Retirees Still Choose This 500 Stock ETF Despite A Seemingly Paltry 1.21% Yield

"Rather than weighting companies by market capitalization, it weights them by earnings. Bigger earners get bigger allocations, tilting the portfolio toward profit-generating businesses rather than simply the most valuable ones."

"The quarterly distribution history shows a consistent, if unspectacular, income track record. 2025 dividends ranged from $0.195 in Q1 to $0.245 in Q4, and the fund has maintained a quarterly payment schedule since its inception in February 2007, covering multiple recessions and market dislocations without skipping a payment."

"The earnings-weighted methodology provides structural income durability. Companies that earn more get more weight, naturally filtering toward businesses generating real cash. The 16% annual portfolio turnover keeps transaction costs low and tax drag minimal, both of which matter to retirees drawing income from a taxable account."

WisdomTree U.S. LargeCap Fund (EPS) offers retirees an alternative to traditional S&P 500 trackers by weighting companies based on earnings rather than market capitalization. This earnings-weighted approach tilts the portfolio toward profit-generating businesses. The fund generates income through dividends from over 500 large-cap U.S. companies across all major sectors, providing diversification that protects against individual dividend cuts. With a 1.21% dividend yield and quarterly distributions ranging from $0.195 to $0.245, the fund maintains a consistent payment history spanning multiple recessions since its 2007 inception. The earnings-weighted methodology naturally filters toward cash-generating businesses, while low portfolio turnover minimizes transaction costs and tax drag for taxable accounts. Rising corporate profits support income durability.

Read at 24/7 Wall St.