Most exchange-traded funds (ETFs) are passively managed and tied to an index of some sort. The big indexes are easy to understand, like the S&P 500 index. However, things get more complicated when you focus on a particular type of investing, like dividends.
There are different ways to slice and dice dividend stocks, so you need to pay close attention to the details if you are buying an ETF as a dividend lover. That said, two ETFs you’ll want to get to know are the Vanguard Dividend Appreciation ETF (VIG -0.06%) and SPDR Portfolio S&P 500 High Dividend ETF (SPYD 0.08%). Here’s why.
For the dividend growth investor
Although many investors focus on dividends for current income, that doesn’t mean they can’t be used to identify growth opportunities. Basically, companies that are able to increase their dividends at a rapid clip are likely to be attractive from a growth perspective, too….
