If you’re new to investing, consider exchange-traded funds (ETFs) as they are highly liquid and provide diversification. ETFs can also pay dividends, making them appealing to risk-averse investors. The Vanguard Long-Term Corporate Bond ETF (VCLT) focuses on investment-grade corporate bonds with an expense ratio of 0.03%.

Corporate bonds carry credit risk, but VCLT has 89% of bonds with investment-grade ratings of A or BBB. Bonds also have interest rate risk, which can impact their value. Despite interest rate fluctuations, VCLT aims to generate passive income with a current yield of 5.62%.

While VCLT offers high dividend yields, consider other top stock picks for potential returns. The Motley Fool Stock Advisor team identified the 10 best stocks for investors, excluding VCLT. Stock Advisor has a total average return of 1,004%, outperforming the S&P 500. Don’t miss out on the latest top stock picks with Stock Advisor.

Read more at Yahoo Finance.: Have $200 to Invest? This High-Yield Vanguard ETF Could Help Kick-Start Passive Income.