7 Monthly Dividend Funds and How to Find the Perfect ETF

TL;DR

Discover the top monthly dividend ETFs and learn how to use an ETF screener to narrow down your options.

Transcript

getting paid every month plus the stress-free strategy of an etf what could be better there are more than 800 monthly dividend funds with more than 600 of those underperforming the market how can you possibly find the perfect fit for your portfolio in this video i'll show you a new etf screener for monthly dividend funds that will narrow your list ... Read More

Key Insights

• 💄 Dividends account for nearly half of the total return on stocks, making monthly dividend funds an attractive option for investors.
• 👋 Using an ETF screener, such as the one on Stock Card, can help investors narrow down their choices and find the best monthly dividend ETFs for their portfolios.
• 😘 Passive ETFs with low expense ratios tend to be favored for their simplicity and cost-effectiveness.
• 📼 The size of a fund's assets can indicate its stability, with funds over $50 million being more likely to stay operational.
• 👣 Long-term track records provide insight into a fund's performance and its ability to generate consistent returns over multiple market cycles.
• ↩️ A diversified portfolio that includes a mix of stock funds, bond funds, real estate funds, and hybrid funds can provide a balanced approach to generate returns while managing risk.
• 💐 Some top monthly dividend ETFs include Invesco S&P 500 High Dividend Low Volatility ETF (SPHD), SPDR Bloomberg Barclays Convertible Securities ETF (CWB), Global X Super Dividend ETF (SDIV), iShares Morningstar Multi-Asset Income ETF (IYLD), VanEck Vectors Fallen Angel High Yield Bond ETF (ANGL), Global X Super Income Preferred ETF (SPFF), and iShares Preferred and Income Securities ETF (PFF).
• ↩️ Dividend yield may not be the sole determinant of an ETF's attractiveness, as total return potential and a mix of yield and price return should also be considered.

Questions & Answers

Q: How many monthly dividend ETFs are available, and why is it important to narrow down the options?

There are 866 ETFs paying out monthly dividends, but most of them underperform the market. Narrowing down the options is crucial to find the best funds that meet your investment goals and reduce risk.

Q: Why filter for passive ETFs with low expense ratios?

Passive ETFs tend to have lower expense ratios, reducing the costs associated with investing. While actively managed funds might offer better returns, the focus here is on low-cost funds that align with the simplicity and stress-free approach of ETF investing.

Q: Why filter for ETFs with assets over $50 million?

Investing in smaller funds can be risky as they may shut down after a few years, potentially resulting in capital gains tax and the need to find new investment options. Funds with a minimum of $50 million in assets are generally considered more stable and profitable for investors.

Q: Why is it important to consider a fund's track record when selecting ETFs?

A fund's track record reflects its performance and stability over time. By choosing ETFs with at least five years of history, investors can have more confidence in the fund's ability to deliver consistent returns and weather market fluctuations.

Summary & Key Takeaways

• There are over 800 monthly dividend funds available, but most underperform the market. Finding the right fit for your portfolio can be challenging.

• This video introduces a new ETF screener on Stock Card that helps identify the best monthly dividend ETFs.

• By applying specific filters, such as passive ETFs, funds with assets over $50 million, at least five years of history, and a 3-10% dividend yield, investors can narrow down their options to make informed decisions.