"Investing in some of the top monthly dividend paying ETFs can be an exhilarating exercise for some investors. Indeed, creating passive income streams one can live off of in retirement (or as a supplemental source of income for those still a ways from retirement) is a great thing. I'm of the belief that using a mix of equities and fixed income securities to do so is a solid strategy, and one that shouldn't be overlooked."
"Shares of this particular ETF are up nearly 80% over the course of the past five years, eclipsing the returns of SCHD (up around 50% over the same time frame) by a wide margin. And while this particular ETF pays a dividend yield of only 1.3% relative to SCHD's much more impressive 3.8% dividend yield, that yield variation isn't enough to offset the capital appreciation upside VSMV has seen in the past."
Monthly dividend ETFs offer a path to passive income using a mix of equities and fixed income. The universe of monthly dividend ETFs has expanded greatly, producing wide divergence in recent total returns. Two monthly dividend ETFs have outperformed the Schwab U.S. Dividend Equity ETF (SCHD) over the past five years. VictoryShares U.S. Multi-Factor Minimum Volatility ETF (VSMV) gained nearly 80% over five years versus SCHD's roughly 50%. VSMV yields about 1.3% compared with SCHD's 3.8%, but VSMV's capital appreciation offset the lower yield. Increased demand for lower-volatility equity access could sustain VSMV's relative outperformance.
Read at 24/7 Wall St.
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