Core Insights - Recessions are normal in the business cycle but can be financially devastating, leading to economic decline, increased unemployment, reduced wages, business failures, and market contractions [2] - Dividend ETFs are utilized by investors to protect their portfolios from the adverse effects of economic downturns [2] Dividend ETF Characteristics - Not all dividend ETFs are equal; those that perform well during recessions typically invest in high-quality companies with strong financials, consistent dividend payouts, and low volatility [3] - These resilient ETFs are often concentrated in defensive sectors that tend to remain stable across various market cycles [3] Recommended Dividend ETFs - **Vanguard High Dividend Yield ETF (VYM)**: Invests in over 500 large value companies, yielding around 2.44% with a five-year return of over 64% and a low expense ratio of 0.06% [5][6] - **Schwab U.S. Dividend Equity ETF (SCHD)**: Focuses on high-quality companies with sustainable dividends, yielding about 4% and achieving a five-year return of over 35%, also with a low expense ratio of 0.06% [7] - **Vanguard Dividend Appreciation ETF (VIG)**: Targets companies with a history of increasing dividends, diversified across more than 300 large-cap companies, with 27% of its portfolio in the information technology sector benefiting from the AI boom [8]

  Key PointsSCHD combines a 4% yield with a 35%+ five-year return and 0.06% expense ratio.JEPI generates an 8%+ yield by pairing S&P 500 large-cap stocks with options sales.VYM holds nearly 600 stocks and delivered a 64% five-year return.Investors rethink 'hands off' investing and decide to start making real money If you’re just jumping into the world of investing, the markets can seem intimidating. Maybe you feel you don’t have the time or know-how to carefully pick winning stocks for your portfolio. ...

Quick Read ProShares Russell 2000 High Income (ITWO) yields 11.37%. iShares Treasury BuyWrite (TLTW) yields 14.71%. Westwood Midstream Income (MDST) yields 9.03%. ITWO’s daily reset covered call approach captures more upside than traditional monthly covered call ETFs. MDST holds midstream energy pipelines earning fee-based revenues from increased US energy exports to Europe. Investors rethink 'hands off' investing and decide to start making real money If you have a long-term focus and you also wa ...

When rates begin to fall, securities like bonds tend to look less effective and attractive due to their low yields. ...

Even if you've amassed a substantial amount of retirement savings over the years, unpredictable events such as market downturns can take a serious crack at your nest egg. ...

Core Insights - Warren Buffett retains an indirect stake in a secret portfolio that includes exposure to several dividend ETFs through Berkshire Hathaway's New England Asset Management [2][3] - Despite no longer being CEO, Buffett remains Chairman and holds significant shares, particularly A-class shares with voting power [3] ETF Analysis - **iShares Core MSCI EAFE ETF (IEFA)**: - Tracks the MSCI EAFE IMI Index, providing exposure to developed-market stocks outside the U.S. and Canada, including Europe, Japan, Australia, and Hong Kong [5] - Gained 25.6% over the past year, with a dividend yield of 3.48% distributed biannually and an expense ratio of 0.07% [6] - NEAM's holdings in IEFA increased by 35.2%, making it the third-largest holding at 6.37% of its portfolio [6][8] - **Vanguard High Dividend Yield ETF (VYM)**: - Passively tracks higher-dividend-yielding companies matching the FTSE High Dividend Yield index, including REITs [7] - Represents 4.62% of NEAM's portfolio, yielding 2.39% [8] - **iShares Core MSCI International Developed Markets ETF (IDEV)**: - Gained 26.5% in the past year, with NEAM increasing its holdings by 30.1% [8]

Core Insights - JEPQ yields 11.6% by selling covered calls on large-cap growth stocks and distributing option premiums to investors [1] - VYMI offers a 3.64% yield with exposure to 1,534 international dividend stocks including Nestlé and Toyota [1] Group 1 - JEPQ utilizes a strategy of selling covered calls to generate high yields for investors [1] - The fund focuses on large-cap growth stocks, indicating a targeted investment approach [1] - The distribution of option premiums is a key feature of JEPQ's investment strategy [1] Group 2 - VYMI provides a diversified exposure to international dividend stocks, enhancing its yield potential [1] - The inclusion of well-known companies like Nestlé and Toyota highlights the quality of the underlying assets [1] - The yield of 3.64% positions VYMI as an attractive option for income-focused investors [1]

Core Insights - Investors, particularly retirees, are increasingly incorporating dividend-paying stocks and ETFs into their portfolios to secure passive income during retirement [2][3] - Evaluating dividend ETFs requires looking beyond yield; the best funds have a history of consistent dividend payments and strong financial fundamentals [3] Group 1: Schwab U.S. Dividend Equity ETF (SCHD) - SCHD invests in high-quality companies with sustainable dividend distributions and strong fundamentals, focusing on sectors like energy, consumer staples, and healthcare [5] - The fund generates a yield of nearly 4%, approximately 28 cents per share, and holds about $71 billion in net assets [6] - SCHD features an ultra-low expense ratio of 0.06%, making it competitive in the ETF market [6] Group 2: Vanguard High Dividend Yield ETF (VYM) - VYM offers broad diversification by investing in over 500 stocks with above-average dividend yields, primarily in basic materials, consumer discretionary, and consumer staples [7] - The fund currently delivers a yield of about 2.45% and holds net assets exceeding $84 billion [7] - VYM also has a low expense ratio of 0.06%, consistent with Vanguard's reputation for cost-effective funds [7] Group 3: Additional Insights - JEPI generates over 8% yield by combining dividend stocks with options selling strategies, highlighting diverse income-generating approaches in the ETF space [8]

Core Viewpoint - There is increasing pressure on the Federal Reserve to continue cutting interest rates, which is expected to benefit dividend ETFs such as Direxion Daily 20+ Year Treasury Bull 3X Shares, iShares Preferred and Income Securities, and Schwab US TIPS ETF [1] Group 1 - The Federal Reserve is facing mounting pressure to lower interest rates further [1] - Dividend ETFs are positioned to be the primary beneficiaries of potential interest rate cuts [1]

Core Viewpoint - Investing is primarily about long-term commitment to generate a sustainable income stream for retirement [1] Group 1 - Many investors focus on long-term strategies to ensure financial stability during retirement [1]