Most investors focus on dividend yield, but are you paying attention to TOTAL RETURN? I found a list ranking ETFs by total return, and some of these numbers are worth discussing. ๐ Here are 8 ETFs to know about: ๐ 1. SCHG โ Schwab U.S. Large-Cap Growth ETF ๐ฐ Yield: 0.40% ๐ Total Return: 1,218% ๐ธ Expense Ratio: 0.04% A growth-focused ETF for investors looking for long-term capital appreciation rather than high dividend income. ๐ผ 2. PTY โ PIMCO Corporate & Income Opportunity Fund ๐ฐ Yield: 12.11% ๐ Total Return: 954% ๐ธ Expense Ratio: 1.27% A high-income closed-end fund investing primarily in corporate debt and other income-producing securities. Its high yield comes with additional risks and higher fees. ๐ 3. VOO โ Vanguard S&P 500 ETF ๐ฐ Yield: 1.00% ๐ Total Return: 840% ๐ธ Expense Ratio: 0.03% Provides exposure to 500 leading U.S. companies. A popular option for investors seeking broad U.S. stock market exposure. ๐ 4. VIG โ Vanguard Dividend Appreciation ETF ๐ฐ Yield: 1.40% ๐ Total Return: 608% ๐ธ Expense Ratio: 0.04% Focuses on companies with a history of growing their dividends. Ideal for investors interested in dividend growth rather than simply chasing the highest yield. ๐ต 5. DVY โ iShares Select Dividend ETF ๐ฐ Yield: 3.20% ๐ Total Return: 587% ๐ธ Expense Ratio: 0.38% Focuses on dividend-paying U.S. stocks and offers a higher yield than many broad-market ETFs. ๐ฆ 6. SCHD โ Schwab U.S. Dividend Equity ETF ๐ฐ Yield: 3.00% ๐ Total Return: 531% ๐ธ Expense Ratio: 0.06% A popular dividend ETF that focuses on financially strong companies with a history of paying dividends. ๐ 7. SDY โ SPDR S&P Dividend ETF ๐ฐ Yield: 2.60% ๐ Total Return: 472% ๐ธ Expense Ratio: 0.35% Targets companies that have consistently increased their dividends for at least 20 consecutive years. ๐ฐ 8. VYM โ Vanguard High Dividend Yield ETF ๐ฐ Yield: 2.40% ๐ Total Return: 470% ๐ธ Expense Ratio: 0.04% Provides exposure to a broad selection of U.S. stocks with above-average dividend yields. ๐ง WHAT SHOULD YOU TAKE AWAY FROM THIS? Notice something interesting? SCHG has the highest total return on this list, but its dividend yield is only 0.40%. Meanwhile, PTY offers a 12.11% yield, but it comes with a much higher expense ratio and a different risk profile. This is why you shouldnโt judge an investment by its dividend yield alone. โ Want long-term growth? Consider researching growth-focused ETFs. โ Want growing dividends? Look into dividend-growth ETFs. โ Want higher current income? Research high-yield funds carefully. โ Want a combination? Understand how different ETFs complement one another. Remember, past performance doesnโt guarantee future results. ๐ฌ QUESTION: If you had to choose one, would you pick SCHG for growth, SCHD for dividends, or PTY for high income? Why? ๐ Save this post for your next portfolio review!
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3 Comments
Richard Verhaeghe
@ravonar ยท 12d
VGT/SCHD or SPMO/ VGT 50/50
Ed
@edsam ยท 12d
I look at yield and my recently invented anti-hater score = (return - yield) + (return over/under benchmark)
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