3 High-Yield Dividend ETFs to Buy to Generate Passive Income
Even if you've only been investing a short time, you've likely learned the importance of spreading out your risk by diversifying your portfolio. Diversification comes in a variety of flavors, from gaining exposure to different sectors to buying stocks that have varying market capitalizations.Income investors, in particular, can benefit from diversifying their sources of passive income with exchange-traded funds (ETFs) that pay out more than the benchmark S&P 500's current yield around 1.2%. There are a variety of choices out there, but the Energy Select Sector SPDR Fund (NYSEMKT: XLE) iShares Select Dividend ETF (NASDAQ: DVY), and the Vanguard Utilities ETF (NYSEMKT: VPU) are all at the top of the heap for best ETF opportunities to generate strong passive income.For those eager to generate passive income and gain exposure to leading businesses in the energy sector, the Energy Select Sector SPDR Fund is a great choice. Mitigating the risk of investing in an individual energy stock, the fund attempts to offer investors a thorough representation of industry-leading oil and gas businesses to those that specialize in energy equipment and services, and consumable fuel businesses. Currently, it has a yield of 3% as well as a low expense ratio of 0.08%, so investors won't lose a significant portion of their dividends to fees.Continue reading
Even if you've only been investing a short time, you've likely learned the importance of spreading out your risk by diversifying your portfolio. Diversification comes in a variety of flavors, from gaining exposure to different sectors to buying stocks that have varying market capitalizations.
Income investors, in particular, can benefit from diversifying their sources of passive income with exchange-traded funds (ETFs) that pay out more than the benchmark S&P 500's current yield around 1.2%. There are a variety of choices out there, but the Energy Select Sector SPDR Fund (NYSEMKT: XLE) iShares Select Dividend ETF (NASDAQ: DVY), and the Vanguard Utilities ETF (NYSEMKT: VPU) are all at the top of the heap for best ETF opportunities to generate strong passive income.
For those eager to generate passive income and gain exposure to leading businesses in the energy sector, the Energy Select Sector SPDR Fund is a great choice. Mitigating the risk of investing in an individual energy stock, the fund attempts to offer investors a thorough representation of industry-leading oil and gas businesses to those that specialize in energy equipment and services, and consumable fuel businesses. Currently, it has a yield of 3% as well as a low expense ratio of 0.08%, so investors won't lose a significant portion of their dividends to fees.
