|Bid||79.50 x 1400|
|Ask||86.82 x 1300|
|Day's Range||86.41 - 86.77|
|52 Week Range||73.18 - 89.47|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.87|
|Expense Ratio (net)||0.06%|
Editor's note: This story was previously published in September 2018. 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. * 15 Stocks Sitting on Huge Piles of Cash Here are some high-dividend ETFs, with very low fees, for income-minded investors to consider. High-Dividend ETFs to Buy: iShares Core High Dividend ETF (HDV)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 3.03%, 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. High-Dividend ETFs to Buy: SPDR Portfolio S&P 500 High Dividend ETF (SPYD)Expense Ratio: 0.08%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 4.65% makes this high-dividend ETF appealing for income investors relative to standard broad market funds. * 15 Stocks Sitting on Huge Piles of Cash SPYD relies heavily on high income sectors that have shown historical vulnerability to rising interest rates -- a trait to keep in mind in the current market environment. The real estate and utilities sectors combine for almost 35% of this high dividend ETF's weight. High-Dividend ETFs to Buy: Invesco Dow Jones Industrial Average Dividend ETF (DJD)Expense Ratio: 0.3%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 Verizon Communications (NYSE:VZ) the high dividend ETF's largest holding. DJD's largest sector weight is technology, and the fund devotes just 12.36 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. High-Dividend ETFs to Buy: Invesco S&P 500 Quality ETF (SPHQ)Expense Ratio: 0.28%With a distribution rate of just 1.8%, 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 firm's "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. * 15 Stocks Sitting on Huge Piles of Cash With a combined weight of over 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. High-Dividend ETFs to Buy: Vanguard High Dividend Yield ETF (VYM)Expense Ratio: 0.06%Home to $22.72 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 3.44% 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 12.80% of VYM's weight.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 15.3%. High-Dividend ETFs to Buy: JPMorgan U.S. Dividend ETF (JDIV)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.With a 12-month yield of 4.07%, JDIV has high-dividend ETF credentials. JDIV's annual fee of 0.12% is quite low. * 15 Stocks Sitting on Huge Piles of Cash High-Dividend ETFs to Buy: Xtrackers MSCI EAFE High Dividend Yield Equity ETF (HDEF)Expense Ratio: 0.33%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 of the Best Stocks to Buy Under $10 * 7 Retail Stocks Winning in 2019 and Beyond * The 10 Best Stocks to Buy for the Bull Market's Anniversary Compare Brokers The post 7 Inexpensive, High-Dividend ETFs to Buy 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
Dividend stocks and exchange traded funds are ideal for long-term investors and fit nicely into tax-advantaged accounts, including individual retirement accounts. The Vanguard High Dividend ETF (NYSE: VYM), one of the largest U.S. dividend ETFs, is among the payout funds suitable for inclusion in retirement accounts for multiple reasons. “One, dividends impose discipline on managers,” said Morningstar in a recent note.
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.
Dividend stocks and ETFs faced plenty of challenges in 2018 as the Federal Reserve boosted interest rates four times, but S&P 500 dividend growth was still impressive. 2018 average is 13.48 percent, up from 2017’s 11.36 percent,” according to S&P Dow Jones Indices.
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 10 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 * 10 Oversold Stocks Due for a Bounce Here are some of the best Vanguard ETFs to consider in 2019: ### Vanguard FTSE Europe ETF (VGK) Expense ratio: 0.10% per year, or $10 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. Much of the Europe rebound thesis revolves around low valuations. VGK's price-to-earnings ratio is just over 13, a discount to the S&P 500. 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: 0.05% per year Last 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 31% of VTV's weight. * 7 Stocks to Buy Down 20% in December 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: 0.08% per year The 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 2.78%, allocates about 35% of its combined weight to the defensive consumer staples, healthcare and utilities sectors. ### Vanguard FTSE Emerging Markets ETF (VWO) Expense ratio: 0.14% per year Something 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 heading into 2019. 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 Tech Stocks Without China Exposure "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 year One 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 2.58%, 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 with an average maturity of 2.9 years. Over 53% 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 year As 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 stocks are coming off 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 204 stocks with a median market value of $13.1 billion, which is just outside of mid-cap territory. Like large-cap value strategies, this Vanguard ETF has a large financial services weight (24.50%). Consumer sentiment is important to the fortunes of this Vanguard ETF as the two consumer sectors combine for 27.20% of VOE's roster. * 5 Turnaround Stocks to Buy as They Rise Amid the Chaos VOE's rock-bottom annual fee makes it cheaper than 94% of competing funds, according to Vanguard data. ### Vanguard Tax-Exempt Bond ETF (VTEB) Expense ratio: 0.09% per year After 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 $3.7 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 13.4 years an average duration of 5.9 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.
What do the midterm election results mean for your retirement? Retirees and those saving for retirement should expect two years of gridlock and should not expect additional tax cuts. Frick and Rosso expect to see the status quo, with the possible exception of bipartisan agreement on infrastructure spending.
These index funds can give you exposure to specific sectors like video games, foreign listed companies, and high yield dividend stocks.
If you're looking for dividend stocks, these ETFs have them, but they go about their stock selection process very differently.
Having an income stream the IRS can’t touch may sound like pie in the sky, but it’s a reality if you hold municipal bonds. If you’re in the highest tax bracket (37%) and you get a 6%-yielding municipal bond fund, that income is the exact same as a 9.5% dividend from stocks. There’s just one problem — iShares National Muni Bond ETF yields a paltry 2.4%.
Inflation affects all of the world’s economies. Every government in the world operates on fiat currency. This currency retains value based on the confidence the public holds in such money. Every fiat currency sees some inflation. Developed world currencies such as the United States dollar see only a small amount. Other currencies, such as the Venezuelan bolivar, can lose significant amounts of value by the minute. Still, by understanding its effects, the stock market can serve as an ally both in mitigating its costs and building wealth during inflationary times.
Investing for retirement usually means investing for the long term. While long-term investing should include individual stocks, low-cost exchange-traded funds (ETFs) and index funds should also be part of the equation.
Businessman, author and TV personality Kevin O'Leary is no stranger to ETFs with his O'Shares ETF Investments that incorporate his investment philosophies. In a video with snippets compiled by YouTuber Evan Carmichael, O'Leary outlined 10 rules for success that can be applied to picking ETFs. 1.
Of the ten US sectors, the telecommunications services sector has the highest dividend yield of 4.9%. Both the industries under the sector have beaten the broad-based index dividend yields.