THIS IS THE BEST DIVIDEND ETF TO INVEST IN

Okay, so we know that dividend stocks are an amazing investment asset that can grow your money and grow your income for life. We've taken a look at how dividend stocks, quality dividend stocks, can blow away the S&P 500. And we also did an analysis to see how quality dividend stocks, a model portfolio, would compare against three different dividend exchange trade-off funds. We looked at Vanguard's high dividend yield ETF, their dividend appreciation ETF, and the Noble Dividend Aristocrat's dividend ETF. And we found that the model portfolio fell short, or at least did not outperform every single one of the dividend ETFs. So naturally, I think a great follow-up video here would be, what are the best dividend exchange trade-off funds to own here in 2021? In this video, I promise to give you the most comprehensive look at the top dividend ETFs available here in 2021. Trust me, you're going to want to stick around all the way to the end of this video, guys. We're looking at 11 different dividend ETFs. We're going to look at the expense ratios. We're going to look at the different amount of holdings. We're going to make some assumptions with the dividend growth rate and the monthly price appreciation over the long term to model what can happen with a dividend ETF for a period of 10 years. I wonder which one of the dividend ETFs is going to come out ahead in this review. It's an all-out dividend war here on the Average Joe Investor channel. Let's go ahead and get started. Hey guys, before we get started, make sure to hit that subscribe button below the video to ensure you do not miss any future videos I post. Make sure to leave a comment below saying you subscribed and I promise to respond personally to your comment. 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We've got a lot of ground to cover here, so let's jump right into the content. 11 different dividend exchange-traded funds, with the idea being that if we don't want to pick individual quality dividend stocks, which I'm still a huge advocate for, I feel like I can beat the index. I can beat dividend ETFs. I'm going to show you that in a future video where I break down my individual portfolio long-term against these dividend ETFs, but for now, we're talking about if you want to just bypass the process and own dividend ETFs, we've got a lot of different options available. Which ones are the best fit for us? 11 different dividend ETFs here. Let's go ahead and look at the players here. Alright, some of these are going to look very familiar here because we covered them in a previous video, so I'm going to breeze through those pretty quickly here. First off, we've got the Vanguard High Dividend Yield ETF, VYM. We covered that in a previous video. As you can see here, this expense ratio for Vanguard's VYM is 0.06%. They have $32.85 billion in assets under management, 410 different holdings. It was created in 2006. Annual dividend paid out $2.91, and the dividend yield currently is 3.06%. We'll get into some of the other metrics here in just a second. Next up, again, we have the Vanguard Dividend Appreciation ETF, VIG. It's got also an expense ratio of 0.06%, $53.87 billion in assets under management. This might be, I think it is, the largest of the dividend ETFs. It's got 212 different holdings here. Date created is April of 2006, and it's got an annual dividend of $2.30, and a dividend yield of 1.61%. One of the things we talked about in the last video with respect to these two different dividend ETFs is they have very different goals and objectives. The dividend appreciation is all about dividend growth, but also owning real, I'll say, for lack of a better term, quality dividend stocks that are not necessarily about larger dividends, but also about between growth and dividends. You're going to see companies like Apple and Microsoft in this ETF, even though they have very low dividend yields, whereas with the Vanguard High Yield Dividend ETF, it's more focused on higher yielding dividend stocks. Next dividend ETF we're going to look at is the Schwab U.S. Dividend Equity ETF, ticker symbol SCHD. I got to be honest with you guys, I got a lot of blowback on the last video because people were saying, hey, what about Schwab's SCHD? Why didn't you look at that one? I get it. We're going to look at it here. We're going to see how this fund performs against the other ones. You can see here some of the top holdings for SCHD include Exxon, Texas Instruments, 3M, Altria, UPS, International Business Machines, quite a significant holding here in just the top 10 or 15 holdings, but again, from an asset allocation perspective, the holdings as you can see for SCHD, 100 different holdings, just the NASDAQ top 100 dividend holdings here. It's got an annual dividend of $2.03 and a dividend yield of 3.04%. Next up we have the iShares Core High Dividend ETF, HDV. We've got assets under management of $5.94 billion, Schwab had $17.83 billion. The holdings here for HDV are only 75 different dividend stocks. It's got an annual dividend of $3.57 and a dividend yield of 3.98%. You'll also notice here, I haven't mentioned it, but the compound annual growth rate is a factor in this model we're going to create. For Vanguard's High Yield Dividend ETF, it's 6.22%. By the way, these numbers all came from Seeking Alpha. The five-year compound annual growth rate for VIG is 8.16%. For Schwab, 12.09%, really high. For the iShares HDV, it's only 4.38%. Next one we're going to talk about here is the SPDR Portfolio S&P 500 High Dividend ETF. If we look at the holdings for this ETF, we'll see here companies like Seagate Technologies, Hanes Brands, Hewlett-Packard, Federal Realty Investment Trust, Simon Property Group, names that you're not quite as familiar with, to be completely honest. You'll see this fund here has an expense ratio of 0.07%. Assets under management, 2.59 billion, only 80 holdings in this ETF. It was created in 2015. It's got a five-year CAGR of 4.7%. Annual dividend, $1.63 per share, and a dividend yield of 4.55%. That is by far the highest dividend yield so far. Next up, we're taking a look at the SPDR S&P Dividend ETF. We've got Exxon, AT&T, Chevron, People's United, Federal Realty, IBM, National Retail Properties. Expense ratio for this fund is 0.35%, which is a lot higher than the other funds we've looked at so far, but assets under management, 17.12 billion, 114 different holdings. It's got a five-year compound annual growth rate of 5.66%. An annual dividend of $3.02, which leads to a dividend yield of 2.72%. Next up, we have the Invesco S&P 500 Quality ETF, SPHQ. We can see the top holdings here include Microsoft, Nvidia, Apple, Johnson & Johnson, Procter & Gamble, Visa, Abbott Laboratories, MasterCard, Merck, and Adobe. For this ETF, we can see the expense ratio, 0.15%, 2.47 billion in assets under management, 102 different holdings, and it's got a five-year compound annual growth rate of 4.37%. An annual dividend of $0.65, and that leads to a dividend yield of 1.48%. Next up here is another fund we've already talked about, and that is the ProShares S&P 500 Dividend Aristocrats ETF. This one, again, is the only one that focuses exclusively on the S&P 500 Dividend Aristocrats. The only stocks held in this ETF are ones that have been raising their dividend for You can see here it's actually a pretty balanced fund because that's an equally weighted fund, meaning that every single stock in this ETF is held equally. For Noble, it's got an expense ratio of 0.35%, assets under management, 7.2 billion, 67 different holdings in this ETF, and that's the fewest amount in all of the ones we're going to look at here. Compound annual growth rate, 11.37%. It's got an annual dividend of $1.71 a share, and the dividend yield, 2.1%. Next up, we have the WisdomTree US Quality Dividend Growth Fund, DGRW. So we're talking about growth companies, which means we're probably going to see companies like Apple and Microsoft. Let's go ahead and scroll down and take a look here. We've got, yep, Microsoft, Apple, Johnson & Johnson, Verizon. Then we've also got Procter & Gamble, Coca-Cola, Pfizer, Altria, Intel, Cisco, Merck & Company, etc. For DGRW, we've got an expense ratio of 0.28%. We've got 5.31 billion in assets under management, 300 different holdings, a compound annual growth rate of 9.16%. We've got an annual dividend of $1.03 a share, and a dividend yield of 1.88%. That's to be expected here when we're talking about dividend growth stocks as opposed to straight dividend paying stocks. All right, three more to cover here. Again, from WisdomTree, the WisdomTree US High Dividend Fund, DHS. So instead of growth orientation, we're talking about high dividend stocks. So if we come down here to current day holdings, we can see that as opposed to companies like Microsoft and Apple, we've got Altria, Philip Morris, AbbVie, AT&T, Verizon, Pfizer, Coca-Cola, Cisco, Broadcom, International Business Machines, 3M, Citigroup, etc., etc. For DHS, we've got an expense ratio of 0.38%. This is the smallest fund here, 778.8 million in assets under management, 319 holdings. A compound annual growth rate of 6.03%, annual dividend of $2.84 a share, and a dividend yield currently much higher, 3.98%. All right, next up here, we've got the iShares Select Dividend ETF, DVY. You can see the holdings here with this ETF are a little bit different. We've got Viacom, Altria, Wells Fargo, Lionel Bassel Industries, Prudential Financial, Marathon, Fifth Third, International Paper, Exxon Mobil, HP. So a little bit more off the wall here. It's got an expense ratio of 0.39%, 15.49 billion though under assets under management, 104 different holdings, compound annual growth rate of 7.54%, annual dividend $3.52, and a dividend yield of 3.43%. And then lastly on the list, I added this one at the last minute because I had a few people ask about it in the comment section of YouTube. We've got the iShares Core Dividend Growth ETF, DGRO. We've got Microsoft, JP Morgan, Apple, Johnson & Johnson, Verizon, Procter & Gamble, Pfizer, Intel, Home Depot, Cisco Systems. So a little bit of overlap between some of the ETFs in this reviews. It's got an expense ratio of 0.08%, 15.4 billion in assets under management, 394 holdings, a compound annual growth rate here much higher, 10.1%. It's got a $1.09 per share dividend amount annually, and the dividend yield is 2.36%. Now, what we wanted to do with these 11 different dividend ETFs is level the playing field, compare apples to apples here, and see which one performs the best. Now, you'll notice here that some of these dividend ETFs don't have as much of a history. Three of them do not have a 10-year price history. So we did two different model runs here. We took all 11 and took a 5-year price history on a month-by-month basis, what was the average price appreciation, and we compared all of them there based on a 5-year history. And then we looked at the dividend growth rate, and we figured out which one had the highest annual dividend income and the portfolio value, which was the highest based on a 5-year history of the price. And then we excluded those three, and we did the remaining eight, and we did a 10-year price history here, and still used the same compound annual growth rate. So when we look at the spreadsheet here, we can see average price changes over 10 years versus 5 years, and that three of the ETFs are great. Actually, four of the ETFs, excuse me, are great out. Four of them did not make the cut for 10-year price history. So we can see here we've got the average price appreciation month-by-month on average over those 10 years here and over 5 years here. So before we get started, I want to show you the assumptions here so you know exactly what data I worked with and how I came to the results that I did. First off here, we reviewed 11 different dividend ETFs. All of the price data was pulled from Yahoo Finance, okay? The dividend growth rate used for each ETF is the 5-year compound annual growth rate, and it was all pulled from Seeking Alpha's website. To capture the 10-year average price change history, I took an average of all the monthly price changes for those 10 years and took an average. Same thing with the 5-year average price history for each of the dividend ETFs. Now, SPYD, NOBL, DGRW, and DGRO did not have a 10-year history, so we excluded those from the 10-year results analysis. So the assumptions from a contribution standpoint, we had a zero balance at the beginning and the contributions were $400 a month and then increased annually by 3%. The portfolio value is the value at the end of the period after those 10 years. The dividend income that I'm showing you is the trailing 12 months of dividend income at the end of the period after those 10 years. And then the expense ratios are built into the price history. So without further delay, let's go ahead and take a look here and see how they performed. Let's start here with the 5-year price history, including every single dividend ETF here. So again, we're just taking the 5-year price history, the dividend compound growth rate. Which of these dividend ETFs had the highest annual dividend income? Let's take a look here. As you can see here, there's quite a swing in the annual dividend income. And this really stems from different objectives for the different dividend ETFs. Those that were focusing on growth dividend stocks are going to have lower dividend income. Whereas those that were focusing on high dividend yield had the higher annual dividend income. So the winner here, not by much, was actually WisdomTree, the U.S. High Dividend Yield. DHS is the ticker symbol here, had $3,582.23 in annual dividend income. Followed closely behind SCHD at $34.82. And then in third place, we had SPYD, the S&P 500 High Dividend Yield ETF. $35, $34, $34. Very close here. We've got some real lagging ones here. We've got Invesco S&P 500 Quality was only at $659.50 annually after 10 years. And then we also had up here Vanguard's Dividend Appreciation Fund, VIG, at $916. Otherwise, most everything else was in between the pack. Which one had the highest portfolio value? Let's take a look here. Highest portfolio value goes to Schwab at $135,000. So it was a player on the annual dividend income and portfolio value. Quite the balanced dividend ETF we have here. This is partly due to the fact that it had such a high compound annual growth rate. Hard to know if that's actually going to continue and be sustainable in the future. But for the past five years, it has been sustainable. First place goes to Schwab. Second place down here goes to WisdomTree at $123,902. And then third place goes to the S&P 500 Quality ETF at $120,000. There were a few outliers here, only $87,000 and $86,000 here. $86,000 for the iShares Core High Dividend ETF, HDV. And $87,000 here for the U.S. High Dividend Yield ETF, $87,000 there. So then what would happen if we actually based it off of a 10-year price history, which is probably more accurate here. So we're going to exclude, as you can see here, we're going to exclude SPYD, Noble, DGRW, and DGRO. How do the funds compare from an annual income perspective? The winner here is going to be Schwab, $34.84 and $0.30. When you factor in a 10-year price history. Second place goes to WisdomTree at $3,309.69. And then third place goes to the iShares Select Dividend ETF, DVY. We have some wave significant outliers here with Invesco S&P 500 Quality at $711. Let's take a look at portfolio value. The winner here again goes to Schwab, SCHD at $117,000. First place there. Second place goes to Invesco S&P 500 Quality at $109,000. And then third place goes to the Vanguard Dividend Appreciation Fund, $101,000. So very interesting here. We definitely saw a break here between certain dividend ETFs that were focused on kind of a balance between growth dividend stocks and ones that paid high dividend yields. So ETFs like the Vanguard Dividend Appreciation Fund, the Invesco S&P 500 Quality ETF, SPHQ. They had a much more significant focus on growth dividend stocks like Apple and Microsoft that didn't necessarily have high dividend yields, but were paying a dividend, whereas others had a significant weighting on high dividend yield and those had a much higher dividend income. As you can see, Schwab was in there. Then we had WisdomTree, U.S. High Dividend Yield at DHS. iShares Select Dividend ETF, DVY. And then we had like six or seven in the middle that were kind of balanced between dividend growth and dividend high yield. So very interesting to see these results here, depending on what your goals are. If you're looking at high dividend yield, then you're probably going to want to go with SCHD or potentially with DVY. If you're looking to capture a little bit of growth with your dividend yield, then you might go with VIG or potentially SPHQ, the S&P 500 Quality ETF. But very interesting to see these results here. I will make this spreadsheet available to my Patreon community. So if you wanted to fiddle around with the monthly contributions or if you wanted to fiddle around with the annual cost of living adjustments, you can go ahead and do that. It's going to be available to you there. In the next video I'll put out on next Friday, I'm going to take my actual portfolio. We're going to look at the actual dividend stocks I hold. We're going to look at the price history, the compound annual growth rate. I'm going to take it all together. I'm going to weight it based on how my portfolio is, and we're going to see if my portfolio, because a lot of the feedback I got was, well, yeah, it's easy to pick five different dividend stocks. You know what happened with them. I know, we have to look back somewhere, but I'm looking at what I have right now in my portfolio, 20 different dividend stocks, and compare that to the S&P 500 and these dividend ETFs to see which one comes out ahead. Let me know, guys, what other types of dividend stock videos you want to see from me. Do you want to see individual analysis from certain dividend stocks? Do you want to see more matchups between what I do in my portfolio versus what we see here with other dividend ETFs? You let me know. I want to make videos you guys want to watch, not ones I want to watch. I'm not my own audience. If you haven't done it yet, make sure to hit that subscribe button to make sure you don't miss any future videos on my channel, and make sure to leave your two cents in the comments below with a comment. That's all I got for you guys today. Have a great rest of your day, and please continue to stay healthy, both physically and financially. Have a good one.