2 Vanguard ETFs That Can Be Cash-Generating Machines for Your Portfolio for Years to Come

Core Insights - The article emphasizes the attractiveness of exchange-traded funds (ETFs) for long-term investors seeking quality investments that generate recurring income through dividends [1] Group 1: Vanguard Dividend Appreciation ETF - The Vanguard Dividend Appreciation ETF offers a dividend yield of 1.6%, slightly above the S&P 500 average of 1.2%, with a focus on dividend growth, making it appealing for long-term investors [3] - The fund has a low expense ratio of 0.05%, which is significant for long-term investing as lower fees can lead to higher returns over time [4] - The ETF holds over 330 quality dividend stocks, with Broadcom, Microsoft, and JPMorgan Chase as the top three holdings, where Broadcom constitutes about 6% of the portfolio, providing good diversification [5] - In 2025, the fund has generated total returns of 11%, which is close to the S&P 500's 14%, indicating potential resilience in down years due to its dividend growth [6] Group 2: Vanguard High Dividend Yield ETF - The Vanguard High Dividend Yield ETF offers a higher yield of around 2.5%, more than double the S&P 500 average, focusing on high-yielding stocks with 579 holdings as of August 31 [7] - The fund has a low expense ratio of 0.06%, making it a cost-effective option for investors [7] - There is some overlap with the Dividend Appreciation ETF, as Broadcom and JPMorgan Chase are also top holdings, while ExxonMobil, with a 3.5% yield, is among the top three in this fund [8] - Despite the higher risk associated with high-yielding stocks, the ETF's diversification mitigates this risk, as no single stock, apart from Broadcom and JPMorgan Chase, accounts for more than 3% of the portfolio [9] - This year, the ETF's returns have been consistent with the Dividend Appreciation ETF, both achieving over 11% returns including payouts, making them strong long-term investment options [10]