2020 and is already up 3.1% so far, breaking out with six new all-time highs in the first 12 trading days. Despite the strong gains, many investors still remain bullish on the equity market outlook. According to the survey, 76% of wealthy investors place a high grade on the U.S. economy, and there has been a 16% jump among investors whom expect the market to rise by as much as 5% this quarter.
There's nothing particularly wrong with mutual funds. The investing structure has been a tried-and-true portfolio element for decades and has allowed plenty of individual investors to grow their wealth, gain diversification benefits and save for the future. And there are certainly plenty of good mutual funds out there. But these days, there is something better -- exchange-traded funds.So, there is a real reason why exchange-traded funds have taken the world by storm. Featuring rock-bottom fees, similar diversification benefits and even some hefty tax savings, low-cost ETFs are simply a better choice for many investors. And now with the elimination of trading fees at many major brokerages, dollar-cost averaging into low-cost ETFs is even easier.To that end, investors in some popular mutual funds could be better suited making the switch into ETFs. For investors in tax-deferred or tax-free accounts, the switch is easy. For investors in taxable accounts, you need to weigh the potential hit from the switch. However, in spite of that, the longer-term picture could justify selling your mutual funds and buying a low-cost ETF.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Small-Cap Stocks That Are Not Worth a Second Glance With that, here are some of the most popular and common mutual funds held by investors and great ETFs to replace them with. SPDR DoubleLine Total Return Tactical ETF (TOTL)Replaces: PIMCO Total Return (PTTRX)Expense Ratio: 0.65%, or $65 on a $10,000 investment.For investors looking at low-cost ETFs, switching out one former bond king for another may be a good idea. When Bill Gross was at the helm of the PIMCO Total Return (MUTF:PTTRX), the go-anywhere bond fund was one of the largest in the world, returns were great and the mutual fund was found in nearly every 401k plan. However, since Gross left, PTTRX has begun to sputter. There's been a few management changes and assets have bled lower. These days, PTTRX is a shell of its former self.And that's why the SPDR DoubleLine Total Return Tactical ETF (NYSEARCA:TOTL) is a wonderful replacement.TOTL is run by new bond king Jeff Gundlach. And like PTTRX, TOTL is considered a multi-sector bond fund. Gundlach is able to buy mortgage-backed securities, Treasury debt, bank loans, commercial mortgage securities, investment-grade corporate bonds and even emerging market debt. The beauty is that TOTL has a svelte $3.4 billion in assets compared to PTTRX's nearly $68 billion. This allows Gundlach to be pretty nimble and make smaller bets that pay off big. The results are beating PTTRX's returns over the last three years. Moreover, TOTL comes without sales loads and a low expense ratio of 0.65% or $65 per $10,000 investment.All in all, investors holding PTTRX may be better suited swapping out for the smaller and better-performing rival. Vanguard Dividend Appreciation ETF (VIG)Replaces: Vanguard Equity Income Fund Admiral Shares (VEIRX)Expense Ratio: 0.06%Low-cost ETFs to buy can provide a better return in many instances versus actively managed funds with similar strategies. Case in point, the Vanguard Equity Income Fund Admiral Shares (MUTF:VEIRX). VEIRX offers investors a way to play dividend stocks and the income they generate. The fund is managed by both Wellington Management and Vanguard's Quantitative Equity Group. The two use slightly different methods. But the general idea is to buy strong dividend-paying stocks with plenty of quality behind them. And the fund has been great for investors -- netting a 13% average annual return over the last five years.But how would you like get a more than a full percentage point per year in return? Swapping out VEIRX for the indexed Vanguard Dividend Appreciation ETF (NYSEARCA:VIG) can make that happen. VIG follows those stocks that have long histories of increasing their dividends every year. This strategy provides a way for investors to grow their income potential and benefit from great long-term returns. VIG still throws off plenty of dividend income. The best part is that the ETF has managed to outperform the actively managed mutual fund by a decent margin.The reason? Expenses. As one of the lowest-cost ETFs to buy on the market, VIG's cheap 0.06% expense ratio creates zero drag on returns. Also creating zero drag is the fact that the mutual fund needs to hold some cash for investor redemptions. The combo creates a slightly better return for a similar strategy. * 10 Cheap Stocks to Buy Under $10 In this case, investors looking for dividend income would do well to swap out VEIRX for VIG. In the end, the exchange-traded fund's total returns are better. iShares Core S&P 500 ETF (IVV)Replaces: iShares S&P 500 Index Fund (BSPAX)Expense Ratio: 0.04%Index funds are great. Expensive index funds are not so great. And sometimes, it's the same asset manager that's pulling the wool over investors' eyes. A prime example is the iShares S&P 500 Index Fund (MUTF:BSPAX).Despite having the "iShares" name, BSPAX is a mutual fund. A few years ago, BlackRock (NYSE:BLK) rebranded all its index funds under the banner. And there is nothing wrong with BSPAX. It tracks the bread-and-butter S&P 500 and is found in many 401k plans as the broad index option. So, it's easy to see why all share classes of the fund have more than $22 billion in assets. The problem for BSPAX and other share classes is that there literally is a cheaper, identical version of the fund from BlackRock -- the iShares Core S&P 500 ETF (NYSEARCA:IVV).Both IVV and BSPAX track exactly the same basket of stocks. The difference is that the mutual fund charges 0.35% in annual fees. IVV only charges 0.04%. Since they are identical, IVV will always outperform BSPAX. This outperformance grows when you factor in that some share classes of the mutual fund charge front-end loads and require certain cash holdings. Because of this, there is almost zero reason to hold BSPAX if you can make the switch. Over the longer haul, IVV will provide a better return for holding literally the same basket of stocks.So even among index funds within the same asset manager, low-cost ETFs are often the better choice for portfolios. At the time of this writing, Aaron Levitt did not hold any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The Top 5 Dow Jones Stocks to Buy for 2020 * 7 Fintech ETFs to Buy Now for Fabulous Financial Exposure * 3 Tech Stocks to Play Ahead of Earnings The post 3 ETFs to Buy Instead of Popular Mutual Funds appeared first on InvestorPlace.
[Editor's note: This article is regularly updated to include the most relevant information available.]If you're looking for the best Vanguard ETFs to buy for 2020, you'd be wise to consider those that can perform well in a slowing economy.There are plenty of arguments out there about the timing of the next recession, but there's no question that growth in the U.S. economy, as measured by gross domestic product (GDP), will be moderating, if not slowing, in 2020.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHere are signs of a slowing economy in 2020: * Yield Curve Inversion: When the yields on 10-year Treasury bonds fall below the yields on the 2-year Treasury note, it indicates that fixed-income investors foresee slow rates of growth and low inflation in the years ahead. The last time this occurred was June 2007. Based on history, stock performance is mixed after a yield curve inversion but this asset class tends to remain positive for about 18 months. Counting from August 2019, that makes January 2021 a possible beginning for the next downturn. * Weaker Leading Economic Indicators: In the second half of 2019, key economic indicators showed that the U.S. economic growth rate declined for the first time since May 2016. There are 10 components included among the key leading economic indicators, such as manufacturers new orders, building permits and consumer expectations. * Declining U.S. Gross Domestic Product (GDP): The first three quarters of 2019 showed declining GDP. The Conference Board's Dec. 11, 2019 update showed expectations for growth to remain the same or slightly higher (up to 2%) in Q4. The expectation is for GDP to hover around 2% in 2020. * 8 of the Strangest Stocks Worth Your Time In summary, it's wise for investors to expect, at best, a continuation of slow growth but no acceleration in 2020. At worst, investors should expect declining GDP throughout the year, nearing recession by Q1 2021. With that backdrop, and in no particular order, here are seven of the best Vanguard ETFs to buy in 2020: Best Vanguard ETFs for 2020: Vanguard S&P 500 ETF (VOO)Expenses: 0.03%, or $3 annually for every $10,000 investedIf you want to build around a core holding that could be a smart bet in 2020, and in the long run, Vanguard S&P 500 ETF (NYSEARCA:VOO) is arguably the best ETF to do the job.Picking the best sectors for 2020 could prove to be challenging because of uncertainties over trade and the presidential election. Because of this, an ETF like VOO, which is diversified across all sectors, can be a wise choice for the foreseeable future.Being cap-weighted, shareholders of VOO will naturally get more exposure to mega-caps like Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL). But having additional exposure to roughly 500 U.S. large-cap stocks will add to VOO's appeal in 2020. Vanguard Health Care ETF (VHT)Expenses: 0.10%After lagging the S&P 500 in 2019, health sector funds like Vanguard Health Care ETF (NYSEARCA:VHT) may be due for a comeback in 2020.The primary drag on performance for health stocks in 2019 was the fear and uncertainty over the Medicare-for-All idea promoted by Democratic presidential nominees, Elizabeth Warren and Bernie Sanders. By the end of 2019, the fear began to fade and price declines for healthcare stocks appeared to be overdone. Combine this oversold status with their defensive qualities in the face of a potential slowing economy, health sector funds look attractive in 2020.To get broad exposure to the healthcare industry, ETFs like VHT are smart plays. VHT's multi-cap exposure means top holdings are large health stock names like Johnson & Johnson (NYSE:JNJ), Merck & Co (NYSE:MRK) and UnitedHealth Group (NYSE:UNH). But investors also get exposure to small- and mid-cap health stocks. Vanguard Consumer Staples ETF (VDC)Expenses: 0.10%Investors expecting a slowing economy in 2020 may like what they see in Vanguard Consumer Staples ETF (NYSEARCA:VDC).Although economic recession does not appear likely in 2020, it's also unlikely the economy will expand, especially in the absence of further rate cuts from the Fed or fiscal stimulus from new legislation.When the economy is moderating or slowing, consumers tend to become more selective in their buying habits. While they may buy less non-essential items, such as automobiles, apparel and entertainment, consumers will continue to buy the necessary consumer staples, such as food, beverages and household goods. * 5 Semiconductor Stocks Soaring Higher To take advantage of potential strength in the consumer staples sector, investors can gravitate toward equities like VDC top holdings Coca-Cola (NYSE:KO), Procter & Gamble (NYSE:PG), and Walmart (NYSE:WMT). Vanguard High Dividend Yield ETF (VYM)Expenses: 0.06%There's no question that the U.S. economy is in the mature phase of the business cycle, which can be a favorable environment for funds like Vanguard High Dividend Yield ETF (NYSEARCA:VYM).Investments that tend to perform well in the mature phase of the business cycle include dividend paying stocks, such as VYM top holdings JPMorgan Chase (NYSE:JPM), JNJ and PG. In a year that may bring the economy to the edge of recession, high value, high-yielding stocks like these can bring a combination of growth and relatively stability your portfolio needs.Since VYM tracks the FTSE High Dividend Yield Index, shareholders will get exposure to more than 400 U.S. dividend paying stocks. Vanguard Dividend Appreciation ETF (VIG)Expenses: 0.06%The best dividend funds to buy for both 2020 and the long term are arguably those that hold stocks of companies that consistently increase their dividends. To get broad exposure to these stocks, investors can buy Vanguard Dividend Appreciation ETF (NYSEARCA:VIG).Although Vanguard ETFs that provide high yields can be smart plays now, funds like VIG can be smarter, especially if you're looking for a combination of short-term and long-term benefit. In the short term, meaning the year 2020, value-oriented stocks that pay dividends are wise additions to a portfolio. For the long run, holding stocks that increase their dividends is also a wise move. * The Top Tech From CES 2020 VYM tracks the NASDAQ US Dividend Achievers Index, which emphasizes large U.S. stocks that have a record of growing dividends year over year. Therefore shareholders get access to dividend stocks like MSFT, PG and WMT. Vanguard FTSE Emerging Markets ETF (VWO)Expenses: 0.12%Having been in an extended slump, which was aggravated by trade tensions in 2019, funds like Vanguard FTSE Emerging Markets ETF (NYSEARCA:VWO) could see a comeback in 2020.VWO tracks the FTSE Emerging Markets All Cap China A Inclusion Index, which means that shareholders get a diversified mix of large-, mid- and small-cap stocks of companies located in emerging markets all around the world. Top five countries, from highest to lowest allocation percentage, are China, Taiwan, India, Brazil and South Africa.The underlying index is cap-weighted, which means the holdings are less geared toward mid- and small-caps and more concentrated in large-cap emerging market stocks like Tencent Holdings (OTCMKTS:TCEHY), Alibaba (NYSE:BABA) and Taiwan Semiconductor Manufacturing (NYSE:TSM). Vanguard Total Bond Market ETF (BND)Expenses: 0.035%Bonds aren't expected to beat stocks in 2020, but the best bond fund to hold will likely be Vanguard Total Bond Market ETF (NASDAQ:BND).The Federal Reserve Board has signaled that it will not move on rates in 2020. The monetary policy impact on bond prices will not be significantly positive or negative, but investors are wise to expect a below-average year for fixed income. At the same time, monetary policy has not exactly been predictable over the past year.Because of the potential for a lackluster year for bonds, combined with uncertainty in the direction of rates, investors are wise to stick with a broadly diversified bond fund with extremely low expenses like BND. Since the fund tracks the Bloomberg Barclays U.S. Aggregate Float Adjusted Index, shareholders are essentially holding the entire U.S. bond market.As of this writing, Kent Thune did not personally hold a position in any of the aforementioned securities. However, he holds VOO 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 * 8 of the Strangest Stocks Worth Your Time * 7 Stocks to Buy That Trump's Tax Cut Truly Rewarded * 5 Stocks That Could Double in 2020 The post 7 Best Vanguard ETFs for 2020 appeared first on InvestorPlace.
If you're looking to upgrade your portfolio in the new year, you'd be wise to look first at Vanguard - the proprietor of low-cost, high quality funds. The best Vanguard funds tend to have similar qualities. They're inexpensive. They're easy to understand. And when they're managed funds, they're managed well.Jack Bogle, who the world lost about a year ago, will long be remembered for his passionate advocacy of low-cost investing in general, and the index fund in particular. Pursuing those two ideas relentlessly, he built Vanguard into one of the world's largest investment companies with more than $5.5 trillion in assets.But Bogle possessed another talent that went virtually unnoticed. He was a superior judge of actively managed mutual funds.Consider: When Vanguard opened for business on May 1, 1975, Wellington Management - where Bogle had worked previously - was already on board. Vanguard's Wellington (VWELX) is now one of the nation's largest and most successful balanced funds with more than $110 billion in assets. And Wellington remains the subadvisor on several more Vanguard funds.In the mid-1980s, Bogle heard that several top managers wanted to leave the American Funds, which had a reputation of being such a good place to work that no one ever left. But those managers did leave, to start Primecap Management. Vanguard Primecap (VPMCX) and later Vanguard Primecap Core (VPCCX) were launched. They've been two of the most successful mutual funds ever.Today, however, we're going to look at the best Vanguard funds to buy for 2020. While Bogle is no longer with us, his firm still is renowned for both its skilled management and its dirt-cheap indexed products. Here, we'll look at some of each that should serve investors well in the new year. SEE ALSO: The 30 Best Mutual Funds in 401(k) Retirement Plans
Income investors today can target yields from several types of dividend ETFs that go well beyond straight-up income stock investing.
In the third quarter, global dividends hit a record, but the annual growth has decelerated sharply, signaling that "a marked slowdown is under way."
Investors looking for safe assets amid a volatile market driven by coronavirus fears. Morningstar Global ETF's Ben Johnson says these ETF picks could help hedge your portfolio. He joins Yahoo Finance's Seana Smith on The Ticker.