"Considering the state of the economy and the rising household expenses, the idea of receiving a monthly dividend income is attractive. If you're constantly worried about the ebbs and flows of the market, investing in an exchange-traded fund can be a smart choice. You can benefit from capital appreciation while enjoying steady passive income, at low risk. Stocks will pay you a quarterly dividend, while bonds will pay every six months, but ETFs can generate monthly income to cover your expenses or to reinvest."
"Invesco S&P 500 High Dividend Low Volatility was launched in 2012. It has a simple method where in large and financially stable companies are chosen from the S&P 500, and it then narrows it down to companies with the highest yield. This leads to a heavy concentration in utilities and REITs. The stocks in the fund carry equal weight, so each investment has the same impact on performance. Since there's no extra weightage on any stock, it reduces the risk and volatility."
Monthly dividend ETFs provide regular income and budgeting flexibility while offering potential capital appreciation with lower individual-stock risk. ETFs can deliver monthly payments, unlike typical quarterly stock dividends or semiannual bond payments. Invesco S&P 500 High Dividend Low Volatility ETF (SPHD) launched in 2012 and selects large, financially stable S&P 500 companies, then narrows to the highest-yielding names, producing heavy utility and REIT exposure. Holdings are equal-weighted to reduce single-stock concentration and volatility. SPHD has added about 2.77% year-to-date, 1.66% over 12 months, reports an NAV near $49.70, and offers higher yield at lower cost than SCHD.
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