Why You Should Consider Vanguard Real Estate ETF for High Dividend Returns
Investing in Vanguard Real Estate ETF
This out-of-favor ETF is an opportunity to invest in an unloved sector known for big dividend payments. If you are looking for an exchange-traded fund (ETF) that will provide you with dividend income, you can go down one of two broad paths: You can buy an ETF focused on dividends, or you can buy an ETF that focuses on a sector that is focused on dividends.
A Quick Look at Vanguard Real Estate ETF
- Vanguard Real Estate ETF tracks the real estate investment trust sector broadly with an expense ratio of just 0.12%.
- It offers a generous dividend yield of 4.3%, outperforming the S&P 500 index yield.
Real estate investment trusts like VNQ pass income on to investors tax-efficiently. Vanguard Real Estate ETF focuses on providing investors income with relatively high yield.
Why Buy a REIT Index Today?
- Vanguard Real Estate ETF provides exposure to a diversified portfolio of REITs in a sector facing headwinds from rising interest rates.
- Investors can capitalize on the current state of flux in the REIT sector by taking a contrarian approach.
Should You Invest $1,000 in Vanguard Real Estate ETF Right Now?
Before investing, evaluate your risk tolerance and long-term outlook on the REIT sector. Consider the potential for high dividend returns amidst market uncertainty.
Disclaimer: The author may have no position in the mentioned stocks. Past performance is not indicative of future results.This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.