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3 High-Yield Dividend ETFs to Buy to Generate Passive Income

The article from MSN Money discusses three high-yield dividend ETFs that investors can consider for generating passive income. These ETFs are:

Vanguard High Dividend Yield ETF (VYM) - This ETF focuses on large-cap value stocks that offer high dividend yields. It has an expense ratio of 0.06% and provides a yield of about 3.1%. It's designed for investors looking for stability and income from well-established companies.

SPDR S&P Dividend ETF (SDY) - This fund tracks the S&P High Yield Dividend Aristocrats Index, which includes companies that have consistently increased dividends for at least 20 consecutive years. It has an expense ratio of 0.35% and offers a yield around 2.6%. It's suitable for those interested in companies with a strong history of dividend growth.

Global X SuperDividend ETF (SDIV) - Known for its very high yield, this ETF targets 100 of the highest dividend-yielding equity securities globally, with a yield around 11.5% but comes with a higher expense ratio of 0.58%. It's more volatile due to its focus on high yield, which often includes riskier assets.

The article emphasizes the importance of considering the expense ratios, the stability of the dividends, and the overall risk profile when choosing ETFs for passive income, highlighting that while high yields are attractive, they often come with increased risk.

Read the Full MSN Article at:
[ https://www.msn.com/en-us/money/investment/3-high-yield-dividend-etfs-to-buy-to-generate-passive-income/ar-AA1xEcKE ]