What To Consider Before Buying A Dividend ETF

By: ETFdb
For those outside of 401(k) and other employer-sponsored retirement accounts, exchange-traded funds are rapidly taking the place of mutual funds as the product of choice for investors searching for diversification at a low price. Not only can ETFs provide a diversified vehicle for capital appreciation, they can also provide healthy and impressive dividends for the income investor. What should you know about these dividend ETFs and how do you add these products to your portfolio? [see 101 High Yield ETFs For Every Dividend Investor] What Is a Dividend ETF? A lot of Wall Street lingo is tough to understand for those not working at a trading desk, but on the surface, a dividend ETF is easy to understand. Just as stocks may or may not pay a dividend, ETFs are the same depending on the index they track. Take for example, the SPDR S&P Dividend ETF (SDY), which seeks to replicate the [...] Click here to read the original article on ETFdb.com. Related Posts: ETFs To Play Along With Soros, Paulson, and Fournier Daily ETF Roundup: Congress Spooks Markets Ahead of Holidays Daily ETF Roundup: Cliff Talks Overshadow Positive Economic Data The Most Tradable Stock In Each Sector SPDR ETF The 5 Most Important Chart Patterns For ETF Traders
For those outside of 401(k) and other employer-sponsored retirement accounts, exchange-traded funds are rapidly taking the place of mutual funds as the product of choice for investors searching for diversification at a low price. Not only can ETFs provide a diversified vehicle for capital appreciation, they can also provide healthy and impressive dividends for the income investor. What should you know about these dividend ETFs and how do you add these products to your portfolio? [see 101 High Yield ETFs For Every Dividend Investor] What Is a Dividend ETF? A lot of Wall Street lingo is tough to understand for those not working at a trading desk, but on the surface, a dividend ETF is easy to understand. Just as stocks may or may not pay a dividend, ETFs are the same depending on the index they track. Take for example, the SPDR S&P Dividend ETF (SDY), which seeks to replicate the [...]

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