2 Vanguard ETFs To Load Up On in October

"October doesn't have to be a scary month if you're properly positioned with exchange traded funds (ETFs). Vanguard's variety of ETFs could potentially make this a profitable month if you choose the right funds for your portfolio. Two Vanguard ETFs in particular stand out as strong buys for October. They're quite different, though they have common features: low expenses and plenty of established blue-chip stocks in their holdings. Combining these two Vanguard funds could add some serious growth power to your investment account. So, let's unpack a pair of October Vanguard ETF picks for your consideration."

"In that vein, Vanguard brings you a popular fund at a low cost. It's the Vanguard High Dividend Yield ETF ( NYSEARCA:VYM), which tracks a huge basket of stocks offering attractive dividend yields. How huge is the basket? Believe it or not, the Vanguard High Dividend Yield ETF's holdings list includes 579 stocks. You'll surely recognize some of the stocks on the list, such as Exxon Mobil ( NYSE:XOM), Johnson & Johnson ( NYSE:JNJ), JPMorgan Chase ( NYSE:JPM), and Walmart ( NYSE:WMT)."

"You might expect to pay substantial fees to the fund's management for such broad diversification. Yet, the Vanguard High Dividend Yield ETF only deducts an annualized expense ratio of 0.06%. This translates to operating fees of just $0.06 per year for every $100 invested in the fund."

Proper ETF positioning can make October a profitable month. Vanguard offers low-cost ETFs that combine broad diversification with blue-chip holdings. One highlighted fund is the Vanguard High Dividend Yield ETF (VYM), which holds 579 stocks including Exxon Mobil, Johnson & Johnson, JPMorgan Chase, and Walmart. VYM charges an annualized expense ratio of 0.06%, equivalent to $0.06 per $100 invested. The ETF currently features an annual yield of 2.45%. A September distribution of $0.84 per share has already passed, but purchasing shares in October positions investors for the next dividend payout.

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