If you want exposure to the S&P 500 but prefer companies trading at reasonable valuations with steady cash flows, SPDR Portfolio S&P 500 Value ETF (NYSEARCA:SPYV) gives you exactly that. This fund filters the S&P 500 for value characteristics like lower price ratios and stronger dividend yields, creating a portfolio that tilts toward financial stability over growth speculation. A Core Position for Income and Stability SPYV works best as a foundational holding for investors who want large cap exposure without paying premium multiples.
The SPDR Portfolio S&P 1500 Composite Stock Market ETF ( NYSEARCA:SPTM) generates income by collecting dividends from its holdings and passing them through to investors. With 1,500 holdings spanning the entire U.S. market, SPTM offers broad exposure at an ultra-low 0.03% expense ratio. The fund yields 1.1%, modest compared to the 10-year Treasury at 4.16% - a dynamic we explored in today's Daily Profit newsletter - but the story is capital appreciation combined with steady income rather than yield chasing.
The Vanguard Utilities Index Fund ETF Shares ( NYSEARCA:VPU) generates its 2.73% dividend yield by holding a diversified portfolio of 67 utility companies across the electric, gas, and water sectors. Investors receive quarterly distributions funded by the dividends these underlying holdings pay out. VPU manages $9.8 billion in assets while charging just 0.09% in annual fees, making it one of the most cost-efficient ways to access utility sector income.
That said, the Schwab U.S. Broad Market ETF ( SCHB) is about as close of an approximation to what I just described above as they come. This fund tracks the total return of the entire Dow Jones U.S. Broad Stock Market Index, which essentially includes more than 2,400 stocks across virtually all sectors. In other words, investors in SCHB gain exposure to the entire universe of investable equities in the U.S. market. Talk about diversification, folks.
As you shift gears into retirement, you're going to want passive income to cover necessities and other expenses. One way to achieve this is by investing in dividend ETFs. Dividends are payments companies make to their shareholders out of their profits. But rather than picking dividend-paying stocks yourself, dividend ETFs are professionally managed funds that invest in sometimes hundreds of dividend paying stocks. And two dividend ETFs have long stood out for their dividend muscle. They are brought to you by Schwab, one of the biggest brokerages in the country. So let's take a closer look at these dividend powerhouses.
During these uncertain times, with further fallout from tariffs still threatening to rear its head, dividend income is more valuable than ever, and one particular dividend ETF , Vanguard's High Dividend Yield Index Fund ETF Shares (VYM) fund, moves to the front of the line. As the name suggests, this ETF targets large-cap domestic stocks that are on the radar to pay higher-than-average dividend yields based on forward dividend yield.