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5 Best Dividend Funds for the Fall

Get diverse and get income via these ETFs and mutual funds

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Vanguard Dividend Appreciation ETF

Vanguard mutual funds 401(k)Dividend Yield: 2.1%

If all of these strategies sound risky, then your best bet is to just index it and forget it — not just in the fall, but into 2014 and beyond. The best investment to do that is the Vanguard Dividend Appreciation ETF (VIG).

This exchange-traded product is one of the 13 largest ETFs offered on Wall Street — at least measured by assets, with over $17 billion under management. The yield is 2.1%.

But though the scale is big asset-wise, the expense is very low when it comes to fees. VIG charges just 0.1% in expenses, or a measly $10 annually for every $10,000 invested.

This ETF is benchmarked to the Nasdaq U.S. Dividend Achievers Select Index, so it’s passively managed based on that set list of stocks. The sector breakdown is weighted toward consumer goods, with more than 23% allocation right now, and industrials coming in a close second at 22% of the ETF’s portfolio.

Specifically, top holdings are Procter & Gamble (PG), PepsiCo (PEP), Walmart (WMT) and Chevron (CVX). The ETF launched in 2005, and its annual returns since inception are about 6.7% annually.

If you’re simply looking for a cheap and low-risk income fund that is easy to access, then the VIG is one of the biggest and best products out there.

Jeff Reeves is the editor of and the author of The Frugal Investor’s Guide to Finding Great Stocks. As of this writing, he did not hold a position in any of the aforementioned securities. Write him at or follow him on Twitter via @JeffReevesIP

Article printed from InvestorPlace Media,

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