Dividend ETFs: Are They Worth the Investment in 2025?

Certain dividend ETFs stand out based on their performance, yield, and portfolio composition:

Vanguard High Dividend Yield Index ETF (VYM): With assets under management of $86.6 billion and an expense ratio of 0.06%, VYM focuses on high-dividend-yielding U.S. companies. The fund offers a dividend yield of approximately 1.7%.

Schwab U.S. Dividend Equity ETF (SCHD): SCHD aims to track the total return of the Dow Jones U.S. Dividend 100 Index, providing exposure to high-dividend-yielding U.S. stocks. The fund has an expense ratio of 0.06% and a dividend yield of around 3.5%.

iShares Select Dividend ETF (DVY): DVY invests in 100 U.S. stocks with high dividend yields, primarily focusing on mid- and large-cap companies. The fund offers a dividend yield of approximately 3.4% and has an expense ratio of 0.39%.

Invesco S&P 500 High Dividend Low Volatility ETF (SPHD): This ETF targets 50 securities from the S&P 500 Index that have historically provided high dividend yields and exhibited low volatility. SPHD has an expense ratio of 0.30% and a dividend yield of about 4.8%.

iShares Core High Dividend ETF (HDV): HDV focuses on high-dividend-paying U.S. companies with a consistent history of dividends. The fund offers a dividend yield of approximately 3.5% and has an expense ratio of 0.08%.