Published on 28 Jul 2022 on InvestorPlace via Yahoo Finance
Dividend exchange-traded funds (or ETFs) offer investors the opportunity to have a passive income stream. They are also an easy way to diversify your portfolio without having to do the work of researching individual stocks.
Dividend ETFs are one of the most popular ways to invest in dividend stocks. They allow you to invest in a range of companies and have a high liquidity option, giving many investors an income that is passive, sustainable and doesn’t need active management on their end.
When analyzing ETFs, keep an eye on the expense ratio. The expense ratio of a stock or asset fund is the total percentage of fund assets used for administrative, management, advertising and all other expenses. An expense ratio of 1% means that each year 1% of the fund’s total assets will be used for this purpose.