“The following provides 5 High yielding dividend-focused ETFs (DIV, SDIV, SDEM, DVYE, EFAS) to invest in for passive investors."
Key Takeaways:
Why invest in Dividend ETFs.
Top 5 ETFs to invest in for 2021.
Benefits of investing in ETFs.
By: Allan R Kirby
Why invest in Dividend ETFs
So do Dividends Really Matter? should you invest in them? In short yes if you are looking for yield as well as income. Although investing in high flying growth stocks in sectors such as cloud computing and security have been wildly popular, there are still many investors who have an interest in building a balanced portfolio that includes dividend-yielding stocks and ETFs. For some investors, it's important to search for income-producing securities that provide a good return on investment. This is critical in an environment of historically low yields found with most Treasury yields around the world that are either negative or just barely above 0%.
Although Treasuries may seem like a good idea as a risk-free investment, if you are retired or need some income, you simply cannot build any real income with rates under 1%. Many people however are concerned with investing in single stocks as they do not want to lose their investment. As a result, a high yield dividend ETF might be the answer plus some of these ETFs provide monthly distributions instead of quarterly or bi-annual.
Benefits of a Dividend ETF
First, Dividend ETFs can contain a selection of stocks that offer broad market exposure or one that is focused on certain sectors based on an industry or region. In both cases, the risk is reduced because the ETF is not weighted to just one stock.
Another benefit is that dividend ETFs trade like a stock and you can buy and sell them relatively easily. They are fairly liquid, meaning you can get rid of them relatively quickly and inexpensively.
The following are some of the top dividend ETFs that have some of the highest yields. Remember to take your time to do research and see if these ETFs are good for your portfolio, not sure? contact an investment professional if you are not sure about investing in ETFs.
Here are 5 Top High-Yield Dividend ETFs to buy in 2021
Yield (8.00%)
Monthly Distributions(Yes)
Expense Ratio: .46% (Good)
Details: The Global X SuperDividend® U.S. ETF (DIV) invests in 50 of the highest dividend-yielding equity securities in the United States. The Global X SuperDividend® U.S. ETF (DIV) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Indxx SuperDividend U.S. Low Volatility Index.
Top 5 Holdings include:
B&G FOODS INC
KRAFT HEINZ CO/THE
FORTRESS TRANSPO
DELEK LOGISTICS
GENERAL MILLS INC
Yield (7.93%)
Monthly Distributions(Yes)
Expense Ratio: .59% (A little high)
Details: The Global X SuperDividend ETF (SDIV) is designed to invest in 100 of the highest dividend-yielding equity securities in the world. The Global X SuperDividend® ETF (SDIV) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Global SuperDividend Index.
Top 5 Holdings include:
B&G FOODS INC
DIVERSIFIED GAS & OIL PLC
KUMBA IRON ORE LTD
NLMK PJSC-GDR
EVRAZ PLC
Yield (6.31%)
Monthly Distributions(Yes)
Expense Ratio: .66% (A little high)
Details: The Global X MSCI SuperDividend® Emerging Markets ETF (SDEM) invests in 50 of the highest dividend-yielding equities in the Emerging Markets. The Global X MSCI SuperDividend® Emerging Markets ETF (SDEM) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI Emerging Markets Top 50 Dividend Index.
Top 5 Holdings include:
BANCO SANTA-UNIT
ALDAR PROPERTIES PJSC
KUMBA IRON ORE LTD
LENOVO GROUP LTD
BANCO DO BRASIL S.A.
Yield (5.70%)
Monthly Distributions(No)
Expense Ratio: .49% (Good)
Details: The iShares Emerging Markets Dividend ETF seeks to track the investment results of an index composed of relatively high dividend paying equities in emerging markets. The ETF has Exposure to a broad range of around 100 dividend-paying established companies in emerging markets countries.
Top 5 Holdings include:
EVRAZ
INDIABULLS HOUSING FINANCE LTD
NOVOLIPETSK STEEL GDR
ABSA GROUP LTD
NEDBANK GROUP LTD
Yield (4.34%)
Monthly Distributions(Yes)
Expense Ratio: .56% (Good)
Details: The Global X MSCI SuperDividend® EAFE ETF (EFAS) invests in 50 of the highest dividend yielding equity securities from the MSCI EAFE Index, which includes securities from international developed markets across Europe, Australasia, and the Far East. The Global X MSCI SuperDividend® EAFE ETF (EFAS) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI EAFE Top 50 Dividend Index.
Top 5 Holdings include:
PANDORA A/S
FORTESCUE METALS
BBVA
COVIVIO
OMV AG
There are many benefits to investing in an ETF which includes the following:
1. ETFs can be a great way to invest in a sector without the need to do a lot of research.
2. ETFs are diversified so the risk is reduced because you are not investing in a single stock.
3. you are automatically diversified.
4. Expense fees to run the ETF are very low.
5. It's easy to buy and sell ETF's.
6. Great investment for the more passive investor who does not want to be active with their investing [1].
Like all investments, these investments may or may not be for you, however, take the time, do your research and see if these three ESG ETFs plus the Impact Shares YWCA Women's Empowerment ETF are for you.
Notes:
Passive Investors are investors who prefer to buy and hold stocks but are not actively involved with the securities they hold. Passive investors do take care of their overall investment strategies, however, they tend to hold their investments over a longer period of time. Most passive investors invest their money into ETF's and Mutual Funds as these types of investments do not require investors to be actively involved. But many passive investors can and do invest in single stocks as well.
Stocks to buy is a segment of the MySmallBank.com blog written by Allan R Kirby, who writes and produces investment and personal finance articles and videos.
Disclosure: mysmallbank.com nor the author received any compensation from the mentioned securities for this article. The article is our opinion only and is written to help readers learn more about the ETFs mentioned in this article. Consider this as basic information only and utilize professional services and additional sources before making an investment decision.