3 High-Yield Dividend ETFs to Buy With $2,000 and Hold Forever
These exchange-traded funds have a lot to offer income investors.
Overview
High-yield dividend exchange-traded funds (ETFs) are designed to be attractive to investors who want decent market returns, low volatility, and high cash flow. While these funds typically don't outperform the S&P 500 during bullish market phases, they offer more insulation from trouble during market corrections. For retail investors who have $2,000 to put to work now and are seeking passive income opportunities, buying these dividend ETFs would be a strong set-it-and-forget-it strategy.
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The Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) uses the Dow Jones U.S. Dividend 100 index as its benchmark and only has a 0.06% expense ratio. It has produced an annualized return of 8.9% over the past five years.
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Source
Originally published at www.fool.com.