Which index fund has the highest dividend yield?
Vanguard Dividend Appreciation ETF (VIG)
When it comes to dividend ETFs, the place to start is this leading Vanguard fund, which is the largest dividend stock fund by assets. It's also among the very cheapest funds as measured by its annual expenses.
| FUND | TICKER | 10-YEAR ANNUALIZED RATE |
|---|---|---|
| Fidelity 500 Index Fund | FXAIX | 12.95% |
| Vanguard 500 Index Fund Admiral Shares | VFIAX | 12.92% |
| Schwab S&P 500 Index Fund | SWPPX | 12.90% |
| State Street S&P 500 Index Fund Class N | SVSPX | 12.82% |
| Fund | Expense Ratio | 30-day SEC Yield |
|---|---|---|
| Fidelity Real Estate Income Fund (ticker: FRIFX) | 0.68% | 5.8% |
| American Funds Conservative Growth and Income Portfolio (INPFX) | 0.65% | 3.6% |
| American Funds Capital Income Builder (CIBFX) | 0.66% | 3.4% |
| JPMorgan Equity Premium Income Fund (JEPAX) | 0.85% | 6% |
Vanguard Dividend Appreciation ETF (VIG)
When it comes to dividend ETFs, the place to start is this leading Vanguard fund, which is the largest dividend stock fund by assets. It's also among the very cheapest funds as measured by its annual expenses.
- Vanguard Dividend Growth VDIGX.
- Vanguard High Dividend Yield ETF VYM.
- Vanguard High Dividend Yield Index VHYAX.
- WisdomTree U.S. LargeCap Dividend ETF DLN.
- WisdomTree U.S. MidCap Dividend ETF DON.
- WisdomTree U.S. SmallCap Dividend ETF DES.
Within the world of corporate governance, there has hardly been a more important recent development than the rise of the 'Big Three' asset managers—Vanguard, State Street Global Advisors, and BlackRock.
| Fund (ticker) | 5-year annual returns | Expense ratio |
|---|---|---|
| Fidelity ZERO Large Cap Index (FNILX) | 14.6% | 0% |
| Vanguard S&P 500 ETF (VOO) | 14.5% | 0.03% |
| SPDR S&P 500 ETF Trust (SPY) | 14.5% | 0.095% |
| iShares Core S&P 500 ETF (IVV) | 14.5% | 0.03% |
- The Best Dividend ETFs of April 2024.
- Vanguard International High Dividend Yield ETF (VYMI)
- Invesco S&P 500 High Dividend Low Volatility ETF (SPHD)
- WisdomTree U.S. SmallCap Dividend Fund (DES)
- FCF International Quality ETF (TTAI)
- Invesco High Yield Equity Dividend Achievers ETF (PEY)
“Vanguard High Dividend Yield Index Fund: VHYAX.” Vanguard, Personal Investors. “VHYAX: Vanguard High Dividend Yield Index Fund Admiral Shares.” Vanguard, Personal Investors.
| Stock | Trailing annual dividend yield* |
|---|---|
| Crown Castle Inc. (CCI) | 5.9% |
| Pfizer Inc. (PFE) | 5.9% |
| Boston Properties Inc. (BXP) | 6.2% |
| Kinder Morgan Inc. (KMI) | 6.2% |
Is Vanguard or Fidelity better?
While Fidelity wins out overall, Vanguard is the best option for retirement savers. Its platform offers tools and education focused specifically on retirement planning.
Vanguard High Dividend Yield ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
How much is Vanguard 500 Index Fd Admiral Shs's dividend? VFIAX pays a dividend of $1.54 per share. VFIAX's annual dividend yield is 1.56%.
| Symbol | Name | Dividend Yield |
|---|---|---|
| SDIV | Global X SuperDividend ETF | 12.02% |
| QYLD | Global X NASDAQ 100 Covered Call ETF | 11.98% |
| BTF | Valkyrie Bitcoin and Ether Strategy ETF | 11.92% |
| FTQI | First Trust Nasdaq BuyWrite Income ETF | 11.89% |
Cons. No guarantee of future dividends. Stock price declines may offset yield. Dividends are taxed in the year they are distributed to shareholders.
Dividend ETFs and dividend stocks can both generate income and provide long-term growth for investors. However, they both carry similar degrees of market risk. Therefore, the choice of ETFs versus stocks comes down to an investor's personal preferences, investing goals and tolerance for risk.
He owns a small bit of each in his portfolio for Berkshire, too. The two investments held in Berkshire Hathaway's portfolio that Buffett recommends more than anything else are two S&P 500 index funds. The SPDR S&P 500 ETF Trust (NYSEMKT: SPY) and the Vanguard S&P 500 ETF (NYSEMKT: VOO).
What do analysts say about VOO? VOO's analyst rating consensus is a Moderate Buy. This is based on the ratings of 505 Wall Streets Analysts.
| Symbol Symbol | ETF Name ETF Name | 1 Year 1 Year |
|---|---|---|
| QQQ | Invesco QQQ Trust Series I | 31.98% |
| VUG | Vanguard Growth ETF | 30.71% |
| IWF | iShares Russell 1000 Growth ETF | 30.58% |
| VGT | Vanguard Information Technology ETF | 27.51% |
Disadvantages include the lack of downside protection, no choice in index composition, and it cannot beat the market (by definition).
Which index to buy in 2024?
| Index fund | Minimum investment | Expense ratio |
|---|---|---|
| Schwab S&P 500 Index Fund (SWPPX) | No minimum. | 0.02%. |
| Fidelity 500 Index Fund (FXAIX) | No minimum. | 0.015%. |
| Fidelity Zero Large Cap Index (FNILX) | No minimum. | 0.0%. |
| T. Rowe Price Equity Index 500 Fund (PREIX) | $2,500. | 0.20%. |
The short answer is a resounding yes. Let's take a look at why this is. While past investment performance doesn't guarantee future results, the return of S&P 500 index funds has been about 9% to 10% annualized per year over long periods, depending on the exact timeframe you're looking at.
- ARMOUR Residential REIT – 20.7%
- Orchid Island Capital – 17.8%
- AGNC Investment – 14.8%
- Oxford Square Capital – 13.7%
- Ellington Residential Mortgage REIT – 13.2%
- SLR Investment – 11.5%
- PennantPark Floating Rate Capital – 10%
- Main Street Capital – 7%
Most index funds pay dividends to their shareholders. Since the index fund tracks a specific index in the market (like the S&P 500), the index fund will also contain a proportionate amount of investments in stocks. For index funds that distribute dividends, many pay them out quarterly or annually.
What Is a Good Dividend Yield? Yields from 2% to 6% are generally considered to be a good dividend yield, but there are plenty of factors to consider when deciding if a stock's yield makes it a good investment. Your own investment goals should also play a big role in deciding what a good dividend yield is for you.
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