The Best High-Yield Dividend ETF to Invest $1,000 in Right Now
The Schwab US Dividend Equity ETF (NYSEMKT: SCHD) is a highly popular exchange traded fund (ETF) that has attracted around $63 billion in assets. One reason for that is the yield, which at 3.4% is nearly three times larger than the 1.2% you could collect from an S 500 index ETF. But there's much more to the story than just yield that makes the Schwab US Dividend Equity ETF a great place to invest $1,000 or more today.
The Schwab US Dividend Equity ETF is a passive exchange-traded fund, in that it tracks an index (the Dow Jones U.S. Dividend 100 Index) that uses a set screening approach to create a portfolio of 100 stocks. Humans, and their emotions, do not get involved (beyond having created the screens that are used to populate the index). The stock screening approach of the index, then, is the most important thing for investors to understand.
Image source: Getty Images.
Source Fool.com
