Vanguard’s offerings don’t usually attract much attention from income investors. But they should – and I’m going to analyze five of the firm’s highest yield (and low cost) offerings shortly.
Three of them are compelling portfolio conveniences, while two have lagged their competitors in disappointing un-Vanguard-like manners.
While Vanguard provides a few actively managed funds, for the most part, it sticks to basic index funds and straightforward smart-beta funds in both the equity and bond arenas.
The firm doesn’t delve much into the kinds of riskier strategies that tend to result in higher yields, nor does it deal in exchange-traded notes or leveraged funds that would allow it to gin up extra income.
In fact, of Vanguard’s 70 ETFs, a mere five boast yields of more than 4% currently.
But investors would be wise not to sleep on this small list of Vanguard ETFs, as their dirt-cheap costs make each of them a candidate for important satellite income holdings for just about anyone.