Unlocking Financial Freedom: 2 ETFs to Boost Your Passive Income
Achieving financial independence is a dream shared by many, and it all starts with generating a steady stream of passive income. By investing in the right assets, individuals can enjoy the freedom to spend their time and money as they please. With this goal in mind, let’s explore two exchange-traded funds (ETFs) that can help investors supercharge their passive income.
First, we have the Invesco S&P 500 High Dividend Low Volatility ETF (NYSEMKT: SPHD). This fund stands out for its unique strategy, which combines high-dividend stocks from the S&P 500 with low volatility. The result is a solid dividend yield of 3.5% paired with a diverse portfolio of blue-chip stocks. The fund’s holdings span multiple sectors, with utilities, consumer staples, and financials making up the largest portions.
Some of the fund’s top holdings include Verizon, Crown Castle, Altria Group, and AT&T. With a lifetime performance of 215% and a compound annual growth rate (CAGR) of 10.1%, this fund has proven itself to be a reliable performer. Its expense ratio of 0.30% is also relatively low, making it an attractive option for cost-conscious investors.
Next, we have the Vanguard International High Dividend Yield ETF (NASDAQ: VYMI), which takes a different approach by focusing on international stocks. This fund’s diverse portfolio spans 49% of Europe, 38% of Asia, and 11% of North, Central, and South America. The largest industries represented are finance, energy, and consumer staples.
Some of the fund’s top holdings include Nestle, Novartis, Roche Holding, and Shell. With a current dividend yield of 4.4% and an expense ratio of 0.22%, this fund is an excellent choice for income-seeking investors. Its five-year performance history is also impressive, with a total return of 55% and a CAGR of 9.2%.
Both of these ETFs offer unique benefits, but they share a common goal: to provide investors with a steady stream of passive income. By combining solid dividend yields with reasonable fees, these funds can help investors achieve financial freedom. Whether you’re looking to invest in the US equity market or explore international opportunities, either of these ETFs could be a wise addition to your portfolio.
Leave a Reply