Dividend investing is a simple way to generate regular income. Vanguard ETFs offer a low-cost way to gain diversified income exposure with lower risk. Using TipRanks’ Best Vanguard ETFs tool, three income-focused options stand out: Vanguard Emerging Markets Government Bond ETF (VWOB), Vanguard Core Plus Bond ETF (VPLS), and Vanguard International High Dividend Yield ETF (VYMI).
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Let’s take a look at these ETFs in detail.
Vanguard Emerging Markets Government Bond ETF (VWOB)
The Vanguard Emerging Markets Government Bond ETF (VWOB) invests in government bonds from emerging market countries such as Brazil, Mexico, and Indonesia. The ETF gives investors diversified exposure to international bonds and offers the potential for higher income compared to many U.S. bond funds. It also spreads risk by investing across different countries and bond maturities.
VWOB pays a monthly dividend of $0.318 per share, reflecting a 5.9% yield.
Vanguard Core Plus Bond ETF (VPLS)
The Vanguard Core Plus Bond ETF (VPLS) is a diversified bond ETF that invests in a mix of government, corporate, and other higher-yield bonds. It focuses on intermediate-term bonds, aiming to balance steady income with moderate risk. The fund is designed for investors looking for stable returns and diversified fixed-income exposure.
VPLS pays a monthly dividend of $0.284 per share, reflecting a 4.79% yield.
Vanguard International High Dividend Yield ETF (VYMI)
The Vanguard International High Dividend Yield ETF (VYMI) focuses on dividend-paying stocks in foreign developed and emerging markets, offering investors global income opportunities. It tracks the FTSE All-World ex US High Dividend Yield Index, offering a way to earn a steady income while diversifying globally.
VYMI pays a dividend of $0.708 per share, reflecting a 3.43% yield.
Moving to holdings, VYMI has 1,582 stocks with total assets worth $19.29 billion. Its top 3 holdings are Novartis (NVS), HSBC Holdings (HSBC), and Roche Holding (RHHBY).