List of Dividend Paying ETFs with High Returns and Low Fees

If you're looking for a way to generate consistent income through dividend-paying ETFs, you're in luck. There are many options available with high returns and low fees.

Vanguard High Dividend Yield ETF (VYM) is a popular choice, with a 2.23% expense ratio and a 3.44% dividend yield. It's a great option for those looking for a straightforward, low-cost investment.

iShares Core S&P U.S. Dividend Aristocrats ETF (NOBL) is another top contender, with a 0.35% expense ratio and a 2.31% dividend yield. This ETF focuses on companies with a history of consistently paying dividends.

Schwab U.S. Dividend Equity ETF (SCHD) is a low-cost option with a 0.06% expense ratio and a 2.67% dividend yield. It's a great choice for those looking for a diversified portfolio.

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Fund performance and returns are crucial when evaluating dividend ETFs. The best global dividend ETF by 1-year fund return as of 31.12.24 is the Franklin Global Quality Dividend UCITS ETF, with a return of 22.71%.

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To give you a better idea of the performance of these ETFs, here are some key statistics:

You can also compare the returns of these ETFs over different time periods, such as 6 months, 1 year, 3 years, and so on. For example, the Franklin Global Quality Dividend UCITS ETF has a 6-month return of 9.65% and a 3-year return of 25.57%.

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Index comparison and methodology is crucial when it comes to selecting a suitable dividend-paying ETF. Let's dive into the details of the various global dividend ETFs.

The FTSE All-World High Dividend Yield index has 2,165 constituents and is rebalanced semi-annually, while the MSCI World High Dividend Yield ESG Reduced Carbon Target Select index has 177 constituents and is rebalanced semi-annually as well. On the other hand, the S&P Global Dividend Aristocrats index has 96 constituents and is rebalanced annually.

Here's a comparison of the various global dividend ETFs:

Each index has its own unique methodology and selection criteria. The FTSE All-World High Dividend Yield index selects stocks based on expected dividend yield, while the MSCI World High Dividend Yield ESG Reduced Carbon Target Select index selects stocks based on quality factors, dividend yield, and ESG criteria. The S&P Global Dividend Aristocrats index selects stocks based on a controlled dividend policy with rising or stable dividends for at least 10 consecutive years.

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Stock indices can be a great way to track the performance of a specific segment of the market, but they're not all created equal. The methodology behind each index can vary significantly.

Some indices, like the FTSE All-World High Dividend Yield, use a semi-annual rebalancing schedule, while others, like the STOXX Global Select Dividend 100, rebalance annually in March.

The number of constituents in an index can also impact its performance. For example, the FTSE All-World High Dividend Yield index has 2,165 constituents, while the S&P Global Dividend Aristocrats has only 96.

Here's a comparison of the number of ETFs and constituents for some popular dividend-focused indices:

The investment universe for each index can also impact its performance. For example, the FTSE All-World High Dividend Yield index includes 4,291 stocks from developed and emerging markets worldwide, while the STOXX Global Select Dividend 100 index includes 100 dividend stocks from developed countries worldwide.

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The FTSE All-World index is a broad market index that tracks stocks from developed and emerging economies worldwide. It has 4,291 constituents, as of 28.06.24, excluding REITs.

This index serves as the investment universe for the FTSE All-World High Dividend Yield index, which selects the top dividend-yielding stocks from it. The FTSE All-World index is a crucial component in the methodology of the FTSE All-World High Dividend Yield index.

Here are some key facts about the FTSE All-World index:

The FTSE All-World index is the parent index of the FTSE All-World High Dividend Yield index, which aims to reflect 50 percent of it. This means that the FTSE All-World High Dividend Yield index selects the top dividend-yielding stocks from the FTSE All-World index.

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The SG Quality Income Index is a global index that tracks high dividend stocks from developed economies. It includes 25 to 75 stocks from developed countries worldwide, excluding financials.

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The selection process for the index is based on comprehensive quality criteria, including profitability, solvency, and internal efficiency, as well as balance sheet valuation. A firm's dividend yield must be at least 4 percent to be selected.

The index is constructed by Société Générale and calculated by Solactive. It's rebalanced on a quarterly basis, which means the composition of the index changes every quarter.

Here are the key characteristics of the SG Quality Income Index:

When comparing global dividend ETFs, it's essential to consider their size, as it can impact their performance. The Vanguard FTSE All-World High Dividend Yield UCITS ETF Distributing has a fund size of 4,748 million euros, making it one of the largest in the list.

The TER, or total expense ratio, varies across ETFs, with some charging as low as 0.25% p.a. and others as high as 0.50% p.a. The Xtrackers MSCI World High Dividend Yield ESG UCITS ETF has a TER of 0.25% p.a., making it a relatively cheap option.

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Accumulating and distributing ETFs have different characteristics, with accumulating ETFs reinvesting dividends and distributing ETFs paying out dividends. The Vanguard FTSE All-World High Dividend Yield UCITS ETF Acc has an accumulating strategy, while the Vanguard FTSE All-World High Dividend Yield UCITS ETF Distributing has a distributing strategy.

Here is a summary of the fund size and TER for the top 5 ETFs in the list:

The fund domicile, or where the ETF is registered, can also impact its tax treatment and regulatory requirements. The Vanguard FTSE All-World High Dividend Yield UCITS ETF Distributing is registered in Ireland, while the iShares STOXX Global Select Dividend 100 UCITS ETF (DE) is registered in Germany.

The MSCI World High Dividend Yield ESG Reduced Carbon Target Select index focuses on high-quality dividend stocks from developed countries worldwide.

This index includes 177 companies, selected based on quality factors, dividend strength, and ESG criteria (environmental, social, and corporate governance).

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The ESG criteria filter out companies that don't meet certain standards, ensuring that the index is invested in sustainable and responsible companies.

The index excludes REITs and is weighted by free float market capitalization.

The maximum weight per individual stock is 5%.

The index is rebalanced semi-annually in May and November.

The MSCI World index, which comprises 1,397 shares, serves as the underlying index for the MSCI World High Dividend Yield ESG Reduced Carbon Target Select index.

By considering ESG criteria, investors can align their investments with their values and contribute to a more sustainable future.

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The S&P Global Dividend Aristocrats index is designed for long-term and sustainable dividend growth, tracking stocks from developed and emerging economies worldwide.

This index has strict inclusion rules, requiring companies to have at least 10 consecutive years of a controlled dividend policy with rising or stable dividend payments. Additionally, pre-defined yield criteria must be met.

The S&P Global Dividend Aristocrats index ensures that no cluster risks arise by setting limits for individual securities, sector, and country weightings.

Some other high-yielding dividend ETFs worth considering include the Vanguard Dividend Appreciation ETF (VIG), Fidelity International High Dividend ETF (FIDI), iShares Core High Dividend ETF (HDV), SPDR S&P Global Dividend ETF (WDIV), and Schwab U.S. Dividend Equity ETF (SCHD).

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The S&P Index is a great option for investors looking for consistent dividend growth. It's based on the S&P Global Broad Market Index (BMI), which tracks stocks from developed and emerging economies worldwide.

The S&P Global Dividend Aristocrats index specifically aims at long-term and sustainable dividend growth. A company is only included in this index if it has at least 10 consecutive years of a controlled dividend policy with rising or stable dividend payments.

This index is made up of around 100 dividend stocks, selected from a universe of 14,542 stocks. The selection criteria include a controlled dividend policy with rising or stable dividends for at least 10 consecutive years.

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The index is rebalanced annually in January, and reviews take place monthly. The selected stocks are weighted by their indicated dividend yield.

Here's a quick rundown of the key characteristics of the S&P Global Dividend Aristocrats index:

The SPDR S&P Dividend ETF (SDY) is another option that tracks the performance of the S&P High Yield Dividend Aristocrats Index. This index screens for companies that have consistently increased dividend payments for at least 20 consecutive years.

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The S&P Factsheet provides valuable insights into the methodology behind the S&P Global Dividend Aristocrats index. The index includes approximately 100 dividend stocks from developed and emerging economies worldwide.

The investment universe for this index is the S&P Global Broad Market Index (BMI), which comprises 14,542 stocks as of February 28, 2022. This vast universe allows for a diverse selection of stocks that meet the index's criteria.

Stock selection is based on the indicated and historical dividend yield, with a focus on companies that have a controlled dividend policy with rising or stable dividends for at least 10 consecutive years. This ensures that the index includes companies with a proven track record of paying consistent dividends.

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Index rebalancing takes place annually in January, with monthly reviews to ensure the index remains aligned with its methodology. The index is weighted by the indicated dividend yield, with a cap of 3% per individual stock and 25% per sector/country. This prevents any one stock or sector from dominating the index.

Here are some key statistics about the S&P Global Dividend Aristocrats index:

These statistics demonstrate the S&P Factsheet's commitment to transparency and clarity in its methodology. By understanding these key characteristics, investors can make informed decisions about whether the S&P Global Dividend Aristocrats index is a good fit for their investment goals.

If you're looking for other high-yielding dividend options, you might want to consider the Vanguard Dividend Appreciation ETF (VIG). It's a popular choice among investors.

The Fidelity International High Dividend ETF (FIDI) is another option to consider, offering above-average distribution yields. Its performance has been impressive, making it a solid addition to a dividend-focused portfolio.

The iShares Core High Dividend ETF (HDV) is a low-cost option that's easy to understand and implement. It's a great choice for those new to dividend investing.

The SPDR S&P Global Dividend ETF (WDIV) is a good option for those looking to diversify their dividend portfolio. It offers exposure to a broad range of global dividend-paying stocks.

The Schwab U.S. Dividend Equity ETF (SCHD) is a well-established fund that's been around for a while. It's a solid choice for those looking for a reliable dividend stream.

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

The list of global dividend ETFs provides a wealth of information to help you make an informed decision. Fund size is a significant factor, with Vanguard FTSE All-World High Dividend Yield UCITS ETF Distributing being the largest with a fund size of 4,748 million EUR.

TER, or total expense ratio, is another crucial aspect to consider. The lowest TER is 0.25% p.a. held by Xtrackers MSCI World High Dividend Yield ESG UCITS ETF, while the highest is 0.50% p.a. held by Xtrackers STOXX Global Select Dividend 100 Swap UCITS ETF.

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The replication method is also worth examining. Optimized sampling is used by Vanguard FTSE All-World High Dividend Yield UCITS ETF Distributing, while full replication is used by several ETFs, including iShares STOXX Global Select Dividend 100 UCITS ETF and Fidelity Global Quality Income UCITS ETF.

Comparison is key when it comes to choosing a global dividend ETF. You'll want to consider the fund size, cost, age, income, domicile, and replication method to make an informed decision.

The largest global dividend ETF is the Vanguard FTSE All-World High Dividend Yield UCITS ETF Distributing, with a fund size of 4,748 million euros.

The cost of maintaining a global dividend ETF can vary, with the Xtrackers STOXX Global Select Dividend 100 Swap UCITS ETF 1D having the highest TER at 0.50% p.a.

Most global dividend ETFs are domiciled in Ireland, with 10 out of 15 ETFs listed in the table having this domicile.

The replication method used by global dividend ETFs can also impact performance, with optimized sampling and full replication being the most common methods.

Here's a breakdown of the fund size of the global dividend ETFs listed:

History shows that dividends have been a significant source of income for investors.

Consistent dividend payments can be a powerful wealth-building tool when combined with rising stock values.

Dividend ETFs offer more diversification than individual stocks by allowing you to invest in multiple companies at once.

They can be a good way to reap healthy dividend payments from established companies.

Adding dividend ETFs to your portfolio can increase your income stream.