The Vanguard Utilities Index Fund ETF Shares ( NYSEARCA:VPU) generates its 2.73% dividend yield by holding a diversified portfolio of 67 utility companies across the electric, gas, and water sectors. Investors receive quarterly distributions funded by the dividends these underlying holdings pay out. VPU manages $9.8 billion in assets while charging just 0.09% in annual fees, making it one of the most cost-efficient ways to access utility sector income.
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.