The 5 Best ETFs for Bargain Hunters

If you're looking for a low expense ratio, look no further

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Vanguard High Dividend Yield ETF (VYM)

Vanguard The 5 Best ETFs for Bargain HuntersExpense Ratio: 0.10%

Of course, if you really want yield, this next fund’s got you covered. The SEC yield on the Vanguard High Dividend Yield ETF (VYM) is 3% — 38 basis points higher than the Schwab U.S. Dividend Equity ETF (SCHD).

Countless investors already think this Vanguard fund is one of the best ETFs, as VYM has $7.22 billion in total net assets. It tracks the FTSE High Dividend Yield Index, looking for stocks that traditionally generate above-average dividend yields.

The top stocks in the fund are familiar names: Exxon (XOM), Microsoft (MSFT) and General Electric (GE). But the top 10 holdings account for just 35% of the portfolio — lower than most large-cap funds meaning it actually gives the remaining stocks some decent exposure.

All in all, the VYM is one of the best ETFs because gives your your dividend fix with lots of blue chips and a low expense ratio.


Article printed from InvestorPlace Media, http://investorplace.com/2014/01/best-etfs-expense-ratio/.

©2014 InvestorPlace Media, LLC

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