High dividend yielding ETFs are popular with investors who prefer dividend yields over growth focused ETFs (which generally pay much smaller dividends). But with so many high dividend ETFs to choose from, which ones should you be looking at?
Here are five dividend focused ETFs to consider for your portfolio, ranked from smallest to largest (as measures by Net Assets):
5. iShares International Select Dividend ETF (IDV)
This iShares ETF tracks the Dow Jones EPAC Select Dividend Index, which consists of 100 high dividend yielding companies in the EPAC (Europe, the Pacific, Asia and Canada) markets. The top three holdings in this ETF are Rio Tinto (RIO), Fortescue Metals Group (FMG), and British American Tobacco (BATS). $10k invested in this ETF 10 years ago would be worth $17.40k today.
- Net Assets: $4.77 billion
- Date founded: June 11, 2007
- Expense ratio: 0.49%
- Yield: 5.41%
- Total holdings: 100
- Net fund flows (past year): $658.06 million
4. SPDR Portfolio S&P 500 High Dividend ETF (SPYD)
This SPDR ETF tracks the S&P 500 High Dividend Index, which consists of high dividend yielding companies in the S&P 500. The top three holdings in this ETF are Baker Hughes (BKR), Chevron (CVS), and Newmont (NEM). This ETF has been around for less than a decade, but $10k invested in this ETF at its inception would be worth $19.89k today.
- Net Assets: $6.57 billion
- Date founded: October 21, 2015
- Expense ratio: 0.07%
- Yield: 3.52%
- Total holdings: 80
- Net fund flows (past year): $2.82 billion
3. Schwab US Dividend Equity ETF (SCHD)
This Schwab ETF tracks the Dow Jones U.S. Dividend 100 Index which consists of high dividend yielding companies American companies with a history of consistently paying dividends. The top three holdings in this ETF are Merck & Co (MRK), Coca-Cola (KO), and Amgen (AMGN). $10k invested in this ETF 10 years ago would be worth $38.98k today.
- Net Assets: $34.89 billion
- Date founded: October 20, 2011
- Expense ratio: 0.06%
- Yield: 2.88%
- Total holdings: 100
- Net fund flows (past year): $11.29 billion
2. Vanguard High Dividend Yield Index Fund (VYM)
This Vanguard ETF tracks the FTSE High Dividend Yield Index and consists of some of the largest blue chip dividend yielding companies. The top three holdings in this ETF are Johnson & Johnson (JNJ), JPMorgan Chase (JPM), and Procter & Gamble (PG). $10k invested in this ETF 10 years ago would be worth $32.58k today.
- Net Assets: $45.26 billion
- Date founded: November 10, 2006
- Expense ratio: 0.06%
- Yield: 2.76%
- Total holdings: 445
- Net fund flows (past year): $6.43 billion
1. Vanguard Dividend Appreciation ETF (VIG)
This Vanguard ETF tracks the S&P U.S. Dividend Growers Index and consists of companies that have consistently increased their dividends every year for at least a decade. The top three holdings in this ETF are Microsoft (MSFT), UnitedHealth Group (UNH), and Johnson & Johnson (JNJ). $10k invested in this ETF 10 years ago would be worth $34.26k today.
- Net Assets: $65.70 billion
- Date founded: April 21, 2006
- Expense ratio: 0.06%
- Yield: 1.78%
- Total holdings: 288
- Net fund flows (past year): $5.06 billion