"Exchange-traded funds are the go-to for conservative investors who have a long timeframe. The yield you get today is very generous compared to just five years ago. Yet, it may not be the wisest idea to have your portfolio concentrated entirely in ETFs that yield in the low single digits. Having some higher-yielding ETFs can give you extra income with negligible added risk if you hold them for the long run."
"High-yield dividend ETFs have exploded in popularity precisely because they solve two problems at once . They deliver the regular cash flow that retirees and near-retirees crave, while also spreading the single-stock risk that once haunted anyone who stretched for yield. The best of the group combine seasoned management, rock-bottom fees, and strict quality screens, so the payout is not just high but durable."
"iShares International Select Dividend ETF (BATS:IDV ) tracks the performance of 100 high dividend-paying companies across Europe, the Pacific, Asia, and Canada (EPAC region). It gives larger weightings to companies with higher dividends. IDV's recent performance could be the start of a broader trend that may let it recoup years of underperformance vs. U.S.-listed dividend ETFs. The dollar is weakening, and international companies, specifically European ones, are doing surprisingly well."
Exchange-traded funds suit conservative investors with long timeframes and currently offer higher yields than five years ago. Concentrating a portfolio solely in low-single-digit-yield ETFs can limit income growth. Including higher-yielding ETFs can significantly increase cash flow with negligible added long-term risk due to diversification benefits. High-yield dividend ETFs provide regular cash flow for retirees while spreading single-stock risk and combining experienced management, low fees, and strict quality screens to support durable payouts. iShares International Select Dividend ETF (IDV) tracks 100 high-dividend companies across the EPAC region, weights higher-yielding firms, and may benefit from a weakening dollar and strong European performance.
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