89.72 +0.02 (0.02%)
Pre-Market: 8:01AM EDT
|Bid||82.53 x 1100|
|Ask||90.10 x 1400|
|Day's Range||0.00 - 0.00|
|52 Week Range|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.89|
|Expense Ratio (net)||0.06%|
Bank of America believes that the S&P 500 will close 2019 unchanged, but see dividend payers as superior to bonds for the short and long terms.
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
Ten-year Treasury yields closed at a paltry 1.49% on Tuesday, so it's not particularly surprising some investors are clamoring for high dividend strategies and doing so with exchange traded funds. What ...
Editor's note: This story was previously published in March 2019. It has since been updated and republished.The universe of exchange-traded funds (ETFs) is awash in low-fee products, and the space is growing as issuers reduce their fees to lure investors.Income-seeking investors do not have to pay up to access high-dividend ETFs. In fact, numerous high-dividend ETFs can be inexpensive, which is an important point for income investors looking to keep more of those dividends and a higher share of their invested capital. High-dividend ETFs are often embraced by long-term investors and over the long-term, lower fees can mean better outcomes for investors.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOver the past several years, data confirm that when it comes to adding new assets, the best ETFs are usually those with annual fees of 0.20% or less. Plenty of high-dividend ETFs fit into that category, making it a cost-effective method for thrifty investors to access broad baskets of dividend stocks. * 10 Marijuana Stocks That Could See 100% Gains, If Not More Here are some high-dividend ETFs, with very low fees, for income-minded investors to consider. iShares Core High Dividend ETF (HDV)Source: Shutterstock Expense Ratio: 0.08%, or $8 annually per $10,000 investmentMany high dividend ETFs weight components by yield, a strategy that has some drawbacks. Those disadvantages include vulnerability to rising interest rates and the potential for exposure to financially challenged companies that may have trouble maintaining and growing dividends.The iShares Core High Dividend ETF (NYSEARCA:HDV) has a 12-month dividend yield of 3.23%, which is well above the S&P 500 and 10-year Treasuries. However, this high-dividend ETF follows the Morningstar Dividend Yield Focus Index, which screens companies for financial health, giving the fund a quality look.With an annual fee of just 0.08%, HDV is one of the cheaper high dividend ETFs on the market today. That low fee coupled with its sector allocations make HDV ideal for conservative investors. The healthcare, consumer staples, telecom and utilities sectors, four of HDV's top five sector weights, can all be considered defensive groups. SPDR Portfolio S&P 500 High Dividend ETF (SPYD)Source: Shutterstock Expense Ratio: 0.07%The SPDR Portfolio S&P 500 High Dividend ETF (NYSEARCA:SPYD) is one of the least expensive dividend ETFs on the market, high dividend or otherwise. The ETF tracks the S&P 500 High Dividend Index, the high-dividend offshoot of the traditional S&P 500.SPYD's yield requirement gives this high-dividend ETF a focused roster of just 80 stocks, but the 12-month dividend yield of 4.5% makes this high-dividend ETF appealing for income investors relative to standard broad market funds. * 10 Undervalued Stocks With Breakout Potential SPYD relies heavily on high-income sectors that have shown historical vulnerability to rising interest rates. The real estate and utilities sectors combine for almost 35% of this high dividend ETF's weight. Invesco Dow Jones Industrial Average Dividend ETF (DJD)Source: Shutterstock Expense Ratio: 0.7%The Invesco Dow Jones Industrial Average Dividend ETF (NYSEARCA:DJD) is a yield-weighted approach to the venerable Dow Jones Industrial Average. What this high-dividend ETF does is weigh the 30 Dow stocks by their trailing 12-month dividend, not price, as the traditional Dow does.DJD's yield focus makes IBM(NYSE:IBM) the high dividend ETF's largest holding. DJD's largest sector weight is technology, and the fund devotes just 11.67% to industrials.While DJD appears to be a high-dividend ETF, the fund offers significant dividend growth potential because many of the Dow's 30 member firms have payout-increase streaks that can be measured in decades. Invesco S&P 500 Quality ETF (SPHQ)Source: Shutterstock Expense Ratio: 0.16%With a distribution rate of just 1.6%, the Invesco S&P 500 Quality ETF (NYSEARCA:SPHQ) does not scream "high dividend ETF." SPHQ's underlying index, the S&P 500 Quality Index, does not even emphasize dividends.Rather, that benchmark focuses on firms "that have the highest quality score, which is calculated based on three fundamental measures, return on equity, accruals ratio and financial leverage ratio," according to Invesco. While SPHQ is not explicitly a high -dividend fund, reliable, growing dividends are often a hallmark of companies meeting the standards of the quality factor. * 10 Cheap Dividend Stocks to Load Up On With a combined weight of nearly 40% to the technology and consumer services sectors, SPHQ has the feel of a growth ETF, but that means this fund also pairs well with more traditional high-dividend ETFs, such as some of the funds highlighted above. Vanguard High Dividend Yield ETF (VYM)Source: Shutterstock Expense Ratio: 0.06%Home to $22.8 billion in total net assets, the Vanguard High Dividend Yield ETF (NYSEARCA:VYM) is one of the largest dividend ETFs of any variety. It is not unreasonable to believe that VYM's name frames the fund as a high-dividend ETF, but a yield of 3.07% is not alarmingly high.More importantly, VYM is not overly dependent on rate-sensitive sectors. This high-dividend ETF features no real estate exposure and the bond-esque telecom and utilities sectors combine for just 13.3% of VYM's weight.Nearly a quarter of the fund's holdings hail from the industrial and healthcare sectors. Financials, a sector that has been a major driver of S&P 500 dividend growth over the past year, is this high dividend ETF's largest sector exposure at 18.6%. JPMorgan U.S. Dividend ETF (JDIV)Source: Shutterstock Expense Ratio: 0.12%The JPMorgan U.S. Dividend ETF (NYSEARCA:JDIV) is one of the youngest funds on this list, having debuted in late 2017, but it fits the bill as a cost-effective, high-dividend ETF.JDIV "utilizes a rules-based approach that adjusts sector weights based on volatility and yield and selects the highest yielding stocks," according to the issuer. * 10 Best S&P 500 Stocks to Buy For the Rest of 2019 With a 12-month yield of 3.56%, JDIV has high-dividend ETF credentials. JDIV's annual fee of 0.12% is quite low. Xtrackers MSCI EAFE High Dividend Yield Equity ETF (HDEF)Source: Shutterstock Expense Ratio: 0.20%The Xtrackers MSCI EAFE High Dividend Yield Equity ETF (NYSEARCA:HDEF) targets the MSCI EAFE High Dividend Yield Index, a benchmark that is a high-dividend derivative of the widely followed MSCI EAFE Index.While HDEF is a credible name among international high dividend ETFs, the laggard status of European stocks has hindered HDEF in recent months. On the more positive side of the ledger is ex-U.S. dividend growth and valuation opportunities across developed markets, two traits that speak to long-term opportunity with HDEF.As of this writing, Todd Shriber did not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 Shining Silver and Gold Stocks to Buy Right Now * 10 Best S&P 500 Stocks to Buy For the Rest of 2019 * The 7 Best Acquisitions of 2019 The post 7 Inexpensive, High-Dividend ETFs to Buy appeared first on InvestorPlace.
Vanguard reopened its Dividend Growth fund in early August, three years after closing it to new investors. But it’s not the fund giant’s only income-focused option.
One of the great things about Vanguard, aside from the low costs, is that when the issuer's index, mutual, and exchange traded fund (ETF) lineups are added, there are plenty of choices for wide varieties of investors, including those on the more risk-averse side of the ledger.Of course, costs, as in low costs, are one of the biggest reasons why Vanguard is a behemoth in the index fund universe and the second-largest U.S. ETF issuer. The company makes clear that it is on the investor's side when it comes to fees. The less investors lose to fees, the more they earn over long holding periods."Imagine you have $100,000 invested. If the account earned 6% a year for the next 25 years and had no costs or fees, you'd end up with about $430,000," said Vanguard. "If, on the other hand, you paid 2% a year in costs, after 25 years you'd only have about $260,000. That's right: The 2% you paid every year would wipe out almost 40% of your final account value. 2% doesn't sound so small anymore, does it?"InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Stocks Under $5 to Buy for Fall For conservative investors, the good news is that there are plenty of Vanguard funds that meet their criteria. Those offerings generally come with below-average fees. With that in mind, here are some of the best Vanguard funds for conservative investors to nibble at. Vanguard Dividend Growth Fund (VDIGX)Source: Shutterstock Expense ratio: 0.22% per year, or $22 on a $10,000 investment.Conservative investors often embrace dividend strategies. The recently-reopened Vanguard Dividend Growth Fund (MUTF:VDIGX) is an excellent avenue with which to express that view. This Vanguard fund's costs are decent, but more importantly, it's a no-load mutual fund with a track record of nearly three decades and a manager that has been in place for 13 years.There a few reasons why VDIGX is a compelling bet among Vanguard funds. First, the yield on 10-year Treasuries recently slipped below the dividend yield on the S&P 500, indicating investors continue to lack adequate compensation with government debt. Second, the market is clearly favoring defensive strategies, including steady dividend payers.Finally, some market observers believe swaps markets are not pricing in the right level of S&P 500 dividend growth for 2020. That growth is likely to come in better than currently expected, which could be a nice jolt for this Vanguard, assuming broader markets perform well in 2020. Vanguard Tax-Exempt Bond ETF (VTEB)Source: Shutterstock Expense ratio: 0.08%For conservative investors, it doesn't get much better than municipal bonds and the Vanguard Tax-Exempt Bond ETF (NYSEARCA:VTEB). It's Vanguard's initial foray into the world of municipal bond ETFs. It has been a successful one at that as highlighted by VTEB's $5.8 billion in assets under management. This Vanguard fund, which tracks the S&P National AMT-Free Municipal Bond Index, holds 4,202 muni bonds, a massive number relative to competing strategies.Yield usually isn't the name of the game with investment-grade munis, but this Vanguard fund's 2.30% yield is better than what investors get on 10-year Treasuries, plus VTEB's credit risk is almost non-existent as 92% of its holdings are rated AAA, AA, or A. * 10 Cheap Dividend Stocks to Load Up On This Vanguard fund has an average duration of 5.4 years. That puts VTEB in intermediate-term territory, which is just fine as it's likely the Federal Reserve cuts interest rates again this year, perhaps up to two more times. Vanguard Total International Bond Index Fund ETF (BNDX)Source: Shutterstock Expense ratio: 0.09%For the conservative investor looking for to diversify away from U.S. government debt, the Vanguard Total International Bond Index Fund ETF (NASDAQ:BNDX) is a fund that makes a lot of sense, and not just because the ETF has been on a streak of hitting record highs this year.With low credit risk, this Vanguard fund lobs off a 30-day SEC yield of 2.87%. Plus, many of the ETF's marquee country weights already have or are likely to join the U.S. in lowering interest rates, thereby increasing the value of the underlying bonds in this portfolio."Japanese bonds account for nearly 20% of the fund's while European debt represents nearly 57%. Japan won't be raising interest rates anytime and the European Central Bank (ECB) is pushing for easier monetary policy," according to Nasdaq.Another reason to like this Vanguard: it has a currency hedge, meaning it's designed to benefit from strength in the U.S. dollar or weakness in the currencies its holdings are denominated in. Vanguard Global ex-US Real Estate ETF (VNQI)Source: Shutterstock Expense ratio: 0.12%All that talk about lower interest rates, declining Treasury yields and investors playing defense is lifting domestic real estate funds, but don't sleep on international equivalents. The Vanguard Global ex-US Real Estate ETF (NASDAQ:VNQI), which features exposure to more than 30 countries, is up 10.2% year-to-date and yields 3.41%.VNQI "focuses on closely tracking the index's return, which is considered a gauge of overall non-U.S. real estate investment trusts' and operating companies' returns and offers high potential for investment growth; share value rises and falls more sharply than that of funds holding bonds," according to Vanguard. * 15 Growth Stocks to Buy for the Long Haul Home to 615 real estate stocks, this Vanguard fund can be considered an idea for conservative risk-takers due to its 20.40% exposure to emerging markets and its status as a mid-cap fund. Investors eyeing this Vanguard fund may want to wait because it allocates more than 12% of its weight to Hong Kong, a market battered in recent weeks due to geopolitical headwinds. The protests in Hong Kong are aimed at China, more than 10% of VNQI's weight, so wait a bit on a this Vanguard fund. Vanguard Total Corporate Bond ETF (VTC)Source: Shutterstock Expense ratio: 0.07%Among corporate bond ETFs, it's hard to find a larger lineup than the nearly 6,000 bonds featured in the Vanguard Total Corporate Bond ETF (NASDAQ:VTC). VTC arrives at that massive lineup by holding the three other Vanguard corporate bond ETFs. The Vanguard Short-Term Corporate Bond ETF (NASDAQ:VCSH) is VTC's largest holding at a weight of 36.20%While VTC's largest allocation is to a short-term Vanguard fund, its exposure to intermediate- and longer-dated corporate bonds is enough to prop its yield up to a decent 3.36%. And that's with nearly half its holdings rated AAA, AA or A.VTC has an average duration of 7.3 years, which is below the 9.08 years on the Markit iBoxx USD Liquid Investment Grade Index. With interest rates falling and VTC's lower duration relative to that rival index, the Vanguard fund is trailing that benchmark this year, but if VTC rebalances away from short-term corporates, its leverage to declining interest rates would increase. Vanguard Mid-Cap Value Index Fund Admiral Shares (VMVAX)Source: Shutterstock Expense ratio: 0.07%The Vanguard Mid-Cap Value Index Fund Admiral Shares (MUTF:VMVAX) carries a $3,000 minimum investment, but this Vanguard is worth the cost of admission for conservative investors willing to bet on a value rebound while getting some mid-cap exposure."Value stocks are those that may be temporarily undervalued by investors," according to Vanguard. "These companies typically grow at a slower pace than the broader group of mid-sized companies. One of the fund's key risks is that mid-capitalization stocks tend to be more volatile than large-company stocks." * 10 Best Stocks to Buy and Hold Forever This Vanguard fund holds 206 stocks, nearly a quarter of which hail from the financial services sector. Consumer staples and discretionary names combine for over 26% of VMVAX's roster. Vanguard High Dividend Yield ETF (VYM)Source: Shutterstock Expense ratio: 0.06%One of the largest and least expensive dividend ETFs, the Vanguard High Dividend Yield ETF (NYSEARCA:VYM) is a solid bet for yield seekers and dividend growth investors. That's the case because while VYM yields almost 3.05%, that yield isn't so high as to imply reason for concern. Additionally, VYM does not feature excessive allocations to high-yield sectors like real estate and utilities. That's good news because there are risks associated with high-yield stocks."Focusing on high-yielding stocks can be dangerous because these names may be under financial distress and at risk of cutting their dividend payments," according to Morningstar. "Many pay out a large share of their earnings and have a narrow buffer to cushion these payments if their business deteriorates compared with lower-yielding counterparts."VYM holds nearly 420 stocks, many of which have a value tilt. The near-term risk with this Vanguard fund is its almost 19% weight to the financial services sector, which is being pressured by falling interest rates.Todd Shriber doesn't own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post 7 Vanguard Funds for Conservative Investors appeared first on InvestorPlace.
As bond yields pulled back, income-minded investors can look to dividend exchange traded funds to generate some extra cash. For example, among the largest dividend-related ETFs on the market, the Vanguard ...
Once your account is up and running, many exchange traded funds offer simple but effective investing strategies for a remarkably low cost. Many investors know about low-cost index funds such as SPDR S&P 500 ETF (SPY) or any number of inexpensive ETFs from fund giant Vanguard.
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.
Many investors want a simple set-and-forget portfolio which will provide a balance between growth and income over time. And particularly if you are just beginning to build a portfolio, exchange-traded funds (ETFs) provide an easy and less expensive means to do this.Source: Shutterstock Inside my Profitable Investing, I have a large collection of model portfolios which are offered to achieve my goal of all-weather performance with lots of income and risk-controlled growth using stocks, bonds and funds -- including ETFs.For ETFs, your portfolio should be weighted to the best sectors of the U.S. markets, with shares in specific stock sectors that are geared to provide growth and income over time. As such, the stock ETF allocation should be set at 56% of your overall portfolio. I continue to recommend a roughly equal weighing for each of the funds you choose.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThis same method applies in the fixed-income sectors that are focused on corporate bonds and preferred stock, as well as the buoyant municipal bond markets. The fixed-income allocation should be set at 44% overall, including an 11% allocation to cash. And like with the stock-based funds, the individual fixed-income ETFs should be weighted evenly. * 7 Retail Stocks to Buy for the Second Half of 2019 And note, the municipal bond ETFs can be bought in tax-free accounts. Some brokerages give warnings about this, but there are no restrictions to doing it. You will give up some of the tax-free income advantage, but the total return prospects for this market remain compelling. Stock AllocationsI'll start with the Vanguard High Dividend Yield ETF (NYSEARCA:VYM), for access to the general market with a dividend focus. VYM continues to do well year to date with a return of over 14%. Expenses are 0.6%, or just $6 annually for every $10,000 invested.That is the baseline for the stock market. Now let's move into one of the more attractive and defensive market sectors. REITs continue to gain from improving property values and rising income, fueling increasing dividends. Step into this sector safely with the Vanguard Real Estate ETF (NYSEARCA:VNQ). This ETF has resulting in a return year to date of 22% and expenses of 0.12%.Next we move on to the utilities market, which is also gaining from the security of essential services businesses. These, in turn, fuel ample and rising dividends. This sector should be bought with the Vanguard Utilities ETF (NYSEARCA:VPU), which has turned in a return year-to-date of 15.7% and carries expenses of 0.1%.Healthcare traditionally has been a reliable growth market through thick and thin. Americans continue to need more and more healthcare and related products -- again providing security in revenues and reliable dividends. This sector has, though, been affected by concerns over potential government changes in healthcare rules. But these concerns, while valid, are still well into the future, probably well beyond the 2020 election. You can invest here with the Vanguard Health Care ETF (NYSEARCA:VHT), which has generated a return to date of 10.8%. The expense ratio is 0.1%.Then we move to the technology market. This sector is challenged by the trade negotiations between the U.S. and China, which may further impact supply chains in China as well as sales all over the world. But the innovation engines remain on a fuller throttle, resulting in a return that dwarfs the general stock market. Buy in here with the Vanguard Information Technology ETF (NYSEARCA:VGT) with a return to date of 31.3% and expenses of 0.1%.The petroleum and energy markets remain uncertain. The supply of crude oil outside the U.S. continues to be threatened by internal hostilities in many Organization of Petroleum Exporting Countries (OPEC) and externally, by sanctions on others including some attacks on ships and pipelines in the Middle East. In the US, shale producers are pumping lots and infrastructure to transport it is coming online -- but the stockpiles are holding down prices.In addition, a slowing global economy is putting supply and demand models into a case for less demand, which is also putting a cap on prices.All this said, the U.S. companies remain great sources of cash flows and are fueling U.S. regional economic growth. And in turn -- they are generating ample cash for bigger dividends. The sector should be represented by the Energy Select Sector SPDR ETF (NYSEARCA:XLE) which has turned in a return year to date of 12.2%.Stock Sector Performance Year to Date Using Vanguard and SPDR ETFs Source Bloomberg Fixed-Income ETFs to Invest InAmong fixed-income allocations, you should have specific ETFs for corporate bonds, preferred stocks and municipal bonds.The U.S. economy continues to grow, with little inflation. This is providing excellent opportunities for specific sectors of the bond markets. Add in a docile Federal Reserve Bank which, while not cutting its target rate range for Fed Funds in the June meeting of its Open Market Committee (FOMC), is still expected to ease money conditions in the target range.Corporate bonds are doing well. The economy is bringing more revenues to companies, which in turn makes them better credit risks. And with yield above Treasuries, they drive more demand for these bonds. This sector should be bought with the SPDR Portfolio Intermediate Term Corporate Bond ETF (NYSEARCA:SPIB) which has generated a return year to date of 5.5% and a 12-month yield of 3.1%. Expenses are 0.07%.Next is preferred stocks. Preferred stocks are the bonds of the stock market. They provide the certainty of largely fixed dividends that are paid before dividends to common stockholders. They are defensive and bigger income-producing investments -- perfect for the current market. The sector should be bought with the iShares Preferred & Income Securities ETF (NASDAQ:PFF) which has generated a return to date of 8.8% and has a 12-month yield of 5.8%. Expenses are 0.46%.Municipal bonds continue from last year to be a go-to market for improving prices with yield premiums to U.S. Treasuries. With the economy doing better, tax revenues for most state and local authorities are improving as well, which in turn drives up the credibility and bond prices. The sector should be bought for total return and not just tax-free income with the Vanguard Tax-Exempt Bond ETF (NYSEARCA:VTEB) which has turned in a return to date of 4.1%. Its 12-month yield is 2.3% and expenses are 0.08%.Fixed Income Sector Year to Date Performance using Index Sector ETFs Source BloombergNow I've presented my way to build an all-weather ETF portfolio, perhaps you might like to see more of my market research and recommendations for further safer growth and bigger reliable income. For more - look at my Profitable Investing. Click here to learn more: https://profitableinvesting.investorplace.com/Neil George is the editor of Profitable Investing and does not have any holdings in the securities mentioned above. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy on College Students' Radars * 7 Retail Stocks to Buy for the Second Half of 2019 * The S&P 500's 5 Best Highest-Yielding Dividend Stocks The post 9 Set-It-And-Forget-It ETFs to Simplify Your Portfolio appeared first on InvestorPlace.
We have highlighted some investing ideas that could prove to be extremely beneficial for investors for the rest of the year in the current market environment.
After a stellar Fed-induced rally in the first half, the U.S. market looks pricey. These ETF techniques could save you from any overvaluation-related downside risks.
Dividend growth in international markets is expected to be impressive this year, a theme that could benefit an array of exchange traded funds, including the Vanguard International High Dividend Yield ETF (VYMI). An easy way of looking at the Vanguard International High Dividend Yield ETF is that it is the international answer to the wildly popular Vanguard High Dividend Yield ETF (VYM) , one of the largest U.S. dividend ETFs. “The fund's selection universe includes large- and mid-cap stocks in the FTSE All-World ex-US Index.
VYMI follows the FTSE All-World ex US High Dividend Yield Index, which is a collection of ex-US dividend payers with above-average yields. This is not a dedicated developed markets fund as 21.4% of VYMI's 1,021 holdings hail from emerging markets. Indeed, VYMI's yield of 4.22% is above average.
Last year was another banner year for Vanguard, the second-largest U.S. issuer of exchange-traded funds (ETFs). As of Dec. 27, Vanguard ETFs listed in the U.S. had $841.70 billion in assets under management, trailing only BlackRock's iShares brand.When 2018 ended four Vanguard ETFs ranked among the year's top ten ETFs in terms of new assets added. Only iShares had more funds on that list, with five. One of the reasons Vanguard ETFs are so popular with advisors and investors is the issuer's reputation for having some of the lowest fees in the fund industry.While there are some examples of ETFs with lower expense ratios than competing Vanguard ETFs, Vanguard has a well-deserved reputation for being one of the low-cost leaders in the index fund and ETF industry.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Dark Horse Stocks Winning the Race in 2019 Here are some of the best Vanguard ETFs to consider in 2019: Vanguard FTSE Europe ETF (VGK)Expense ratio: 0.09% per year, or $9 on a $10, 000 investment.European stocks suffered through a dismal 2018, as highlighted by the Vanguard FTSE Europe ETF (NYSEARCA:VGK) losing almost 18% for the year. VGK finished 2018 residing nearly 13% below its 200-day moving average, a technical indicator the fund has not closed above since the second quarter.VGK follows the FTSE Developed Europe All Cap Index and its geographic selection universe includes Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom, according to Vanguard.In order for this Vanguard ETF to shine in 2019, European geopolitical volatility needs to ease and catalysts beyond valuation and "it cannot get much worse for European stocks" need to emerge. Vanguard Value ETF (VTV)Expense ratio: 0.04% per yearLast year was another challenging one for value stocks, but the fourth-quarter slide in growth and momentum has some market observers speculating that investors will favor more defensive value fare in 2019. The Vanguard Value ETF (NYSEARCA:VTV), one of the cheapest value funds on the market, lost nearly 8% last year and trailed the S&P 500.Like many value funds, this Vanguard ETF was hamstrung in 2018 by a large combined weight to the financial services and energy sectors. Those sectors, two of the worst-performing groups in the S&P 500 last year, combine for nearly 33% of VTV's weight. * 7 Dark Horse Stocks Winning the Race in 2019 As is the case with European stocks, much of the case for value stocks in 2019 revolves around investors saying enough is enough with the declines and earnestly rotating away from growth into value. Investors added $2.54 billion to VTV in the fourth quarter, indicating some are willing to bet on a value rebound in 2019. Vanguard High Dividend ETF (VYM)Expense ratio: 0.06% per yearThe combination of rising interest rates and weakness in the broader market hampered high dividend strategies, such as the Vanguard High Dividend ETF (NYSEARCA:VYM), in 2018. This Vanguard ETF finished 2018 with a loss of nearly 9%. If investors flock to defensive sectors in 2019, something that started happening late last year, VYM could be one of the best Vanguard ETFs in the new year."A Reuters analysis of 2019 outlooks from 10 major financial institutions found eight, including Morgan Stanley, Goldman Sachs and Barclays, with 'overweight' ratings on at least one defensive sector for 2019," reports Reuters. "That marks a big change from last year, when just two of those banks favored any defensive sectors."VYM, which yields 3%, allocates about 34% of its combined weight to the defensive consumer staples, healthcare and utilities sectors. Vanguard FTSE Emerging Markets ETF (VWO)Expense ratio: 0.12% per yearSomething investors heard plenty of in 2018: Emerging markets stocks got punished. From China to Chile and many, many more, emerging markets stocks were a dismal asset class last year as reflected by an annual decline of 17% for the Vanguard FTSE Emerging Markets ETF (NYSEARCA:VWO).VWO, one of the largest emerging markets ETFs by assets, shares some similarities with the aforementioned VGK. Like European stocks, emerging markets equities look like value plays and there is a chorus of investors willing to say things will not get much worse for developing economies.If the Federal Reserve slows its pace of rate hikes in 2019 and the dollar weakens, there could be upside to be had with emerging markets equities. * 7 Dark Horse Stocks Winning the Race in 2019 "There are at least some reasons to be hopeful for emerging Asian assets: oil prices have dropped about 40% from their October peak, which is a boon for countries that import the commodity. Central banks remain vigilant, while a growing number of analysts, including those at Goldman Sachs Group Inc. and UBS Group AG, say the dollar is close to its peak," according to Bloomberg. Vanguard Short-Term Corporate Bond ETF (VCSH)Expense ratio: 0.07% per yearOne way for investors to Fed-proof fixed income portfolios is to lower duration risk. The Vanguard Short-Term Corporate Bond ETF (NASDAQ:VCSH) is one of the best Vanguard ETFs on the short-duration side of the ledger. Plus, this Vanguard fund does not skimp on yield.VCSH has a yield of 2.77%, which is solid when considering the fund's average duration is just 2.7 years. This Vanguard ETF holds over 2,200 investment-grade corporate bonds.Over 59% of VCSH's holdings are rated AA or A while 45% are rated BBB. This Vanguard ETF outperformed the longer duration Markit iBoxx USD Liquid Investment Grade Index by about 600 basis points last year. Vanguard Mid-Cap Value ETF (VOE)Expense ratio: 0.07% per yearAs is the case with the aforementioned VTV, investors embracing the value factor in 2019 would benefit the Vanguard Mid-Cap Value ETF (NYSEARCA:VOE). Mid-cap stockshad a rough 2018 and value stocks were among the more egregious offenders in that category. This Vanguard ETF lagged the S&P MidCap 400 Index by about 240 basis points last year.VOE holds 203 stocks with a median market value of $14.2 billion, which is just outside of mid-cap territory. Like large-cap value strategies, this Vanguard ETF has a large financial services weight (23.9%). Consumer sentiment is important to the fortunes of this Vanguard ETF as the two consumer sectors combine for 27.50% of VOE's roster. * 7 Dark Horse Stocks Winning the Race in 2019 Vanguard Tax-Exempt Bond ETF (VTEB)Expense ratio: 0.09% per yearAfter establishing a rich tradition in the municipal bond index fund and mutual fund arenas, Vanguard got into muni ETFs with the Vanguard Tax-Exempt Bond ETF (NASDAQ:VTEB). This Vanguard ETF follows the S&P National AMT-Free Municipal Bond Index, one of the most widely followed gauges of municipal bonds.In terms of sheer number of holdings, the $4.7 billion VTEB is one of the largest municipal bond ETFs as it is home to nearly 4,200 bonds. This Vanguard ETF's holdings have an average maturity of 13.8 years an average duration of 5.6 years.As is to be expected with investment-grade municipal bond funds, credit risk is not an issue with this Vanguard ETF as over 90% of its holdings are rated AAA, AA or A.As of this writing, Todd Shriber owns shares of VWO. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Top Stock Picks From the Street's Best Analysts * 7 Tech Stocks Without China Exposure * 5 Strong-Buy Stocks That Crushed 2018 Compare Brokers The post 7 Top-Rated Vanguard ETFs to Buy in 2019 appeared first on InvestorPlace.
Vanguard is the best-known pioneer of low-cost investing, including in the exchange-traded fund space. But it's hardly alone anymore, as providers such as Schwab, iShares and SPDR have all hacked away at each other with ever-shrinking fees.Still, don't sleep on Vanguard ETFs. While Vanguard isn't always No. 1 among the cheapest index funds in every class, it's still a low-cost leader in several areas, and it's typically one of the least expensive options no matter where you look.And inexpensive does matter. Let's say an investor puts $100,000 apiece in two different funds that both gain 8% annually, but Fund A charges 1% in fees while Fund B charges 0.5%. In 30 years, Fund A will be worth a respectable $744,335 ... but Fund B will be worth $865,775. That's roughly $120,000 lost not just in fees, but also lost opportunity cost from returns that could have been reinvested in the fund.Here are eight low-cost Vanguard ETFs that investors can use as part of a core portfolio. All of these index funds are among the least expensive in their class and offer wide exposure to their respective market areas. SEE ALSO: The 19 Best ETFs for a Prosperous 2019
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
The recent passing of Vanguard founder John Bogle was a great loss for the investment world. Bogle was responsible for introducing index investing to the fund industry, and in the process, he helped millions of Americans reduce their costs and reach their retirement goals sooner.Bogle launched the first index fund in 1976 and lived to see his creations grow to a $4.6 trillion industry as of 2018. Capital continues to pour into indexed products, and Moody's predicts they will grow to represent 50% of the total investment market within five years. This popularity has grown because of index funds' numerous benefits, which include ... * Lower costs. Index funds don't need to employ teams of research analysts or portfolio managers trying to beat the market by constantly trading stocks. As a result, costs are significantly lower than actively managed funds. * Diversification. Index funds often seek to track a broad benchmark and frequently own hundreds if not thousands of different stocks, whereas the typical actively managed fund holds fewer than 100 stocks. The breadth of holdings helps reduce market risk. * Greater transparency. Index funds have a straightforward objective: match the performance of a market benchmark. These products don't suffer "style drift," which occurs when fund managers goose returns by investing in stocks that don't meet the fund's guidelines. * Superior performance. An annual fund-performance report from S&P; Dow Jones Indices showed that in 2018, the majority of actively managed large-cap mutual funds trailed the Standard & Poor's 500-stock index - for the ninth consecutive year.Here are 11 of the best index funds to buy for a variety of financial goals. This list consists mostly of ETFs but includes a few mutual fund options (including mutual fund versions of ETFs). SEE ALSO: The 19 Best ETFs for a Prosperous 2019