A Dividend ETF with a Focus on Quality

Dividends provide an additional source of income and returns in an equity portfolio, but investors should still know the type of exposure dividend exchange traded fund investments provide.

While high yield dividend ETFs generate attractive yields, the dividends may not be sustainable or the stocks could be more susceptible to market volatility. On the other hand, investors can take a look at stable “Dividend Achievers” that have a regularly increased dividends over the past.

Vanguard offers a high-yield ETF, the Vanguard High Dividend Yield Index ETF (NYSE: VYM), which recently had its expense ratio lowered to 0.10% from 0.13%. The fund only tracks U.S. dividend payers, excluding real estate investment trusts, excludes companies that did not pay a dividend in the past year and ranks holdings by yield. VYM has a 3.05% 12-month yield.


Source:  Tom Lydon, ETF Trends

VYM is a component of the D2 Capital Management Multi-Asset Income Portfolio.

The information contained in this article does not constitute a recommendation, solicitation, or offer by D2 Capital Management, LLC or its affiliates to buy or sell any securities, futures, options or other financial instruments or provide any investment advice or service. D2, its clients, and its employees may or may not own any of the securities (or their derivatives) mentioned in this article.

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