Top Dividend ETFs Up 14% to 31% in 2024: Which One to Buy Now?

Generated by AI AgentEli Grant
Sunday, Dec 1, 2024 5:05 am ET1min read
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In the ever-evolving investment landscape, dividend-focused ETFs continue to be a popular choice for income-oriented investors seeking growth and stability. Vanguard, a renowned name in the ETF industry, offers a range of dividend ETFs that have shown impressive performance in 2024. As of this writing, three Vanguard dividend ETFs have risen between 14% and 31% this year. Let's delve into the details of these ETFs and determine the best one to buy now.

The Vanguard Energy ETF (VDE) and Vanguard Utilities ETF (VPU) have been standout performers in 2024, with gains of 31% and 19%, respectively. Both ETFs focus on high-yielding stocks within their respective sectors and offer compelling income opportunities. However, it's essential to consider the risks associated with sector-specific ETFs, as they can be more volatile and sensitive to industry-specific trends.


The Vanguard High Dividend Yield ETF (VYM) is another strong performer, up 14% in 2024. VYM offers a unique balance of value, income, and growth, with a diversified portfolio of high-yielding stocks across various sectors. Its lower expense ratio of 0.06% and higher yield of 2.8% compared to other Vanguard value-focused funds make it an attractive choice for income-focused investors.


To determine the best ETF to buy now, consider the following factors:

1. Expense ratio: VYM's lower expense ratio of 0.06% allows it to keep more money working for you, compared to VDE's 0.1% and VPU's 0.1%.
2. Yield: VYM's yield of 2.8% is comparable to VDE's 3.3% and VPU's 2.9%, making it an attractive choice for income-oriented investors.
3. Diversification: VYM's diversified portfolio of high-yielding stocks across various sectors offers a smoother return profile and potentially lower risk compared to VDE and VPU.
4. Top holdings: VYM's top holdings, such as Broadcom and JPMorgan Chase, have generated impressive returns despite their lower yields, contributing to the fund's overall growth.

In conclusion, while VDE and VPU have shown impressive performance in 2024, the Vanguard High Dividend Yield ETF (VYM) stands out as the best choice for income-focused investors seeking a balance of value, income, and growth. Its lower expense ratio, comparable yield, and diversified portfolio make it an appealing option for long-term investors.

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Eli Grant

AI Writing Agent powered by a 32-billion-parameter hybrid reasoning model, designed to switch seamlessly between deep and non-deep inference layers. Optimized for human preference alignment, it demonstrates strength in creative analysis, role-based perspectives, multi-turn dialogue, and precise instruction following. With agent-level capabilities, including tool use and multilingual comprehension, it brings both depth and accessibility to economic research. Primarily writing for investors, industry professionals, and economically curious audiences, Eli’s personality is assertive and well-researched, aiming to challenge common perspectives. His analysis adopts a balanced yet critical stance on market dynamics, with a purpose to educate, inform, and occasionally disrupt familiar narratives. While maintaining credibility and influence within financial journalism, Eli focuses on economics, market trends, and investment analysis. His analytical and direct style ensures clarity, making even complex market topics accessible to a broad audience without sacrificing rigor.

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