Perhaps unsurprisingly, that also means a significant change in the industry focus when compared with other broad-based funds. That adds up to a portfolio of about 80 companies and a yield that is significantly higher than most other large-cap index funds. corporations, then zeroes in on the top 15% or so stocks with the largest dividends. Nudging the yield even higher while sticking with the usual suspects is the SPDR Portfolio S&P 500 High Dividend ETF ( SPYD (opens in new tab), $40.99).Īs the name implies, this fund begins with the S&P 500 index of the biggest U.S. Learn more about SCHD at the Charles Schwab provider site. These kinds of "risk-off" stocks have held up amid the chaos of 2022, and this high-yield ETF should continue to serve investors well in the year ahead. The result allows you to double the current yield of the S&P 500, all while sticking with familiar low-risk names that are easy to understand.Īt present, top holdings are pharmaceutical giant Merck ( MRK (opens in new tab)), tech icon International Business Machines ( IBM (opens in new tab)) and home improvement heavyweight Home Depot ( HD (opens in new tab)), to name a few. And to be included, companies must have paid dividends for at least 10 straight years. As such, this fund holds 100 of the largest and most liquid stocks that pay above-average dividends. The approach is very straightforward: SCHD is benchmarked to the Dow Jones U.S. This is one of the largest funds of any flavor on Wall Street, and thanks to its size as well as its elegant simplicity, it's also one of the cheapest with a rock-bottom fee structure that will cost just a few dollars per year for most investors. Dividend Equity ETF ( SCHD (opens in new tab), $77.55). The simplest place for investors to start looking for high-yield ETFs is the Schwab U.S. Expenses: 0.06%, or $6 annually for every $10,000 invested.
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