"The nice thing about investing in ETFs, or exchange-traded funds, is that they make the process of building and maintaining a portfolio pretty simple. It's important to maintain a diverse portfolio to protect yourself from broad market downturns, as well as sector-specific meltdowns. If you put 80% of your assets into tech stocks, for example, and that sector crashes, you could be looking at serious losses."
"Vanguard has long been hailed as a pioneer in the ETF space, and its Vanguard S&P 500 ETF (VOO) tends to be a favorite among everyday investors. But if you're looking for more income in your portfolio, there's another Vanguard ETF you may want to buy - the Vanguard High Dividend Yield ETF (VYM). The Vanguard High Dividend Yield ETF tracks companies that have a long history of not just paying dividends, but growing their dividends."
ETFs simplify building and maintaining an investment portfolio while enabling diversification against market and sector-specific downturns. Concentrating assets in a single sector can produce severe losses if that sector crashes. ETFs inherently hold diverse holdings, but strategies vary among funds. Some ETFs prioritize steady income for investors through dividends. Vanguard High Dividend Yield ETF (VYM) focuses on companies with long histories of paying and growing dividends, maintains sector balance, and carries a low expense ratio. Schwab U.S. Dividend Equity ETF (SCHD) tracks the Dow Jones U.S. Dividend 100 Index and selects quality companies with at least ten years of consistent dividend payments screened for financial growth.
Read at 24/7 Wall St.
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