Best ETFs for Growth and Dividends to Boost Your Portfolio

If you're looking to boost your portfolio with a mix of growth and dividends, consider investing in ETFs that track the performance of established companies with a history of paying consistent dividends. The Vanguard Dividend Appreciation ETF (VIG) is a great option, with a 3.5% dividend yield and a 24-year track record of delivering steady returns.

The ETF invests in a diversified portfolio of 183 stocks, including household names like Johnson & Johnson and Procter & Gamble. By spreading your investment across a broad range of industries and sectors, you can reduce your risk and increase your potential for long-term growth.

Another ETF worth considering is the iShares Core S&P Total U.S. Stock Market ETF (ITOT), which tracks the performance of the entire U.S. stock market. With a low expense ratio of 0.04%, it's a cost-effective way to gain exposure to a broad range of growth and dividend-paying stocks.

The Vanguard Dividend Appreciation ETF (VIG) is a great option for investors looking for a dividend growth ETF, with a dividend yield of 1.7% and assets under management of $85.6 billion.

This ETF tracks the S&P U.S. Dividend Growers Index, which holds U.S. companies that have consistently increased dividends every year for at least a decade. The resultant portfolio is primarily large-cap in nature, with a median market cap of nearly $197.1 billion across its 300-plus holdings.

Some other top dividend ETFs include the ProShares Russell 2000 Dividend Growers ETF (SMDV), which has a dividend yield of 2.8% and assets under management of $709.6 million. This ETF tracks the Russell 2000 Dividend Growth Index, which holds companies in the small-cap Russell 2000 Index that have improved their annual dividend payouts every year for at least a decade.

Here are some key stats on the top dividend ETFs:

These ETFs are all great options for investors looking for dividend growth and stability in their portfolios.

If you're looking for the best ETFs for growth and dividends, you've got a lot of options to consider. Here are some top picks to get you started.

The Vanguard Dividend Appreciation ETF (VIG) is a great choice, with over $85 billion in assets under management and a dividend yield of 1.7%. It tracks the S&P U.S. Dividend Growers Index, which holds U.S. companies that have consistently increased dividends every year for at least a decade.

Another top pick is the iShares Core Dividend Growth ETF (DGRO), which has $30.2 billion in assets under management and a dividend yield of 2.2%. It tracks the Morningstar U.S. Dividend Growth Index, which excludes stocks in the top decile by dividend yield.

The ProShares S&P 500 Dividend Aristocrats ETF (NOBL) is also worth considering, with a dividend yield of 2.0% and a focus on companies that have increased their dividends for at least 25 consecutive years.

Here's a quick rundown of some of the top dividend ETFs:

These ETFs are all great options for investors looking for growth and dividends, but it's essential to do your research and consider your individual financial goals before making a decision.

Vanguard ETFs are a popular choice for investors seeking a combination of growth and dividends. The company offers a range of ETFs that cater to different investment strategies.

One notable ETF is the Vanguard Dividend Appreciation ETF (VIG), which has a fund's dividend yield of 1.7 percent. Its top holdings include Microsoft, Apple, and Broadcom.

The expense ratio for VIG is a low 0.06 percent, making it an attractive option for investors. Assets under management for VIG are approximately $86.6 billion.

VYM, another Vanguard ETF, has a fund's dividend yield of 2.8 percent, significantly higher than VIG. Its top holdings include Exxon Mobil, JPMorgan Chase, Johnson & Johnson, and Broadcom.

Both VIG and VYM have an expense ratio of 0.06 percent, demonstrating Vanguard's commitment to keeping costs low for investors.

When investing in ETFs, it's essential to have a solid strategy in place.

To achieve growth, consider investing in ETFs with a focus on emerging markets, such as the iShares MSCI Emerging Markets ETF (EEM), which has a 10-year average annual return of 9.5%.

Dividend investors should look for ETFs with a high dividend yield, like the Vanguard High Dividend Yield ETF (VYM), which has a dividend yield of 3.4%.

For a balanced approach, you can also consider ETFs that track a mix of growth and dividend stocks, such as the Schwab U.S. Broad Market ETF (SCHB), which has a 5-year average annual return of 13.1% and a dividend yield of 2.1%.

Low Volatility ETFs can be a smart investment choice for those seeking stable returns. The Invesco S&P 500 High Dividend Low Volatility ETF (SPHD) is a great example, with a net asset value of $3.50 billion as of November 20, 2024.

This ETF invests 90% of its assets in the common stocks of companies listed in the S&P 500 Low Volatility High Dividend Index. The fund is concentrated in consumer defense and utilities, with a distribution yield of 3.33% over the past 12 months.

The SPHD ETF holds a diverse portfolio, including Altria Group Inc, Kinder Morgan Inc, and Bristol-Myers Squibb Co. These holdings are a testament to the fund's focus on stable, dividend-paying stocks.

Here are some key statistics about the SPHD ETF:

The SPHD ETF is a reliable choice for investors seeking low volatility and high dividend yields. Its long history, dating back to October 18, 2012, is a testament to its stability and consistency.

Investing in dividend ETFs can be a solid strategy for your portfolio. Since the 1940s, dividends have contributed to the S&P 500's total returns averaging about 34 percent.

A key benefit of dividend investing is that it tends to be less risky. Companies that issue regular payments are often more cash-rich and stable than those trying to rapidly grow their businesses.

To get started, consider your financial goals. The type of investments you choose depends on what you're trying to achieve, so let your objectives drive your decision-making.

Research dividend funds by looking at factors like dividend history, dividend yield, fund performance, expense ratios, top holdings, and assets under management. You can find this information in a fund's prospectus.

Diversification is key, so outline your asset mix before investing. Take an inventory of what you own and how you want to allocate your assets.

To stay on top of your investments, periodically review your holdings. Leverage any free resources from your broker, like meeting with a financial planner, and always ask questions.

Here are the four steps to consider when choosing dividend ETFs:

Let's take a closer look at how some of these ETFs stack up against each other. The Franklin Global Quality Dividend UCITS ETF has a 1-year return of 22.71%, while the Fidelity Global Quality Income UCITS ETF has a 1-year return of 18.23%.

Here are some key statistics for a few popular dividend-growth ETFs:

The DGRW stands out for its high 5-year return of 15.67%, making it a strong contender for those seeking long-term growth.

If you're looking for a solid dividend-growth fund, you might want to consider the DGRW. It has the fewest holdings and the lowest yield, but also the highest five-year return, essentially matching the performance of the S&P 500.

The DGRW charges the highest fees, but its superior performance makes it worth the price of admission. In contrast, the DGRO has the most holdings and the highest yield, but also the lowest return and the largest underperformance of the S&P 500.

If you're looking for a global dividend ETF with high returns, the Franklin Global Quality Dividend UCITS ETF is a top contender. It had a 1-year fund return of 22.71% as of December 31, 2024, making it the best global dividend ETF by that metric.

Here are the top 3 global dividend ETFs by 1-year fund return:

These ETFs are all solid choices, but it's essential to consider your investment goals and risk tolerance before making a decision.

When comparing ETFs, it's essential to consider their returns over time. The Franklin Global Quality Dividend UCITS ETF has returned 22.71% in the past year, while the Fidelity Global Quality Income UCITS ETF has returned 18.23% over the same period.

The iShares MSCI World Quality Dividend ESG UCITS ETF USD (Dist) has a slightly lower return of 16.71% in the past year, but it's essential to note that this ETF has a higher return of 29.82% over the past three years.

In terms of expense ratios, the Vanguard FTSE All-World High Dividend Yield UCITS ETF Distributing has an expense ratio of 0.30%, which is relatively low compared to other ETFs.

The iShares Core Dividend Growth ETF has an expense ratio of 0.08%, which is one of the lowest among the ETFs mentioned in the article. This ETF also has 434 holdings and a yield of 2.47%.

Here's a comparison of the returns of some popular ETFs over the past year:

The iShares STOXX Global Select Dividend 100 UCITS ETF (DE) has a yield of 3.44% and an expense ratio of 0.35%. This ETF has 143 holdings and has returned 13.26% in the past year.

The Vanguard Dividend Appreciation Index Fund has a yield of 1.87% and an expense ratio of 0.06%. This fund has 314 positions and has returned 87.8% over the past five years.

Dividend investing tends to be less risky, as companies that issue regular payments are often more cash-rich than those trying to rapidly grow their businesses.

The Hartford Funds research shows that dividends have contributed about 34 percent to the S&P 500's total returns since the 1940s, and when reinvested, the returns are even higher, accounting for 85 percent of the S&P's cumulative total returns since 1960.

To choose the right dividend ETF, it's essential to determine your financial goals, such as whether you're about to retire and need a more conservative approach to investing.

Researching dividend funds involves paying attention to factors like dividend history, dividend yield, the fund's performance, expense ratios, top holdings, and assets under management.

Here are the key factors to consider when selecting a dividend ETF:

Macroeconomic factors like the interest rate environment also play a factor in the risk profile of a dividend ETF.

If you're looking for other investment options, consider exploring dividend ETFs, which can offer above-average distribution yields.

The Vanguard Dividend Appreciation ETF (VIG) is one such option, known for its focus on dividend-paying stocks with a history of growth.

Fidelity International High Dividend ETF (FIDI) and iShares Core High Dividend ETF (HDV) are also popular choices, offering a mix of high-yielding stocks from around the world.

For a more global approach, the SPDR S&P Global Dividend ETF (WDIV) is worth considering, as it invests in dividend-paying stocks from developed and emerging markets.

The Schwab U.S. Dividend Equity ETF (SCHD) is another option, focusing on dividend-paying stocks in the US market.

Here are some of the most popular high-yielding dividend ETFs to consider:

ESG Investing is a crucial aspect of responsible investing. ESG stands for Environmental, Social, and Governance, and it's a set of criteria used to evaluate a company's impact on the environment and society.

MSCI World High Dividend Yield ESG Reduced Carbon Target Select index includes 177 companies, selected based on quality factors and dividend strength. The selection criteria include a non-negative dividend growth rate over the last 5 years and adherence to ESG criteria.

Companies included in the index are filtered according to ESG criteria, which include environmental, social, and corporate governance factors. This ensures that investments are made in companies that prioritize sustainability and social responsibility.

The index is rebalanced semi-annually in May and November, with a maximum weight per individual stock of 5%. This ensures that the portfolio remains diversified and aligned with the investment objectives.

Here are the ESG criteria used to select companies for the index:

By incorporating ESG considerations into the investment process, investors can make more informed decisions and align their portfolios with their values.

Tax Implications can be a major consideration for investors, especially when it comes to tax-advantaged accounts like 401(k)s and IRAs, which can provide significant tax benefits.

Contributions to these accounts are made with pre-tax dollars, reducing your taxable income for the year.

You can also deduct contributions to traditional IRAs, which can lower your taxable income and reduce your tax liability.

Tax-advantaged accounts can help you save for retirement and other long-term goals while minimizing taxes.

Investments in tax-advantaged accounts are typically subject to taxes when you withdraw the funds, but the tax rates are often lower than what you'd pay on ordinary income.

Consider consulting a tax professional to ensure you're taking advantage of all the tax benefits available to you.

Risk Management is crucial in investing, and it's essential to understand the different types of risks involved. Market risk, for instance, can be mitigated by diversifying your portfolio.

Diversification can help reduce the impact of market downturns, as seen in the 2008 financial crisis. A well-diversified portfolio can help you ride out market fluctuations.

It's also essential to consider liquidity risk, which can be managed by keeping a portion of your investments in cash or easily convertible assets. This can provide a cushion in case you need to withdraw funds quickly.

Risk tolerance is another critical factor in investment decisions, and it's essential to understand your own risk tolerance before investing. This can help you make informed decisions and avoid taking on more risk than you can handle.

Regular portfolio rebalancing can also help manage risk, as it can help you stay on track with your investment goals. By periodically reviewing and adjusting your portfolio, you can ensure that it remains aligned with your risk tolerance and investment objectives.

Before investing in dividend ETFs, it's essential to determine your financial goals. This will help you choose the right investment style and risk level for your portfolio.

Researching dividend funds is crucial to making an informed decision. Look for factors like dividend history, dividend yield, the fund's performance, expense ratios, top holdings, and assets under management in the fund's prospectus.

To outline your asset mix, take an inventory of what you own and how you want to allocate your assets. Remember, diversification is key to minimizing risk.

A dividend ETF's risk profile can vary greatly depending on the level of risk in the portfolio. For example, a fund that invests in emerging markets will have a different risk profile than a fund that invests in established companies.

Here are four steps to consider when choosing dividend ETFs:

Working with a financial advisor can be a game-changer for your investment strategy. They can help you navigate the complexities of dividend payments, such as the ex-dividend date, which is the cutoff point for shareholders to receive a dividend.

Dividend yields can be misleading, so it's essential to look at a company's entire financial picture before investing. A high yield doesn't always mean a solid investment opportunity, and investors often view the highest yields as a red flag.

A financial advisor can help you calculate dividend yields and understand their implications. They can also help you make informed decisions about your investments, taking into account the quarterly distribution of dividends, such as the $1 distribution mentioned earlier.

Before investing, be sure to examine a company's financial health and consider the potential risks of a high yield. A financial advisor can provide valuable insights and help you avoid common pitfalls.

If you're looking for popular ETFs that offer growth and dividends, here are some top picks. The Vanguard Total Stock Market ETF (VTSAX) is a great option, with over $500 billion in assets under management.

The iShares Core S&P Total U.S. Stock Market ETF (ITOT) is another popular choice, offering broad diversification with over 3,000 holdings. It's also one of the lowest-cost ETFs on the market, with an expense ratio of just 0.04%.

The Schwab U.S. Broad Market ETF (SCHB) rounds out our list, with over $50 billion in assets and a 0.03% expense ratio.

iShares ETFs are a popular choice among investors, with over 800 funds available across various asset classes.

iShares offers a wide range of ETFs, including those that track the S&P 500, the Dow Jones Industrial Average, and other major market indexes.

Their ETFs are known for their low fees and high trading volumes, making them a convenient option for investors who want to diversify their portfolios.

The iShares Core S&P 500 ETF, for example, has an expense ratio of just 0.04% and holds over 500 stocks in the fund.

ProShares ETFs are known for their unique approach to investing. They offer over 200 ETFs that provide inverse or leveraged exposure to various asset classes and market indices.

One of their most popular ETFs is the UltraPro Short QQQ ETF, which has a 3x daily inverse exposure to the Nasdaq-100 Index. This means it can potentially increase in value when the Nasdaq-100 falls.

ProShares also offers the UltraPro S&P 500 ETF, which has a 3x daily leveraged exposure to the S&P 500 Index. This ETF is designed for investors who want to amplify their gains in a rising market.

Their ETFs are listed on major US exchanges, such as the NYSE Arca and the NASDAQ Global Select Market.

The iShares Select Dividend ETF (DVY) is an excellent choice for investors seeking a diversified portfolio of high-dividend yield companies. It tracks the Dow Jones Select Dividend Index, which selects about 100 US-based companies with high dividend yields.

One of the key benefits of DVY is its relatively low expense ratio of 0.38 percent, making it an attractive option for those looking to minimize costs. Its top holdings include Altria Group (MO), AT&T (T), Philip Morris International (PM), and Citizens Financial Group (CFG).

DVY's dividend yield stands at 3.5 percent, which is significantly higher than some other ETFs on the market. This makes it a great choice for income-seeking investors.

Here are some key statistics about DVY:

The DIA, or Dow Jones Industrial Average ETF, is a popular choice for investors. It tracks the performance of the 30 largest and most widely traded stocks in the US.

The DIA is designed to mirror the performance of the Dow Jones Industrial Average, which is a price-weighted index. This means that the ETF holds a representative sample of the 30 component stocks.

The DIA is a great option for investors who want to gain broad exposure to the US stock market. It's also a popular choice for those who want to hedge their portfolios or trade on market trends.

The DIA has an expense ratio of 0.18%, making it a relatively low-cost option for investors.