If I Could Buy Only 1 High-Yield Dividend ETF for Passive Income in September, This Would Be It

Core Insights - The SPDR Portfolio S&P 500 High Dividend ETF is recommended for dividend-seeking investors due to its potential for passive income generation [1][4] - The current low-interest-rate environment makes dividends from stocks increasingly important for passive-income portfolios [2][3] ETF Overview - The SPDR Portfolio S&P 500 High Dividend ETF tracks the S&P 500 High Dividend Index, consisting of 80 high-yield stocks with equal weight assigned to each stock [6] - The ETF's largest sector allocation is in real estate at 22.4%, followed by consumer staples (16.7%), financials (15.5%), utilities (12.9%), and healthcare (8%) [6] Comparison with Other ETFs - In contrast, the SPDR S&P 500 ETF Trust has a significant allocation in information technology at 34.6%, with lower yields of 1.1% compared to the 4.7% yield of the SPDR Portfolio S&P 500 High Dividend ETF [7][8] Cost Efficiency - The SPDR Portfolio S&P 500 High Dividend ETF has a low expense ratio of 0.07%, which is lower than the average expense ratio of 0.14% for equity index ETFs in 2024 [9][10] Performance Metrics - Over the last five years, the SPDR Portfolio S&P 500 High Dividend ETF has returned an annualized 14.8%, slightly outperforming the S&P 500 ETF's 14.6% return, although it has higher volatility [11] - The ETF is expected to deliver strong returns and lower volatility in the current market environment due to its focus on dividend-paying stocks [12]