3 Ultra-Cheap Dividend ETFs to Buy and Hold Forever and Snowball Your Money
Yahoo Finance·2026-02-12 18:56

Core Insights - Low-cost dividend ETFs are recommended for long-term buy-and-hold strategies, providing good dividend growth and yields with minimal fees [2][3] - These ETFs can serve as a stable foundation for investment portfolios, especially in uncertain market conditions [3] Vanguard Dividend Appreciation Index Fund ETF (VIG) - VIG is known for its low expense ratio, recently reduced to 0.04%, equating to $4 per $10,000 invested [4][8] - The ETF focuses on companies that grow their dividends faster than average, with a 5-year dividend growth rate of 9.15% annually and a current dividend yield of 1.55% [6][8] - VIG has a manageable tech exposure, which has not negatively impacted its safety [5] Other Notable ETFs - SPDR Portfolio S&P 500 High Dividend ETF (SPYD) offers a yield of over 4%, with 21% allocation to Real Estate and only 0.94% in tech [8] - Schwab US Dividend Equity ETF (SCHD) has returned 14.5% year-to-date in 2026, matching VIG's 9.15% dividend growth while maintaining lower tech exposure [8]