Discover the top high-yield dividend ETFs for 2024, offering diversifi cation and income potential. Learn about key funds like VTI, VIG, VYM, SDY, and DVY, and find tips on selecting the best ETFs based on dividend history and yields. Make informed investment decisions and align your portfolio with your financial goals with expert advice.

Regularly reviewing and rebalancing your investment portfolio is vital, especially during uncertain economic periods when financial priorities may evolve. Exchange-Traded Funds (ETFs) are a favored option for investors aiming to access high-dividend stocks. Combining the advantages of mutual funds and individual equities, ETFs offer diversification and potential income streams.

Here are five prominent high-dividend ETFs to keep an eye on in 2024:

Vanguard Total Stock Market ETF (VTI)

This ETF mirrors the CRSP US Total Market Index, covering nearly all investable US stocks, including micro-cap to large-cap shares. As of March 2024, it yields about 2.20%, with a low expense ratio of 0.03%.

Vanguard Dividend Appreciation ETF (VIG)

VIG tracks the NASDAQ US Dividend Achievers Select Index, comprising approximately 182 stocks known for consistent dividend growth. Its expense ratio was 0.06% as of December 2023, with an SEC yield around 1.80%.

Vanguard High Dividend Yield ETF (VYM)

This fund follows the FTSE High Dividend Yield Index, holding roughly 404 high-yielding stocks as of late 2023. Its expense ratio is about 0.06%, offering an estimated SEC yield of 3.23%.

SPDR S&P Dividend ETF (SDY)

Rated five stars by Morningstar, SDY tracks the S&P High Yield Dividend Aristocrats Index, featuring over 100 companies with strong dividend histories. As of December 2023, its yield was about 2.5%, with an expense ratio of 0.35%.

iShares Select Dividend ETF (DVY)

Managed by BlackRock, DVY invests in around 100 companies with consistent dividend payments over five years. Its SEC yield is approximately 3.56%, with an expense ratio of 0.39%.

Investment Guidance:

ETFs are similar to mutual funds, offering diversified exposure to specific sectors or broad markets based on your investment goals. Prioritize funds that focus on firms with a history of increasing dividends. Always evaluate past performance, dividend track records, and yields before investing. You can calculate yield by dividing the recent dividend by the fund's NAV.

Consult a financial professional to ensure these options fit within your overall financial plan and risk appetite.