However, VYM allows investors diversified exposure to companies such as Exxon Mobile (NYSE: XOM), MicroSoft (NasdaqGS: MSFT), and Chevron (NYSE: CVX). Also, some of the companies that are held in VYM have announced dividend raises this year. VYM is currently underweight in the financial sector, however, with the latest rally in the sector, this could change later on. [Total Return: Why Dividends Matter for ETFs]
Other U.S. dividend ETFs include:
- First Trust Morningstar Dividend Leaders Index Fund (NYSEArca: FDL)
- First Trust Value Line Dividend Index Fund ETF (NYSEArca: FVD)
- iShares Dow Jones Select Dividend Index ETF (NYSEArca: DVY)
- iShares High Dividend Equity Fund (NYSEArca: HDV)
- PowerShares ETF Trust Dividend Achievers Portfolio (NYSEArca: PFM)
- PowerShares High Yield Equity Dividend Achievers Portfolio (NYSEArca: PEY)
- Schwab US Dividend Equity ETF (NYSEArca: SCHD)
- SPDR S&P Dividend Aristocrats ETF (NYSEArca: SDY)
- Russell Equity Income ETF (NYSEArca: EQIN)
- Vanguard Dividend Appreciation ETF (NYSEArca: VIG)
- WisdomTree Equity Income Fund (NYSEArca: DHS)
- WisdomTree Total Dividend Fund (NYSEArca: DTD)
- WisdomTree LargeCap Dividend Fund (NYSEArca: DLN)
- WisdomTree MidCap Dividend Fund (NYSEArca: DON)
- WisdomTree SmallCap Dividend Fund (NYSEArca: DES)
- WisdomTree Dividend ex-Financials Fund (NYSEArca: DTN)
Vanguard High Yield Dividend Index
Tisha Guerrero contributed to this article.