S&P 500 Index Funds Yield Just 1.3%. Consider Buying These 2 Low-Cost Vanguard ETFs to Generate More Passive Income.
The heaviest weighted components of the S&P 500 are companies like Apple, Microsoft, and Nvidia -- tech leaders that tend to reward their shareholders largely through their rising stock prices rather than by distributing dividends.The growing influence of tech stocks on the overall behavior of the large-cap index has dropped the S&P 500's yield down to just 1.3%. So investors seeking both diversification and a passive income stream that's a bit more robust will need to look beyond the basic S&P 500 index funds -- perhaps to some dividend-focused exchange-traded funds (ETFs).Here's why I think the Vanguard Dividend Appreciation ETF (NYSEMKT: VIG) and the Vanguard High Dividend Yield ETF (NYSEMKT: VYM) are worth buying now.Continue reading
The heaviest weighted components of the S&P 500 are companies like Apple, Microsoft, and Nvidia -- tech leaders that tend to reward their shareholders largely through their rising stock prices rather than by distributing dividends.
The growing influence of tech stocks on the overall behavior of the large-cap index has dropped the S&P 500's yield down to just 1.3%. So investors seeking both diversification and a passive income stream that's a bit more robust will need to look beyond the basic S&P 500 index funds -- perhaps to some dividend-focused exchange-traded funds (ETFs).
Here's why I think the Vanguard Dividend Appreciation ETF (NYSEMKT: VIG) and the Vanguard High Dividend Yield ETF (NYSEMKT: VYM) are worth buying now.
