There is an erroenous assumption that some investors make about Dividend ETFs. For one thing, many mistakenly believe that a fund needs to be labeled as a dividend exchange-traded product to provide a high level of income. For another, many fail to look overseas.
Granted, Vanguard Dividend Growth (VIG) is a fine example of capturing long-term gains from corporations that consistently raise their dividends every year. Yet those in pursuit of a current income stream might be disappointed by the annual yield of 2.4%.
In contrast, an investor inÂ Vanguard Utilities (VPU) might enjoy 4% annualized. Similarly, an investor in WisdomTree ex Financials (DTN) might take inÂ 3.6%.
Even more remarkable, investors rarely focus on the high dividends that foreign corporationsÂ can bring to the table. WisdomTree Emerging Markets (DEM) and SPDR S&P Emerging Market Dividend (EDIV) may yieldÂ 5% to 6%. And for those who are bold enough to stand by volatile funds like iShares MSCI Brazil (EWZ) or iShares MSCI Australia (EWA), the annual income reward is as high as 6.5% and 5.5% respectively.
The Surprising Source For Big Dividends â€“ Dan Caplinger, Motley Fool
Top 10 Industrial Sector ETFs â€“ Dave Fry, The Street
Gold Clears Key Hurdle: Can It Hold? ABX, GG Lead Miners Higher â€“ Murray Coleman, Barronâ€™s
Consumers Are Scared? Really? â€“ Paul R La Monica, CNN Money
Bonds, ETFs And The Currency Connection â€“ Matt Tucker, Seeking Alpha Â Â Â
Disclosure Statement: ETF ExpertÂ is a web log (â€ťblogâ€ť) that makes the world of ETFs easier to understand. Gary Gordon, MS, CFP is the president of Pacific Park Financial, Inc., a Registered Investment Adviser with the SEC. Gary Gordon, Pacific Park Financial, Inc, and/or its clients may hold positions in the ETFs, mutual funds, and/or any investment asset mentioned above. The commentary does not constitute individualized investment advice. The opinions offered herein are not personalized recommendations to buy, sell or hold securities. At times, issuers of exchange-traded products compensate Pacific Park Financial, Inc. or its subsidiaries for advertising at the ETF Expert web site. ETF Expert content is created independently of any advertising relationships. You may review additional ETF Expert disclosure details here.