Dividend/Income

Why Invest in Income  

The funds in this category invest in a basket of  stocks from diverse companies and sectors that pay regular dividends. There is a steady stream of income as well as participation in the upside in price appreciation of stock.  Companies included in this category ETF’s are relatively  stable with steady cash flows. They have lower risk and may be a good fit for a range of investors  from young to retirees. The Dividend ETF’s do well in an uncertain environment when yields elsewhere are volatile. Over a long term their performance had been shown to be solid.

Key indicators to consider before investing

Top 5 ETF’s in sector by Market Capitalization

Name of the Fund Ticker Symbol /Total AUM* Year of Inception Expense Ratio
 Vanguard Dividend Appreciation  VIG  04/21/2006  0.09%
Vanguard High Dividend Yield  VYM  11/10/2006 0.10%
 iShares Select Dividend   DVY  11/03/2003 0.39%
 SPDR S&P Dividend   SDY  11/08/2005  0.35%
 iShares Core High Dividend   HDV  03/29/2011  0.08%

 

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