Displaying items by tag: dividend ETFs

Investors are preparing for significant shifts as U.S. elections and potential rate cuts approach in late 2024. While many have established their core holdings, adding targeted investments could help capture emerging market opportunities. 

Dividend-focused strategies offer both additional income and insights into a company's growth outlook; robust dividends may signal confidence, while lower payouts could suggest caution. The T. Rowe Price Dividend Growth ETF (TDVG), for example, invests in stocks with strong financials and dividend growth potential, leveraging active management to achieve higher returns. 

Over the past year, TDVG has returned 17% and averages 13% annually since its 2020 inception, using a strategy that evaluates balance sheets, cash flow, and competitive positioning. 

Finsum: Investors looking to pick up equity exposure and income this fall should be eyeing up dividend ETFs.

Investors are increasingly drawn to exchange-traded funds (ETFs) for passive income and capital growth, with demand surging recently. By June, European ETFs surpassed $2 trillion in assets under management, with a notable 88% year-on-year increase in funds raised.

Two notable ETFs for passive income are the iShares Euro Dividend UCITS ETF, which offers a 6% yield, and the L&G Quality Equity Dividends ESG Exclusions UK UCITS ETF, with a 4.6% yield. Both funds provide solid dividend income and diversification, though they have their own risks, including economic downturns in their respective regions.

ETFs offer significant advantages, such as risk management through diversification across various assets, including stocks, bonds, and commodities. While individual stocks might yield higher returns, ETFs can still be highly profitable over time.

Finsum: Now might be an important time to diversify to the UK with elections and interest rate volatility shocking U.S. and Asian markets.