Five passive funds

Here are five passive funds (ETFs) known for offering high dividend yields—suitable for a hands‑off, income‑focused portfolio:

Vanguard High Dividend Yield ETF (VYM)
- Tracks FTSE High Dividend Yield Index
- Current yield ~2.8–3.1%, expense ratio ≈0.06%
- Large, stable holdings in financials & energy

Vanguard High Dividend Yield Indx ETF (VYM)

iShares Core High Dividend ETF (HDV)
- Focuses on U.S. high‑income large caps with strong fundamentals
- Yield around 3.5%, low fee

iShares Preferred & Income Securities ETF (PFF)
- Invests in preferred stocks and hybrid securities
- Yield close to 6%, low growth, stable income
SPDR Portfolio S&P 500 High Dividend ETF (SPYD)
- Equally weighted picks from the top‑yielding S&P 500 stocks
- Dividend yield around 4–4.9%, low cost
Global X SuperDividend ETF (SDIV)
- Invests in 100 of the highest‑yielding global stocks
- Yield ≈11–12%, higher risk & fees (≈0.58%)

ETF	Yield	Focus	Notes
VYM	~2.8–3.1%	U.S. high-yield stocks	Broad, low-fee, stable income
HDV	~3–3.5%	Quality U.S. large caps	Focus on sustainable dividends
PFF	~6%	Preferred stocks	Less volatility, income-focused
SPYD	~4–4.9%	S&P 500 high-yield stocks	Equal weight gives yield edge
SDIV	~11–12%	Global high-yielders	Highest yield, higher risk & cost

Risk vs reward: Higher yields (like SDIV) often come with elevated volatility and fees.
Tax treatment: Preferred stock distributions (PFF) may be taxed differently than ordinary dividends—check UK regulations.
Diversification: Blending U.S.-focused funds (VYM, HDV, PFF, SPYD) with a global fund (SDIV) can balance yield and geographic exposure.
Total return vs yield: Don’t ignore capital appreciation—some funds offer moderate yield with stronger growth (VYM, HDV).

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The Snowball owns SDIP currently in profit £496.00 including dividends received, although this could disappear like snow on a summer’s day.

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