Quick Read A $1.2M portfolio combined with Social Security generates $85,300 annually using Vanguard Total Bond Market ETF (BND) for fixed income. Vanguard High Dividend Yield ETF holds JPMorgan Chase, Johnson & Johnson and Procter & Gamble with a 2.39% yield. Investors rethink ‘hands off’ investing and decide to start making real money A dual-income couple approaching retirement with $1.2 million in savings and Social Security benefits faces a critical question: Will this be enough? The answer de ...

Quick Read iShares EAFE ETF (IEFA) gained 25.6% over the past year and yields 3.48%. Berkshire’s NEAM increased IEFA holdings by 35.2%. Vanguard High Dividend ETF tracks 571 stocks yielding 2.39% and represents 4.62% of NEAM’s portfolio. iShares Developed Markets ETF (IDEV) gained 26.5% in the past year. NEAM increased IDEV holdings by 30.1%. A recent study identified one single habit that doubled Americans’ retirement savings and moved retirement from dream, to reality. Read more here. Warren ...

Core Viewpoint - The case for dividend-paying stocks is strengthening as investors look towards 2026, with evidence suggesting a potential uptrend has already begun [1] Group 1: ETF Performance - Over the past three months, the Vanguard High Dividend Yield ETF (VYM) has outperformed both the S&P 500 and the Nasdaq-100 indices, indicating a market shift away from megacap stocks [2] - The current yield of the Vanguard High Dividend Yield ETF is 2.5%, which is more than double the S&P 500's yield of 1.1%, suggesting a favorable income opportunity [4] Group 2: ETF Strategy and Holdings - The Vanguard High Dividend Yield ETF selects U.S. stocks based on their forecasted dividends over the next 12 months, focusing on those with above-average yields and weighted by market cap [3] - The ETF currently has a 14% allocation to tech stocks, with its top sector holdings being Financials (21%), Tech (14.3%), Industrials (12.9%), and Healthcare (12.8%), providing a diversified exposure to sectors with growth potential [5][6] Group 3: Economic Context - The economic backdrop, characterized by steady GDP growth, low unemployment, and stable inflation, is favorable for further gains in stock prices, particularly for value and dividend stocks [7] - Financials are benefiting from prolonged higher interest rates, leading to improved profit margins, while increased merger and acquisition activity is generating significant revenue for major banks [9] - Industrials may see cyclical upside if economic expansion continues, and the healthcare sector is experiencing innovation and potential regulatory relief, which could accelerate drug approvals and reduce compliance costs [9]

分组1 - The article emphasizes the importance of ongoing investment tracking and suggests that exchange-traded funds (ETFs) can simplify the investment process [1] - For income-focused investors, the article highlights three ETFs: Vanguard High Dividend Yield ETF, Schwab U.S. Dividend Equity ETF, and Amplify CWP Enhanced Dividend Income ETF [2] - Vanguard High Dividend Yield ETF offers a yield of 2.4%, significantly higher than the S&P 500's 1.1%, providing diversification with around 560 holdings, primarily in the financial sector [4][5] 分组2 - Schwab U.S. Dividend Equity ETF employs a rigorous screening process, selecting only 100 stocks that have increased dividends for at least 10 years, focusing on financial strength and growth [7][8] - The article suggests that Vanguard High Dividend Yield ETF could serve as a replacement for the S&P 500 index in a portfolio, while Schwab U.S. Dividend Equity ETF focuses on financially strong dividend stocks [8]

Core Insights - The article discusses retirement planning with a focus on managing a portfolio of $1.8 million, emphasizing the importance of withdrawal rates and income generation strategies [1][3][9] Withdrawal Strategies - A 4% withdrawal rate from a $1.8 million portfolio allows for an annual income of approximately $72,000, which can last for about 30 years under historical return assumptions [3][9] - Conservative planners may start with a 3.5% withdrawal rate, generating around $63,000 annually, while a 5% rate could yield $90,000, providing flexibility in spending [2][3] Income Generation - A balanced portfolio could consist of 40% in dividend-paying stocks, 35% in bonds, 20% in REITs, and 5% in cash reserves, potentially generating between $72,000 and $81,000 annually without selling assets [10][12] - Specific investment options include the Vanguard High Dividend Yield ETF and the JPMorgan Equity Premium Income ETF, which can contribute significantly to annual income [11][12] Lifestyle Considerations - Retiring with $1.8 million allows for a comfortable lifestyle, but careful spending decisions are necessary to avoid financial strain [5][7] - Location plays a crucial role in determining the quality of life supported by this amount, with varying costs of living impacting discretionary spending [8] Healthcare and Taxes - Healthcare costs are a significant factor in retirement planning, with a 65-year-old couple expected to pay around $200,000 in lifetime medical expenses [13][14] - Taxes on withdrawals from traditional IRAs can significantly reduce available income, necessitating careful financial planning [15]

Core Insights - Exchange-traded funds (ETFs) are highlighted as effective tools for long-term wealth building, offering diversification, risk limitation, and potential passive income generation [1][2] Group 1: Vanguard S&P 500 ETF - The Vanguard S&P 500 ETF (VOO) is a popular choice among investors, tracking the S&P 500 index which includes around 500 large and established U.S. companies [4] - Historical analysis indicates that the S&P 500 has never experienced negative total returns over any 20-year period, making it a reliable investment during market volatility [5] - Over the past decade, the Vanguard S&P 500 ETF has achieved total returns of 239%, meaning a $5,000 investment would have grown to nearly $17,000 [8] Group 2: Vanguard Total Stock Market ETF - The Vanguard Total Stock Market ETF (VTI) offers broader diversification by encompassing 3,531 stocks from various market capitalizations and industries [9] - While it has slightly underperformed the S&P 500 ETF in the last decade, its exposure to small-cap and mid-cap stocks provides potential for growth [12][13] - The overall market has a strong track record of recovering from downturns, which applies to this ETF as well [10] Group 3: Vanguard High Dividend Yield ETF - The Vanguard High Dividend Yield ETF (VYM) focuses on dividend-paying stocks, containing 566 companies with high dividend yields, and pays quarterly dividends [15] - Reinvesting dividends can create a compounding effect, potentially leading to significant passive income over time [16] - Although it has underperformed compared to the S&P 500 and Total Stock Market ETFs, its high dividend yield offers a cushion during market downturns [18]

Core Insights - The tech and AI stocks have performed well, but there are concerns that this rally may soon lose momentum, with gains primarily concentrated in large-cap and growth stocks, leaving value and defensive stocks underperforming in 2025 [1][2][3] Economic Conditions - As 2026 approaches, the economic environment remains favorable for stock gains, with indicators suggesting continued U.S. economic growth, contained inflation, and a low unemployment rate, although some signs indicate a potential rise in unemployment [2][3] Investment Opportunities - Investors are considering diversifying away from tech and AI stocks due to valuation concerns and the search for alternative investments, which may lead to a new set of market leaders in 2026 [3] Vanguard Mid-Cap Value ETF - The Vanguard Mid-Cap Value ETF (VOE) presents an attractive option for investors looking to shift from large-cap and tech stocks, offering a solid growth profile with lower risk compared to small-cap stocks [5][6] - The ETF's largest sector allocations are in industrials (17.4%) and financials (15.1%), which have shown positive performance in 2025, and its P/E ratio of 18 is significantly lower than the S&P 500's 28 [7] Vanguard High Dividend Yield ETF - The Vanguard High Dividend Yield ETF (VYM) may benefit from a resurgence in dividend stocks after years of underperformance, with a selection strategy focused on above-average yielding stocks [9][10] - Key sector allocations include financials (21.1%), technology (14.1%), industrials (13.5%), and healthcare (12.3%), with industrials outperforming the S&P 500 year-to-date [10] Vanguard Emerging Markets ex-China ETF - The Vanguard Emerging Markets ex-China ETF (VEXC) launched recently and is positioned well for international stock potential, with a P/E of 17, approximately 40% lower than the S&P 500 [13] - The exclusion of China is a cautious approach due to ongoing struggles in the manufacturing sector and uncertainties stemming from China's real estate crisis [14] Vanguard Total Stock Market ETF - The Vanguard Total Stock Market ETF (VTI) offers a balanced approach, maintaining large-cap exposure while incorporating mid-cap and small-cap allocations, allowing investors to capture potential in undervalued market areas [17]

Core Viewpoint - The Vanguard High Dividend Yield ETF is designed for investors seeking steady and predictable income through above-average yields from large, well-established companies [1][6]. Group 1: ETF Performance and Yield - As of December 4, 2025, the Vanguard High Dividend Yield ETF offers an annualized yield of 2.5%, translating to approximately $3.59 in annual dividends per share at a share price of $145.17 [2]. - To earn $500 in annual dividends, an investor would need to invest about $20,360, assuming the current yield and share price remain constant [2]. Group 2: ETF Composition and Strategy - The ETF holds 566 stocks as of October 31 and has an ultra-low expense ratio of 0.06% [5]. - It focuses on the top 50% of companies by forecasted dividend yield, excluding real estate investment trusts (REITs), which helps ensure strong diversification and mitigates risks associated with unsustainable dividend payouts [3][4]. - The top five sector holdings include financials (21.1%), technology (14.1%), industrials (13.5%), healthcare (12.3%), and consumer discretionary (9.8%), with major individual holdings like Broadcom, JPMorgan Chase, and ExxonMobil [5].

Core Viewpoint - The article emphasizes the potential of generating passive income through dividend ETFs, specifically highlighting the Vanguard High Dividend Yield ETF (VYM) as a viable option for achieving significant annual dividends with consistent investments over time [2][6]. Investment Strategy - Investing in VYM allows individuals to track the FTSE High Dividend Yield Index, which includes U.S. companies with a history of stable dividends and specific financial criteria, ensuring a focus on established businesses [3][4]. - VYM is diversified across various sectors, including Financials (21.1%), Technology (14.1%), and Industrials (13.5%), among others, with a total of 566 holdings [5][4]. Financial Performance - VYM has averaged 10.7% annual total returns over the past decade, with an average dividend yield of 3% [6][7]. - A monthly investment of $500 could lead to substantial growth over time, with projections showing potential annual dividend payouts of $2,958 after 10 years, $6,015 after 15 years, and $11,088 after 20 years [8][10]. Reinvestment Strategy - Reinvesting dividends through a Dividend Reinvestment Plan (DRIP) is recommended to maximize long-term returns, as it accelerates the compounding of earnings [11][12]. - Initial cash payouts may be minimal, but reinvesting dividends can significantly enhance total returns over time [12].

Group 1 - The article highlights three high-yield ETFs as strong buy-and-hold opportunities: Vanguard High Dividend Yield ETF, Invesco High Yield Equity Dividend Achievers ETF, and Schwab US Dividend Equity ETF [1] - Vanguard High Dividend Yield ETF offers diversification with over 566 dividend-paying stocks, comparable to the S&P 500 index [3][4] - A $500 investment in Vanguard High Dividend Yield ETF would yield approximately 2.5%, which is more than double the S&P 500 index yield [5] Group 2 - Invesco High Yield Equity Dividend Achievers ETF focuses on stocks that have increased dividends for at least a decade, selecting the top 50 highest-yielding stocks [6] - This ETF weights stocks by dividend yield rather than market cap, giving more influence to higher-yield stocks [6]