What are the benefits of investing in a dividend aristocrat ETF?

Choosing individual companies requires time and effort, not to mention the commission paid to the brokerage every time an order is filled. This bring to the second benefit of using dividend aristocrats ETFs: the saving of the time, effort, and commission of picking stocks yourself. And then there’s the peace of mind offered by owning dividend ETFs.

What are the top dividend aristocrat ETFs?

Vanguard Dividend Appreciation ETF is the largest and the most popular ETF in the dividend space, with AUM of $61.8 billion and an average daily volume of 1.3 million shares. The fund follows the S&P U.S. Dividend Growers Index, which is composed of large-cap stocks that have a record of raising dividends every year.

What is the return rate of dividend aristocrat ETFs?

Investing in this fund, as well as any investment strategy centered around the Dividend Aristocrats, means betting on consistent returns over several years’ time. This ETF gives exactly that, having maintained a total 5-year return of 57.69%. This ETF tracks the performance of the S&P High Yield Dividend Aristocrats Index.