The Vanguard Dividend Appreciation ETF (VIG 0.31%) and the iShares Core High Dividend ETF (HDV +0.25%) differ most in dividend yield, sector mix, and risk profile, with VIG offering lower costs but HDV providing notably higher income.Both funds target U.S. dividend-focused strategies, but Vanguard Dividend Appreciation ETF screens for companies with a record of raising dividends, while iShares Core High Dividend ETF emphasizes stocks with the highest current yields. This matchup explores which approach may ...

Core Insights - The ProShares S&P Technology Dividend Aristocrats ETF (TDV) debuted on November 5, 2019, and offers broad exposure to the Technology ETFs category [1] - TDV is a smart beta ETF that aims to match the performance of the S&P Technology Dividend Aristocrats Index, focusing on companies in the technology sector [5] Fund Overview - TDV has accumulated over $265.55 million in assets, categorizing it as an average-sized ETF within the Technology ETFs [5] - The ETF has an annual operating expense of 0.45% and a 12-month trailing dividend yield of 0.99% [6] Sector Exposure and Holdings - Approximately 80.6% of TDV's portfolio is allocated to the Information Technology sector, with Industrials and Financials following [7] - The top three holdings include Lam Research Corp (3.62% of total assets), Monolithic Power Systems Inc, and Oracle Corp, with the top 10 holdings accounting for about 29.24% of total assets [8] Performance Metrics - As of November 4, 2025, TDV has gained about 17.35% year-to-date and approximately 17.6% over the past year [10] - The ETF has traded between $62.35 and $89.95 in the last 52 weeks, with a beta of 1.10 and a standard deviation of 19.65% over the trailing three-year period [10] Alternatives - Other ETFs in the market include iShares Core Dividend Growth ETF (DGRO) and Vanguard Dividend Appreciation ETF (VIG), with DGRO having $34.32 billion in assets and VIG at $97.88 billion [12] - DGRO has an expense ratio of 0.08% while VIG charges 0.05% [12]

Core Insights - The article emphasizes the importance of finding reliable passive income streams for a comfortable retirement, highlighting that Social Security and 401(k) plans may not suffice due to inflation and economic uncertainty [1]. Group 1: Dividend ETFs Overview - Many investors are turning to dividend ETFs as a solution for steady income and diversification [2]. - The article identifies five dividend ETFs that could enhance retirement portfolios by providing stability, growth, and lifetime income [2]. Group 2: Schwab U.S. Dividend Equity ETF (SCHD) - SCHD invests in quality companies from the Dow Jones U.S. Dividend 100 Index, focusing on strong financials and sustainable dividends [3]. - The ETF has an expense ratio of 0.06% and offers a yield of 3.85%, making it attractive for investors [4]. - SCHD is managed by Charles Schwab and includes notable holdings such as Cisco, PepsiCo, and Home Depot [4]. Group 3: Vanguard High Dividend Yield ETF (VYM) - VYM combines stability with high dividend payments, investing in over 500 companies with above-average yields [5]. - The fund has net assets exceeding $81 billion and maintains a low expense ratio of 0.06% [6]. - Key sectors for VYM include financials, consumer discretionary, and basic materials, with top holdings like Broadcom and JPMorgan Chase [6]. Group 4: Vanguard Dividend Appreciation ETF (VIG) - VIG focuses on companies with a history of increasing dividends, tracking the S&P U.S. Dividend Growers Index [7]. - The ETF has net assets over $115 billion and features a low expense ratio of 0.05%, making it cost-effective [8]. - Its main holdings are in financials, consumer discretionary, and information technology, including companies like Broadcom, JPMorgan Chase, and Microsoft [8].

Core Insights - The Schwab U.S. Dividend Equity ETF (SCHD) has experienced significant underperformance recently, trailing behind major competitors in the dividend ETF space [1][2] - Once a leader in dividend investing, SCHD's performance has declined sharply, raising questions among investors about its future viability [2][4] Performance Overview - SCHD was historically a top performer, ranking in the top third of Morningstar's Large Cap Value category for nine consecutive years and achieving a 5-star Morningstar rating [3] - The ETF's total assets under management (AUM) reached over $71 billion, making it the second-largest dividend ETF globally, only behind Vanguard's VIG [3] Reasons for Underperformance - The decline in SCHD's performance began in 2023, coinciding with the rise of technology stocks, particularly the "Magnificent 7," which have driven the S&P 500 higher [4] - SCHD's allocation to technology stocks is only 9%, compared to approximately 35% in the S&P 500, which has hindered its ability to keep pace with market gains [4] - The ETF has invested heavily in underperforming sectors such as energy and staples, with over 50% of its portfolio in three of the worst-performing sectors year-to-date [4] - SCHD has minimal exposure to growth stocks, with only 0.27% of the fund allocated to this category, while the S&P 500 has 56% in growth stocks [4]

Core Insights - Many retirees aim to create an investment portfolio that generates sufficient income through dividends and interest, necessitating a diverse range of asset classes including equities, fixed income, and alternatives like real estate [1] Fixed Income Environment - The fixed income market has seen significant improvements, with risk-free Treasury bills yielding around 4% and investment-grade corporate bonds offering nearly 5%. Junk bonds provide even higher yields, ranging from 6% to 7% [2] Equity Market Overview - The equity market presents a contrasting scenario, with the S&P 500 yielding a near-record low of 1.1%. Dividend ETFs typically yield between 2% to 3%, peaking at around 4% before associated risks increase. However, stocks also offer capital growth potential, making the combination of price appreciation and dividend income appealing [3] Retirement Portfolio Composition - A well-structured retirement portfolio should include a mix of various asset classes, with an emphasis on incorporating higher-yielding alternatives to enhance overall returns [5] Vanguard Dividend ETFs - Vanguard's popular dividend ETFs, such as the Vanguard Dividend Appreciation ETF (VIG) and the Vanguard High Dividend Yield ETF (VYM), are not considered high-yield options, with yields of 1.6% and 2.5% respectively [6] - Vanguard does offer high-yield ETFs, primarily in the fixed-income sector, which may not be as well-known but can serve as effective high-yield investments [7] Selecting Vanguard ETFs for Retirement - Dividend income can be sourced from various ETFs, with well-known options being suitable for many retirement portfolios due to their low costs, high liquidity, and effective stock-selection strategies [8] Specialized High-Yield Options - High-yield ETFs tend to focus on specialized niches or foreign markets, requiring a deeper understanding. While not advisable to heavily invest in these lesser-known ETFs, they can complement a portfolio by enhancing returns without significantly increasing risk [10]

Core Insights - The popularity of dividend stocks has shifted significantly, with a notable increase in assets under management in dividend-focused ETFs, such as the Schwab US Dividend Equity ETF (SCHD) with $70 billion [2] - The Vanguard Dividend Appreciation ETF (VIG), while larger at nearly $100 billion, offers a yield of only 1.6%, which is not substantially higher than the S&P 500 Index's yield, impacting the appeal for income-focused investors [3] - There is a growing concern about the sustainability of high-yield stocks, as reaching for yield can lead to financial and psychological distress during market downturns [4] ETF Performance - SCHD has shown a compounded annual return of nearly 9% over the past five years, resulting in a cumulative return of 47%, but has experienced a decline over the past 12 months, with a current yield of 3.8% just breaking even for shareholders [7] - The current market environment is causing some ETFs with higher yields to face vulnerabilities, although they are performing adequately for now [6] Investor Sentiment - Many investors may have a false sense of security in dividend-focused ETFs, as the market dynamics could lead to potential future turmoil [5] - The question remains on how long investors will tolerate the current performance of dividend stocks, especially in light of recent declines [7]

Market Overview - The S&P 500 Index has increased approximately 3.7% in September, leading to a year-to-date gain of 13% [1] - The Federal Reserve has implemented its first rate cut of 2025 in September, with expectations for two additional cuts this year [1] Economic Forecast - The U.S. economy is projected to grow by 1.9% in 2023 and 1.8% in 2026, slightly above previous estimates but still below recent trends [4] - Stronger-than-expected economic activity in Q3 is attributed to tech investment, with private sector activity and defense spending anticipated to be stronger than earlier forecasts [4] Consumer and Corporate Sentiment - Consumer confidence remains weak due to job security concerns and inflation, while corporations face uncertainty from changing trade policies [5] - Rising debt burdens and stringent immigration policies are adding pressure on consumers, impacting overall sentiment [5] Investment Strategy - A conservative investment approach is recommended for the upcoming quarter due to market fragility and potential for negative developments to unsettle markets [6] - Preserving capital and cushioning against volatility is essential for navigating this uncertain period [7] Defensive Investment Options - Increasing exposure to consumer staple ETFs can provide stability and balance in portfolios, with suggested funds including Consumer Staples Select Sector SPDR Fund (XLP), Vanguard Consumer Staples ETF (VDC), and iShares U.S. Consumer Staples ETF (IYK) [9] - Dividend-paying securities are highlighted as reliable income sources during market volatility, with recommended ETFs such as Vanguard Dividend Appreciation ETF (VIG), Schwab US Dividend Equity ETF (SCHD), and Vanguard High Dividend Yield Index ETF (VYM) [11][12] - Quality and value funds, along with volatility ETFs like iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX), are suggested for investors seeking defensive options [13]

Core Insights - The Vanguard Dividend Appreciation ETF is highlighted as a strong investment option for those seeking growing dividend income, emphasizing the reliability of cash flows in companies that pay dividends [1][10] - Historical data indicates that reinvested dividends have significantly contributed to the total returns of the S&P 500 Index, accounting for 85% of cumulative returns since 1960 [2] Performance Metrics - The Vanguard Dividend Appreciation ETF has a low expense ratio of 0.05%, translating to an annual cost of $5 for every $10,000 invested [5] - Recent performance averages for the ETF are as follows: - 3 years: 16.01% - 5 years: 12.69% - 10 years: 13.24% - 15 years: 12.79% - The ETF currently offers a dividend yield of 1.7%, compared to the S&P 500's yield of 1.2% [5][6] Dividend Growth - The ETF tracks the S&P US Dividend Growers Index, focusing on companies that have increased dividends for at least 10 consecutive years, suggesting potential for dividend growth at a rate faster than the S&P 500 [6] - Historical quarterly dividend payments show significant growth, with the dividend amount increasing from $0.288 in 2013 to $0.938 in 2025, more than tripling over 12 years [6] Top Holdings - The ETF includes approximately 330 holdings, with notable top stocks and their respective yields and weights: - Broadcom: 0.65%, 5.94% - Microsoft: 0.64%, 4.82% - JPMorgan Chase: 1.81%, 4.04% - Apple: 0.44%, 3.74% - Eli Lilly: 0.80%, 2.76% - Visa: 0.70%, 2.69% - ExxonMobil: 3.52%, 2.38% - Mastercard: 0.52%, 2.33% - Johnson & Johnson: 2.93%, 2.04% - Walmart: 0.91%, 2.01% [7] Growth Potential - Some companies within the ETF, like Broadcom, exhibit high dividend growth rates, with a 10-year average annual growth rate exceeding 30%, indicating potential for substantial share-price appreciation [8] Investment Considerations - When selecting a dividend-focused ETF, investors should weigh the importance of high yields versus fast-growing yields, with alternatives like the Schwab U.S. Dividend Equity ETF also being viable options [9] - The Vanguard Dividend Appreciation ETF is recommended for those seeking solid dividend income that is expected to grow over time, with a suggestion to invest incrementally rather than attempting to time the market [10]

Core Insights - The WisdomTree U.S. SmallCap Quality Dividend Growth ETF (DGRS) is designed to provide broad exposure to the small-cap blend market segment and was launched on July 25, 2013 [1] - DGRS has accumulated over $366.14 million in assets, positioning it as an average-sized ETF within its category [5] - The ETF seeks to match the performance of the WisdomTree U.S. SmallCap Quality Dividend Growth Index, which focuses on small-cap dividend-paying stocks with growth characteristics [5] Fund Characteristics - DGRS has an annual operating expense ratio of 0.38%, which is competitive within its peer group [6] - The ETF offers a 12-month trailing dividend yield of 2.57% [6] - The fund's top 10 holdings account for approximately 115.61% of its total assets under management, indicating a concentrated investment strategy [8] Performance Metrics - As of August 22, 2025, DGRS has experienced a year-to-date loss of approximately -2.82% but is up about 1.16% over the past year [9] - The ETF has traded between $40.64 and $56.61 in the last 52 weeks [9] - DGRS has a beta of 1.06 and a standard deviation of 20.94% over the trailing three-year period, categorizing it as a medium-risk investment [10] Alternatives and Market Position - DGRS is positioned as a reasonable option for investors looking to outperform the small-cap blend segment, but there are alternative ETFs available [11] - Notable alternatives include iShares Core Dividend Growth ETF (DGRO) with $33.27 billion in assets and Vanguard Dividend Appreciation ETF (VIG) with $94.44 billion [12] - DGRO has a lower expense ratio of 0.08%, while VIG has an expense ratio of 0.05%, making them potentially more attractive options for cost-conscious investors [12]

Core Viewpoint - The U.S. economy is showing signs of weakness, leading investors to seek stable income through dividend stocks and funds due to uncertainty from trade policies [1] Economic Indicators - Federal Reserve Governor Michelle Bowman is considering three interest rate cuts this year in response to the economic slowdown, with tariffs expected to have a one-time effect on price increases [2] - Monetary policy adjustments may lead to a short-term spike in inflation, but easing the policy rate is deemed necessary to prevent labor market weakness [3] Investment Strategies - Dividend investing remains a popular strategy amid market volatility, providing consistent income rather than dramatic price appreciation [4] - Dividend aristocrats, which are blue-chip companies with a history of increasing dividends, act as a hedge against economic uncertainty and offer downside protection [5] - High-dividend equities are appealing in a low-rate environment, as they can offset potential capital losses [7] ETF Recommendations - Vanguard Dividend Appreciation ETF (VIG) focuses on companies with a record of increasing dividends, charging 5 bps in fees [9] - SPDR S&P Dividend ETF (SDY) tracks high-yielding S&P constituents with a history of consistent dividend increases, charging 35 bps in fees [10] - Vanguard High Dividend Yield ETF (VYM) includes companies with above-average dividend payouts, charging 6 bps in fees and yielding 2.61% annually [11] - First Trust Rising Dividend Achievers ETF (RDVY) targets companies with a history of paying dividends, charging 48 bps in fees and yielding 1.42% annually [13]