These 3 Dividend ETFs Can Double Your Money by 2030
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Building wealth through the stock market does not require finding the next explosive growth stock or timing volatile sectors. Sometimes the most powerful force in investing is simply the quiet mathematics of compounding combined with steady, rising income, and you can do that with the Fidelity High Dividend ETF (NYSEARCA:FDVV), Franklin Intl Low Volatility High Dividend Index ETF (BATS:LVHI), and Direxion Daily 20+ Year Treasury Bull 3X Shares (NYSEARCA:TMF).
Dividend ETFs are highly reliable vehicles that can perform remarkably well over the long run. They are still underrated because most of the gains actually come through venues you can’t see. If you compare a growth stock and a dividend ETF, it becomes clear that the growth stock has been winning for the past 20 years.
However, when you take dividend reinvestments and the compounding into account, you’ll quickly realize that the dividend ETF is the one snowballing into an avalanche. On the other hand, the growth stock is susceptible to a Dot-Com-esque collapse.
Thus, it is important to keep a large chunk of your portfolio in dividend ETFs. Here are three to consider.
Fidelity High Dividend ETF (FDVV)
The Fidelity High Dividend ETF is a passively managed fund that tracks the Fidelity High Dividend Index. It captures returns from large and mid-cap U.S. companies that pay growing dividends. The ETF combines solid performance and a reliable dividend yield of 2.73%. It is up 16% over the past year and has outperformed most mainstream dividend ETFs, that too with an expense ratio of just 0.15%.
FDVV’s performance is thanks to the fund putting a quarter of its holdings in tech, with the rest in a blend of more stable industries. Tech stocks constitute the top holdings, followed by true dividend payers. These top holdings don’t have the best dividend yields, but they do drive upside and also have comparably higher dividend growth.
I expect FDVV to keep doing well. It has nearly doubled since the start of 2020. Doubling in the next four years is possible if you keep reinvesting the dividends and the broader market continues cooperating.
Franklin Intl Low Volatility High Dividend Index ETF (LVHI)
The Franklin International Low Volatility High Dividend Index ETF has gained nearly 30% in the past year. It invests in stocks outside the U.S., and the strategy keeps volatility in check. LVHI’s strong performance is thanks to foreign stocks doing well due to the dollar’s slide. Moreover, higher-yielding assets are performing well worldwide due to central banks cutting interest rates. Morgan Stanley expects the dollar to keep losing value this year, and I expect the same due to the incoming Fed chair supporting even lower interest rates.
LVHI gets you what no domestic ETF does. You get exceptionally strong performance plus a 4.46% yield. The ETF has historically been worse off, but the recent breakout can see it close the gap quickly. It has the legs to keep outperforming the broader market through 2030 as international stocks catch up.
LVHI’s expense ratio is more on the pricier end at 0.40%, but the yield makes it very much worth it. We’re looking at a solid 2026 performance if interest rates keep getting cut and the dollar continues falling, along with strong performance among international companies.
Direxion Daily 20+ Year Treasury Bull 3X Shares (TMF)
Direxion Daily 20+ Year Treasury Bull 3X Shares is not a traditional equity fund. This is a leveraged fund that targets 3x the daily performance of the ICE U.S. Treasury 20+ Year Bond Index. Plainly put, for every 1% the index moves in a given day, TMF targets a 3% move in the same direction.
I would play this ETF differently than the other two and sell it when it rises above $120. Leveraged ETFs are not buy-and-hold vehicles and will decay when you hold. However, TMF is well-positioned to deliver multibagger gains in the near to medium term due to rate cuts. Declining interest rates will push long-term Treasuries higher, and TMF will benefit disproportionately from it. Once Treasury yields finally start sliding, TMF could quickly double or triple from current prices. This should happen before 2030 if rate cuts come as expected.
In the meantime, you’re getting a 3.95% dividend yield. The expense ratio is 0.91%, which is expensive but negligible since this isn’t an ETF I’d hold for long.