#low-expense-ratio

#low-expense-ratio

As you shift gears into retirement, you're going to want passive income to cover necessities and other expenses. One way to achieve this is by investing in dividend ETFs. Dividends are payments companies make to their shareholders out of their profits. But rather than picking dividend-paying stocks yourself, dividend ETFs are professionally managed funds that invest in sometimes hundreds of dividend paying stocks. And two dividend ETFs have long stood out for their dividend muscle. They are brought to you by Schwab, one of the biggest brokerages in the country. So let's take a closer look at these dividend powerhouses.

During these uncertain times, with further fallout from tariffs still threatening to rear its head, dividend income is more valuable than ever, and one particular dividend ETF , Vanguard's High Dividend Yield Index Fund ETF Shares (VYM) fund, moves to the front of the line. As the name suggests, this ETF targets large-cap domestic stocks that are on the radar to pay higher-than-average dividend yields based on forward dividend yield.