|Bid||67.99 x 800|
|Ask||77.14 x 1100|
|Day's Range||73.04 - 73.38|
|52 Week Range||61.84 - 74.10|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||1.75%|
|Beta (5Y Monthly)||0.89|
|Expense Ratio (net)||0.25%|
The Fed cut rates and signaled a pause in the easing cycle. This may result in a market crash in the medium term. Investors thus see safety in these ETFs.
Yes, seven exchange traded funds (ETFs) is a lot to own, so you don't need to own each and every fund that will be highlighted here. However, with 10-year Treasury yields currently residing around 1.50%, dividend ETFs have now have added allure.As seasoned investors know, dividends, particularly when reinvested over a long-term time frame, say 30 years, can play pivotal roles in boosting investor outcomes. In fact, over a span such as three decades, it is probable that those reinvested payouts will account for close to or as much of an investor's total returns as will appreciation in the underlying security.Other data points speak to the efficacy of dividend ETFs right here, right now. While many market observers are obsessing over the inverted yield curve, there's another yield scenario to monitor: the S&P 500 dividend yield moving above the yields on 10- and 30-year bonds. That usually bodes well for stocks.InvestorPlace - Stock Market News, Stock Advice & Trading Tips"Even though the ominous implication from the current inverted 2-year/10-year yield curve scenario has generated concern among investors, history offers a bit of encouragement," said CFRA Research. "Since WWII, whenever the S&P 500's month-end yield exceeded the yield of the 10-year note, the S&P 500 was higher 12 months later by an average 22% and gained in price in 74% of all 31 observations." * 7 Deeply Discounted Energy Stocks to Buy With those considerations in mind, here are some of the best dividend ETFs for long-term investors to consider. WisdomTree U.S. Quality Dividend Growth Fund (DGRW)Source: Who is Danny / Shutterstock.com Expense ratio: 0.28%The WisdomTree U.S. Quality Dividend Growth Fund (NASDAQ:DGRW) is one dividend ETF that checks many, if not all of the boxes investors look for with dividend ETFs that are slated to be core, long-term holdings.While DGRW is a dividend growth strategy, it does not focus on superficial metrics, such as dividend increase streaks. If it did that, it likely would not have a 22% weight to the technology sector, one of the largest weights to that group among any domestic dividend ETF. Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL) combine for 10.3% of DGRW's weight.I'll try to boil this dividend ETF's methodology down into simple terms: the foundation underlying DGRW looks for traits that could be signals of a company's ability to continue paying AND raising dividends. So a company's past dividend history is less important here than its potential trajectory going forward."The current balanced make-up between strong profitability metrics and discounted relative valuations for WTDGI, largely achieved by avoiding the more expensive non-dividend payers, gives us confidence in the merits of this approach for a core U.S. equity allocation going forward," said WisdomTree. ProShares S&P 500 Dividend Aristocrats ETF (NOBL)Source: Shutterstock Expense ratio: 0.35%The ProShares S&P 500 Dividend Aristocrats ETF (CBOE:NOBL) is one of the dividend ETFs investors should consider if they want overt dedication to dividend increase streaks. NOBL follow the S&P 500 Dividend Aristocrats Index, which only includes stocks that have boosted payouts for 25 consecutive years.That's exclusive territory because even with some new additions to the fold earlier this year, NOBL holds just 57 stocks with a weighted average market value of $78.59 billion. The emphasis on increase streaks is nice, but what's really alluring about NOBL is its ability to be less volatile and perform less poorly when broader markets decline, something the dividend ETF has proven adept at in its almost six years on the market. Plus, NOBL isn't a high-yield, making it appealing for long-term investors looking to avoid financially strained companies. * 7 Best Tech Stocks to Buy Right Now "The richest dividend yields can point to firms with weak or declining profits, which could threaten the sustainability of the dividend and, more importantly, the price of the stock," according to Morningstar. "Aggressively chasing yield can also increase exposure to value investment style risk, as the highest-yielding stocks tend to be deep-value names. When value stocks are out of favor, that tilt can hurt performance." Vanguard International Dividend Appreciation ETF (VIGI)Source: Shutterstock Expense ratio: 0.25%The international counterpart to the wildly popular Vanguard Dividend Appreciation ETF (NYSEARCA:VIG), the Vanguard International Dividend Appreciation ETF (NASDAQ:VIGI) is a fine idea for investors looking for an international dividend ETF. And that is something income investors should do because there are some solid ex-US dividend growth markets and there are plenty of markets outside the U.S. with higher yields than are found on the S&P 500."This low-cost fund prioritizes dividend growth over yield, which emphasizes highly profitable firms that should hold up better than most during market downturns and offer attractive long-term returns," said Morningstar in a recent note . VIGI has a dividend increase requirement of seven years, which can be somewhat limiting in the international arena and the fund mixes developed and emerging markets exposure, though it tilts heavily to the former. WisdomTree U.S. SmallCap Quality Dividend Growth Fund (DGRS)Source: Shutterstock Expense ratio: 0.38%Small caps are often an underappreciated part of the dividend story, but the WisdomTree U.S. SmallCap Quality Dividend Growth Fund (NASDAQ:DGRS) can help investors gain a refreshed view of garnering income from smaller companies.DGRS is the small-cap counterpart to the aforementioned DGRW and uses a similar methodology to its large-cap counterpart. That emphasis on quality is particularly important at a time when many small-cap companies are taking on increasing debt, prompting concerns that small caps could lead another market decline.This dividend ETF would not be immune from such a scenario, but it would likely be less volatile and perform less poorly because while many small-cap companies aren't profitable, many DGRS components are. * 5 Retail Stocks That Belong on Your Shopping List Today "The growth factor ranking is based on long-term earnings growth expectations, while the quality factor ranking is based on three-year historical averages for return on equity and return on assets," according to WisdomTree. WisdomTree U.S. MidCap Dividend Fund (DON)Source: Shutterstock Expense ratio: 0.38%For investors seeking a mid-cap dividend ETF, the original is a winning bet over the long-term and the WisdomTree U.S. MidCap Dividend Fund (NYSEARCA:DON) is the original in this category. DON has a nifty distribution yield of 3.28%, far superior to what investors will find on traditional large- and small-cap benchmarks.DON's underlying index is "dividend weighted annually to reflect the proportionate share of the aggregate cash dividends each component company is projected to pay in the coming year, based on the most recently declared dividend per share," according to WisdomTree.DON does an admirable job of mixing cyclical and defensive sectors as the consumer discretionary, real estate, industrial and financial services sectors combine for combine for over 58% of DON's weight. Like the other WisdomTree dividend ETFs highlighted here (DGRW, DGRS), DON pays a monthly dividend for an even steadier income stream. VictoryShares Dividend Accelerator ETF (VSDA)Source: Shutterstock Expense ratio: 0.35%An oft-overlooked name in the dividend ETF conversation, the VictoryShares Dividend Accelerator ETF (NASDAQ:VSDA) takes a unique approach to generating equity income. VSDA is a dividend growth fund, not a high-yield play.VSDA "offers exposure to large-cap U.S. stocks, that feature not only a history of increasing dividends, but which also possess the highest probability of future dividend growth. It seeks to provide exposure to dividend growth, rather than yielding, offering a potential diversification benefit to high dividend yielding alternatives, particularly in a rising rate environment," according to Victory Capital Management. * 7 Triple Threat Growth Stocks to Buy for the Long Term Up 23.15% year-to-date, good for one of the best performances among dividend ETFs, VSDA allocates 25.53% of its weight to industrial stocks while technology and the two consumer sectors combine for nearly half the funds weight. VSDA's performance and methodology could and probably should lead to this ETF shedding its anonymous existence in the future. FlexShares Quality Dividend ETF (QDF)Source: Shutterstock Expense ratio: 0.37%The FlexShares Quality Dividend ETF (NYSEARCA:QDF) emphasizes quality, which is pivotal in identifying securities with the potential for long-term dividend growth. QDF's methodology features a dividend quality scoring system aimed at identifying companies with strong balance sheets. That methodology also mixes yield and dividend growth scoring, giving QDF a yield of 2.70%, which is decent by today's standards."This fund won't offer the highest yield in the category, but its yield has consistently topped that of the Russell 1000 Value Index. From its inception in December 2012 through March 2019, this fund's yield averaged 3.6%, about 40% higher than the yield of the Russell 1000 Value Index," according to Morningstar.Additionally, QDF employs a management efficiency scoring system in an effort to highlight management teams that are committed to maintaining sound balance sheets and doling shareholder rewards. This dividend ETF doesn't grab a lot of headlines, but it has $1.6 billion in assets under management and its foundation is highly suitable for long-term investors. QDF is nearly seven years old and has regularly topped large-cap domestic value funds over that time.Todd Shriber owns shares of DGRW. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Deeply Discounted Energy Stocks to Buy * 7 Stocks to Buy In a Flat Market * 10 Stocks to Buy to Ride China's Emerging Wealth The post 7 Dividend ETFs to Own for the Next 30 Years appeared first on InvestorPlace.
Plenty of dividend investors know about the Vanguard Dividend Appreciation ETF (NYSE: VIG), the largest domestic dividend exchange traded fund by assets. VIGI, which is more than three years old, follows the NASDAQ International Dividend Achievers Select Index. VIGI “applies additional filters to eliminate stocks that may not be able to sustain their dividend growth,” said Morningstar in a recent note.
When it comes to building a portfolio, Vanguard ETFs and funds are often the top draws for investors. And there's a good reason for that. The firm and investment pioneer John Bogle created the idea of the index fund back in the 1970s. Moreover, the asset manager's philosophy stems from low-cost investing. So, naturally, Vanguard ETFs are some of the least expensive funds to own. When putting all the pieces together, it becomes really easy to see why Vanguard ETFs have attracted billions of dollars' worth of assets from investors both big and small.The question is which Vanguard funds make sense for you?The firm has a line-up of 80 different ETFs and the bulk of those offerings can be a bit heavy. For example, the Vanguard S&P 500 ETF (NYSEArca:VOO) holds more than $106 billion in assets, while the Vanguard FTSE Emerging Markets ETF (NYSEArca:VWO) holds roughly $62 billion. As a result, just a few Vanguard ETFs get most of the press. That's a shame as the firm's low-cost and index-hugging mantra extends to the rest of its ETF line-up as well.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * The 10 Biggest Announcements From Apple WWDC 2019 With that, here are three wonderful, but commonly overlooked Vanguard ETFs that should be right at home in your portfolio. Vanguard Extended Market ETF (VXF)Source: Shutterstock Over the long haul, small- and mid-cap stocks have long outperformed their bigger counterparts. However, most investors still remain woefully underweight smaller stocks and finding successful individual winners here can be incredibly difficult. This is where Vanguard ETFs can come to the rescue.The Vanguard Extended Market ETF (NYSEARCA:VXF) allows investors to tap into both small- and mid-cap stocks at the same time with one ticker. VXF tracks the S&P Completion Index. As the name implies, the fund owns everything that isn't in the large-cap focused S&P 500. And we're talking literally everything. VXF currently holds more than 3,260 different small- and mid-cap stocks. When you combine the fund with large-cap holdings, you basically have the U.S. stock market covered. The best part is, by using this ETF, the volatility and single-company risks are minimized to almost zero. With it, investors can instantly overweight the economies real growth engines.It turns out this is a powerful thing to do.When it comes to Vanguard ETFs, VXF has been a top performer. Over the last ten years, the fund has averaged a 16.61% annual total return. That's not too shabby by any means. And as a Vanguard fund, VXF is pretty cheap to own. Expenses for the ETF clock in at just 0.07%- or just $7 per $10,000 invested.In the end, VXF does everything a Vanguard ETF should do. That's broad indexing a rock-bottom price. Vanguard Mortgage-Backed Securities ETF (VMBS)Source: Grab Media When it comes to bonds, Treasury securities are often the first stop for investors and there are plenty of Vanguard ETFs looking at these. However, there is a way to get a slightly higher yield and still keep that government guarantee. We're talking about mortgage-back securities or MBS bonds.Mortgage-backed securities are bonds secured by home and other real estate loans. There are all different flavors of these, but the vast bulk of them are residential-focused and issued by federal government agencies like Ginnie Mae (GNMA) or government sponsored-enterprises Fannie Mae (FNMA), or Freddie Mac (FHLMC). Moreover, MBS bonds typically pay slightly more than comparable Treasury bonds thanks to the higher risk that you or I could default on our mortgages or pay them back earlier. However, GNMA bonds are backed by the full faith and credit of the U.S. government, while the recession taught us that the government will bail out Freddie and Fannie when the water's get rough.With that, the Vanguard Mortgage-Backed Securities ETF (NYSEARCA:VMBS) could be a good bet for investors looking for a bit more. VMBS tracks Bloomberg Barclays U.S. Mortgage-Backed Securities Float Adjusted Index -- which only focuses on U.S. agency mortgage bonds. None of the funny stuff. As a result, the ETF has been pretty steadfast since inception and yields a healthy 3.02%. * The 10 Best Stocks for 2019 -- So Far By using the Vanguard ETF, investors can get access to an esoteric asset class for a cheap 0.07% in expenses. Vanguard International Dividend Appreciation ETF (VIGI)Source: Shutterstock With $34 billion in assets, the Vanguard Dividend Appreciation ETF (NYSEARCA:VIG) is a star player among Vanguard ETFs. 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 provides with great long-term returns.But it's not U.S. stocks that benefit from growing dividends, international ones also win here.Which is why the smaller and often ignored Vanguard International Dividend Appreciation ETF (NYSEARCA:VIGI) can be a great compliment to the more popular VIG.VIGI also tracks a basket of large-cap stocks that have increased their dividends consistently over the last seven years. This time, the ETF combs both non-U.S. developed and emerging markets to find its dividend champions -- currently at a 75%/25% spilt between developed and emerging market stocks. The top 400 stocks are included in the index.This provides a way for investors to not only score some much-needed international exposure but also income growth as well. Currently, VIGI yields about 1.89%. However, that yield could be worth even more over the long haul. As foreign currencies fluctuate against the U.S. dollar, a drop in the dollar would boost the Vanguard ETFs underlying yield, as weaker local currencies convert into the stronger dollar.All in all, VIGI should belong in your portfolio just as much as VIG. Expenses run a cheap 0.25%.Disclosure: At the time of writing, Aaron Levitt did not hold a position in any of the ETFs mentioned. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 6 Retailers Including Disney Agree to Ditch On-Call Scheduling * The 10 Best Stocks for 2019 -- So Far * 7 Small-Cap ETFs to Buy Now Compare Brokers The post 3 Wonderful, But Ignored Vanguard ETFs appeared first on InvestorPlace.
Editor's note: This story was previously published in February 2019. It has since been updated and republished.Many folks infer an element of royalty when they hear the word "aristocrat." While the U.S. is a democracy, not a monarchy, there are plenty of ways for dividend investors to become aristocratic in their own right.Several exchange-traded funds (ETFs) track indices that are known as dividend aristocrats indices. The alluring thing about dividend aristocrats ETFs is that these funds emphasize dividend growth, not yield. High yields, while seductive, have some drawbacks investors should consider.InvestorPlace - Stock Market News, Stock Advice & Trading TipsDividend growth can be a sign that a company has a sound balance sheet and the capacity to continue delivering steady payout increases whereas some high-yield companies could be in financial distress and close to cutting their payout. * 10 Great Stocks to Buy on Dips For investors looking to put the potency of dividend growth to work in their portfolios, here are some of the most royal names among dividend aristocrats ETFs. SPDR S&P Dividend ETF (SDY)Expense ratio: 0.35% per year, or $35 on a $10,000 investment.The SPDR S&P Dividend ETF (NYSEARCA:SDY) is the original dividend aristocrats ETF and one of the largest U.S. dividend ETFs of any variety. SDY follows the S&P High Yield Dividend Aristocrats Index, which mandates that member firms have minimum dividend increase streaks of 20 years."Due to the index screen for 20 years of consecutively raising dividends, stocks included in the Index have both capital growth and dividend income characteristics, as opposed to stocks that are pure yield," according to State Street.While SDY's index implies it is a high-yield benchmark, the fund's dividend yield of 2.43% is not alarmingly high and implies plenty of room for continued dividend growth. Likewise, this dividend aristocrat ETF is not excessively allocated to high-yield sectors as utilities and real estate stocks combine for less 17% of the fund's weight. ProShares S&P 500 Dividend Aristocrats ETF (NOBL)Expense ratio: 0.35% per yearThe ProShares S&P 500 Dividend Aristocrats ETF (CBOE:NOBL) is the ETF that tracks the S&P 500 Dividend Aristocrats Index, also known as THE dividend aristocrats index. That index requires member firms to have boosted payouts for at least 25 consecutive years.A benefit of dividend aristocrats ETFs that should not be overlooked is reduced volatility. Both NOBL and SDY have less volatile than the S&P 500 over the past three years. Additionally, dividend aristocrats ETFs can expose investors to reduced downside when stocks decline. While the S&P 500 slumped 4.60% last year, NOBL was lower by just 3.30%. * 7 Strong Buy Stocks That Tick All the Boxes While NOBL is not the most adventurous fund on the market, this dividend aristocrats ETF makes a lot of sense for younger investors that can reinvest dividends. Over the past three years, NOBL is up 43% with dividends reinvested compared to 34.30% without reinvested dividends. SPDR S&P Global Dividend ETF (WDIV)Expense ratio: 0.40% per yearOften overlooked in the dividend aristocrats ETF conversation, the SPDR S&P Global Dividend ETF (NYSEARCA:WDIV) can be seen as the global complement to the aforementioned SDY.WDIV follows the Global Dividend Aristocrats Index, which mandates a minimum dividend increase streak of at least a decade.That index "includes the top 100 qualified stocks with the highest indicated dividend yield, with no more than 20 stocks selected from each country and 35 stocks from each GICs sector," according to State Street.WDIV, which yields 3.82%, provides exposure to almost 20 countries, the bulk of which are developed markets. Canada and the U.S. combine for over 42% of this dividend aristocrats ETF's geographic exposure. ProShares S&P MidCap 400 Dividend Aristocrats ETF (REGL)Expense ratio: 0.40% per yearThe epitome of an overlooked asset class, mid-cap stocks are also overlooked when it comes to dividends, but that should not be the case. There are several dedicated mid-cap dividend funds, but the ProShares S&P MidCap 400 Dividend Aristocrats ETF (CBOE:REGL) is the dividend aristocrats ETF in that group.REGL follows the S&P MidCap 400 Dividend Aristocrats Index, a derivative of the S&P MidCap 400 Index. This dividend aristocrats ETF requires its components to have minimum dividend increase streaks of 15 years. That is a stringent requirement for small stocks and as such, REGL has a smaller roster of just 49 holdings.Like its large-cap brother NOBL, REGL can help investors weather market storms. Last year, this dividend aristocrats ETF lost just 3.30% while the S&P MidCap 400 plunged 11.30%. REGL allocates over 45% of its combined weight to financial services and industrial stocks. ProShares MSCI Europe Dividend Growers ETF (EUDV)Expense ratio: 0.55% per yearIn the strictest sense of being a dividend aristocrats ETF, the ProShares MSCI Europe Dividend Growers ETF (CBOE:EUDV) is not one of those funds simply because the ETF does not track a dividend aristocrats index. Overlook that technicality and investors will find a viable income-generating avenue to Europe.EUDV's underlying index requires a minimum dividend increase streak of 10 years, which is an important trait considering plenty of European companies cut dividends during the region's sovereign debt crisis earlier this century. Just 35 companies meet the requirements for admission into EUDV.Many Europe dividend ETFs are heavily allocated to the U.K. and Switzerland. EUDV obliges as those countries combine for over 51% of the fund's weight. France, which saw record dividend growth in 2018, is EUDV's second-largest geographic exposure at 11.70%.EUDV is ahead of the S&P Europe 350 Index by 400 basis points over the past year. Invesco Dividend Achievers ETF (PFM)Expense ratio: 0.55% per yearThe Invesco Dividend Achievers ETF (NASDAQ:PFM) is not a dividend aristocrats ETF, but it does offer quality exposure to domestic large-caps with dividend increase streaks of at least a decade.There is often some intersection of dividends and the value factor, but PFM does allocate over 20% of its weight to growth stocks. Eight of PFM's top 10 holdings are members of the Dow Jones Industrial Average. With the dividend increase streak requirement of 10 years, PFM is heavy on sectors found in traditional dividend aristocrats ETFs, including consumer staples and industrials.The rub with PFM is its high fee. A slew of dividend growth strategies, including dividend aristocrats ETFs, can be had with much lower expense ratios. Vanguard International Dividend Appreciation ETF (VIGI)Expense ratio: 0.25% per yearThe Vanguard International Dividend Appreciation ETF (NASDAQ:VIGI) is not a true dividend aristocrats ETF, but as the international answer to the popular Vanguard Dividend Appreciation ETF (NYSEARCA:VIG), VIGI does provide exposure to stocks with penchants for steadily boosting payouts. Keeping with Vanguard's tradition of low-cost leadership, VIGI is one of the most cost-effective international dividend strategies on the market today.VIGI is a blend of developed and emerging markets dividend payers, so a relevant comparison is the MSCI All-Country ex-US Index, a benchmark the Vanguard fund has trailed over the past three years. However, over the past years, VIGI is beating that benchmark with a little less volatility.VIGI holds 357 stocks with a median market capitalization of $41.4 billion. India is the fund's largest emerging market weight at 14.1% while France and the U.K. combine for 23.6%.As of this writing, Todd Shriber did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks That Won Super Bowl Sunday * 7 High-Yield ETFs for Brave Investors * 10 F-Rated Stocks That Could Break Your Portfolio Compare Brokers The post Are These 7 Dividend Aristocrats ETFs Fit for a King? appeared first on InvestorPlace.