In 2026, Vanguard's High Dividend Yield ETF (VYM) has outperformed the S&P 500, delivering a 16.58% return compared to the S&P 500's 13.75%. This marks a shift as dividend ETFs had lagged behind due to higher fees, tax impacts, and a value stock bias during a growth-dominated decade. VYM tracks a diversified index excluding REITs, focusing on high dividend yield large-cap value stocks, and offers notable tax efficiency with most distributions qualifying for lower tax rates. While the long-term trend depends on value stocks' performance, VYM remains a strong candidate for a core, long-term holding.
A $10,000 investment in the Schwab U.S. Dividend Equity ETF (SCHD) made at its 2011 launch now generates a higher annual yield on cost than any new dividend ETF purchase today. SCHD combines quality screening with a focus on dividend growth and yield...
With September historically a weak month for stocks and hedge funds holding large Nasdaq short positions, Baby Boomers nearing retirement should consider shifting to safer investments. Five dividend-focused ETFs—Schwab U.S. Dividend Equity, Vanguard ...
