Building a Passive Income Stream: 3 Top Dividend ETFs for Long-Term Returns

From Nasdaq: 2025-05-23 11:47:00

Looking for low-cost index funds that pay dividends? Consider Vanguard products, known for low expenses and excellent options in both mutual fund and ETF forms. Here are three Vanguard ETFs that could provide a passive income stream for long-term investors.

The Vanguard Dividend Appreciation ETF may have a 1.8% yield, but it focuses on stocks likely to grow dividends over time. With a growth-oriented portfolio and top holdings in tech giants like Broadcom, Microsoft, and Apple, it has generated 11.2% annualized total returns over the past decade with a 0.05% expense ratio.

Consider the Vanguard International High Dividend Yield ETF for international exposure at a discount. With a 4.2% dividend yield, this ETF tracks non-U.S. companies with above-average yields and offers diversification benefits. Top holdings include familiar names like Toyota, Shell, and Unilever.

The Vanguard Real Estate ETF could be a smart choice in a falling-rate environment. While underperforming in recent years due to interest rate trends, this ETF owns fundamentally sound stocks. With expectations of lower interest rates ahead, now might be a good time for long-term investors to explore this ETF.

Looking to create a passive income stream? Consider these three Vanguard Income ETFs for a combination of income, return potential, and peace of mind. While there are other active options available, these Vanguard ETFs provide a set-and-forget approach for long-term growth and income generation.



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