Key Points VNQ holds over five times more assets under management than XLRE and owns a much broader mix of real estate stocks Both ETFs delivered identical 1-year returns and saw similar growth of $1,000 over five years VNQ yields 0.5 percentage points more than XLRE and has an expense ratio of 0.13%, compared to XLRE's 0.08%. These 10 stocks could mint the next wave of millionaires › The State Street Real Estate Select Sector SPDR ETF (XLRE) and the Vanguard Real Estate ETF (VNQ) differ most in ...

Rate Cuts Are the Catalyst Real Estate Needs The Columbia Research Enhanced Real Estate ETF (NYSE:CRED) launched in April 2023 at exactly the wrong moment. Real estate had just entered a brutal bear market triggered by the Federal Reserve's fastest rate hiking cycle in four decades. Since inception, CRED has delivered a negative 1.6% return while managing just $3.1 million in assets, creating liquidity concerns for anyone building a meaningful position. But the thesis for buying now isn't about 2023 or 2024 ...

President Donald Trump’s Truth Social launched a suite of ETFs for “patriotic investors” All five Truth Social ETFs have an annual expense ratio of 0.65% or 65 basis points Truth Social American Red State REITs ETF (NYSE American: TSRS) targets operators in states where a Republican won at least two out of last three elections Major ETFs with similar REIT strategies such as Schwab charge as little as 7 basis points for a diversified mix of U.S. REIT investments By John Jannarone This week, Tru ...

Assuming you start with a 4% withdrawal rate and $72,000 in annual income, focusing on Social Security benefits takes on a higher priority. As it stands at the end of 2025, the average monthly benefit for Social Security recipients is approximately $1,920 or $23,000 annually, and this number roughly doubles for couples. Assuming these numbers are realistic, this would give someone with $1.8 million in household income an annual pre-tax income of between $110,000 and $120,000.Conservative planners who want t ...

Core Insights - The article discusses various ETFs that provide opportunities for generating passive income through high dividend yields and minimal management requirements [1] Group 1: Schwab U.S. Dividend Equity ETF (SCHD) - Schwab U.S. Dividend Equity ETF tracks the Dow Jones U.S. Dividend 100 Index, focusing on high-yielding dividend stocks with quality characteristics [3][4] - The ETF has an average yield of 3.8% and has increased its income payments by over 500% since its inception in 2011, with a low expense ratio of 0.06% [4][5] - The fund's top holding has a 4.4% weighting, emphasizing high-quality dividend stocks [4] Group 2: Pacer Global Cash Cows Dividend ETF (GCOW) - Pacer Global Cash Cows Dividend ETF targets companies with high free-cash-flow yields and high dividend yields, with an average free-cash-flow yield of 6.2% and a dividend yield of 4.7% [6][8] - The fund's income yield to investors is approximately 4%, with a higher expense ratio of 0.6% compared to passively managed funds [8] Group 3: SPDR Portfolio S&P 500 High Dividend ETF (SPYD) - SPDR Portfolio S&P 500 High Dividend ETF tracks the S&P 500 High Dividend Index, selecting 80 high-yielding companies with an average dividend yield of 4.5% [9][10] - The fund has a low expense ratio of 0.07% but has seen less than 50% growth in payments since its inception in 2015, focusing primarily on high income yield [10] Group 4: Vanguard Real Estate ETF (VNQ) - Vanguard Real Estate ETF invests in companies that own commercial real estate, primarily real estate investment trusts (REITs), which must distribute 90% of taxable income as dividends [11][12] - The fund has a current yield of 3.6% and charges a reasonable expense ratio of 0.13%, providing broad exposure to the REIT sector [13] Group 5: Summary of ETF Characteristics - Each ETF offers unique advantages: SCHD balances yield and growth, GCOW prioritizes income and capital gains, SPYD maximizes dividend yield with slower growth, and VNQ targets the real estate sector [14]

Core Insights - Investing in ETFs, particularly those from Vanguard, is highlighted as a simple method for generating lasting passive income [1] Group 1: Vanguard High Dividend Yield ETF - The Vanguard High Dividend Yield ETF (VYM) tracks a diversified index of high-yielding dividend stocks, currently offering a dividend yield of 2.5%, which is more than double that of the S&P 500 at 1.2% [2] - The ETF holds over 560 stocks, including top dividend-paying companies like ExxonMobil, which has a yield of 3.5% and has increased its dividend for 42 consecutive years [3] - The focus on higher-yielding dividend stocks positions this fund to provide above-average and steadily rising dividend income in the future [4] Group 2: Vanguard Real Estate ETF - The Vanguard Real Estate ETF (VNQ) invests in REITs and other real estate companies, currently yielding over 3.5% [5] - It holds over 150 REITs, with Prologis as a top holding, yielding 3.3% and increasing its payout by 13% annually over the past five years, outpacing the S&P 500's 5% growth rate [6] - Investing in REITs through this fund offers a straightforward way to generate passive income from real estate [7] Group 3: Vanguard Total Bond Market ETF - The Vanguard Total Bond Market ETF (BND) provides broad exposure to the U.S. dollar-denominated bond market, with a current yield of 4.1% [8][10] - The fund holds over 11,400 investment-grade bonds, with more than 69% backed by the U.S. government, which helps lower the risk profile [9] - The income yield from this fund will fluctuate with interest rate changes, but it is expected to provide a steady stream of interest income over the long term [10] Group 4: Overall Investment Strategy - The combination of VYM, VNQ, and BND offers a diversified approach to generating passive income, with each fund contributing from different asset classes [11]

Core Insights - The S&P 500 and Nasdaq are nearing all-time highs, with many popular stocks and ETFs appearing expensive, particularly mega-cap technology stocks [1] - There are still relatively cheap areas in the market, specifically small-cap stocks and real estate investment trusts (REITs), which may present investment opportunities for long-term investors [2] Small-Cap Stocks - The Vanguard Russell 2000 ETF tracks the performance of the Russell 2000 index, which consists of 2,000 small-cap companies with a median market cap of $3.4 billion [4] - The ETF is highly diversified, with no single stock accounting for more than 0.74% of its assets, making it a suitable option for investors seeking exposure to smaller companies [4] Real Estate Investment Trusts (REITs) - The Vanguard Real Estate ETF invests in an index of REITs that own various types of commercial real estate, including retail properties and data centers [5] - This ETF is more concentrated, with the 10 largest holdings comprising 39% of total assets, indicating that some REITs are significantly larger than the average in the sector [6] - The Vanguard Real Estate ETF is designed as an income investment, offering a yield of nearly 4% through dividends passed from its components [6] Investment Timing - The current valuation gap between small-cap and large-cap stocks, along with a likely falling-rate environment, could favor small-cap stocks and rate-sensitive sectors like real estate [9] - Both the Vanguard Russell 2000 ETF and the Vanguard Real Estate ETF are positioned as attractive entry points for long-term investments [8]

Group 1 - Vanguard offers a variety of index funds, many of which pay dividends, making them suitable for long-term investors [1] - The Vanguard Real Estate ETF (VNQ) has underperformed the S&P 500 over the past decade but may be at a turning point [2] - The ETF invests in real estate investment trusts (REITs), which are companies that hold real estate assets and benefit from tax advantages by distributing at least 90% of taxable income as dividends [4] Group 2 - The Vanguard Real Estate ETF consists of 154 stocks, with top holdings including Welltower (6.2%), Prologis (5.9%), and American Tower (5.4%) [5] - The ETF has a low expense ratio of 0.13% and an annualized yield of nearly 4% [6] - Over the past decade, the ETF has returned 77%, significantly lower than the S&P 500's 307% return, primarily due to macroeconomic factors [7][8] Group 3 - REITs are sensitive to interest rates, and the current federal funds rate is 400 basis points higher than it was a decade ago, impacting their performance [9]

分组1: Federal Reserve Interest Rate Cuts - The Federal Reserve cut the target for the Fed funds rate by 0.25% and indicated the possibility of two more cuts this year and another in 2026 [1] - The prime rate, which is typically three percentage points above the Fed funds rate, is expected to react quickly to these cuts, impacting loans and credit [1] - The Fed is balancing the need to support the job market while managing rising inflation [1] 分组2: Real Estate Investment Trusts (REITs) - REITs, celebrating their 65th anniversary, offer investors a way to buy shares in companies that own diversified portfolios of income-producing real estate [2] - The yield on the Vanguard real estate ETF is currently 3.8%, significantly higher than the S&P 500's yield of 1.2% [2] - Historically, equity REITs have returned an average of 11% per year since 1972, comparable to the S&P 500, but they provide diversification benefits due to differing performance patterns [2][3] 分组3: Retirement Calculators - A study in 2018 found that many retirement calculators are inaccurate, which can mislead users about their retirement readiness [9] - A high-quality retirement calculator should allow for year-by-year cash flow visualization and customization of inputs such as account types and life expectancy [12][14] - Tools like CalcXML and ProjectionLab are recommended for their features, including cash flow analysis and Monte Carlo simulations for better accuracy in retirement planning [15][19]

Core Viewpoint - The Federal Reserve is shifting focus from combating inflation to supporting economic growth, creating investment opportunities in certain sectors as interest rates are expected to decline [2][3][13]. Group 1: Economic Indicators - Producer prices unexpectedly dropped in August, indicating a potential end to the Fed's inflation battle [2]. - The U.S. government revised past employment figures downward by 911,000 jobs, prompting a shift in monetary policy [2]. Group 2: Investment Opportunities - Bank of America projects two 25-basis-point cuts this year, while Goldman Sachs anticipates three cuts in 2025 and two more in 2026, potentially lowering rates to 3.00% to 3.25% [3]. - Certain sectors and strategies are expected to thrive as rates fall, with exchange-traded funds (ETFs) being a clean way to capture these trends [3]. Group 3: Small-Cap Stocks - The iShares Russell 2000 ETF is highlighted as a direct beneficiary of lower rates, as small-cap companies are more sensitive to borrowing costs [5]. - The Russell 2000 has lagged behind the S&P 500 during the Fed's hiking cycle, creating a potential for significant gains as rates decline [5][6]. - The ETF has an expense ratio of 0.19% and a P/E ratio of 17.4, making small-caps appear relatively cheap compared to large-caps [6]. Group 4: Biotech Sector - The SPDR S&P Biotech ETF offers exposure to small- and mid-cap biotechs that are sensitive to capital market conditions [7]. - The biotech industry has faced significant declines during the rate-hiking cycle, with many stocks down 70% to 80% from their peaks [9]. - The ETF has a 0.35% expense ratio and is positioned to benefit from increased merger activity as funding concerns ease with falling rates [8][9]. Group 5: Real Estate Investment Trusts (REITs) - The Vanguard Real Estate ETF provides income and stability, with REITs benefiting from lower rates as financing costs decrease [10]. - The fund yields 3.76%, significantly higher than the S&P 500's 1.3%, and has an expense ratio of 0.13% [11]. - REITs must distribute 90% of taxable income as dividends, making them an attractive income source as bond yields decline [11]. Group 6: Portfolio Construction - A balanced approach to investing in rate cuts includes the iShares Russell 2000 ETF for small-cap exposure, the SPDR S&P Biotech ETF for speculative upside, and the Vanguard Real Estate ETF for defensive income [12]. - These ETFs provide tools for investors to capitalize on the Fed's pivot towards lower rates and potential economic growth [13].