Latest news with #Vanguard
Yahoo
8 hours ago
- Business
- Yahoo
Could Buying Vanguard Dividend Appreciation ETF Today Set You Up for Life?
Vanguard Dividend Appreciation ETF attempts to use dividends to identify growth stocks. The ETF's yield is 1.8%, which is somewhat higher than the S&P 500 index's 1.3%. Investors looking for income will want to think carefully before buying the Vanguard Dividend Appreciation ETF. 10 stocks we like better than Vanguard Dividend Appreciation ETF › Vanguard Dividend Appreciation ETF (NYSEMKT: VIG) is an interesting exchange-traded fund (ETF). It has the word dividend in the name, but it really doesn't have a high yield at around 1.8%. Is this an ETF that could set you up for life, or would it actually set you up for disappointment? Here's what you need to know. The Vanguard Dividend Appreciation ETF tracks the S&P U.S. Dividend Growers Index. This index is fairly simple. First, it pulls out all of the U.S. companies that have increased their dividends for at least 10 consecutive years. And then it removes the 25% with the highest dividend yields because these companies have a greater chance of being yield traps that could potentially cut their payouts. Everything else gets into the index and into the Vanguard Dividend Appreciation ETF. The stocks are market-cap-weighted, so the largest companies have the greatest impact on performance. When you step back and examine the ETF's name, Vanguard Dividend Appreciation ETF pretty much does what it says it does. Even eliminating the highest-yielding 25% of investment candidates is logical, given that it likely removes stocks that are at the highest risk of a dividend cut. So, if you want to own a diversified collection of stocks that increase their dividends regularly, Vanguard Dividend Appreciation could set you up for a lifetime of doing just that. But is it the best exchange-traded fund for you? That's a different question. For starters, Vanguard Dividend Appreciation's 1.8% dividend yield is higher than what you'd get from an S&P 500 (SNPINDEX: ^GSPC) ETF like Vanguard S&P 500 ETF (NYSEMKT: VOO), which has a 1.3% or so yield. But 1.8% is hardly a large yield on an absolute basis. You could do better with Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD), which has a roughly 4% yield. Schwab U.S. Dividend Equity ETF also picks from the U.S. stocks that have increased dividends for 10 years. But it layers on a screening process that focuses on buying high-quality, growing businesses with attractive yields. It leans more toward yield than the Vanguard Dividend Appreciation ETF, making the Schwab U.S. Dividend Equity ETF a better choice if you are looking for income. What about "appreciation," for those more interested in total return? Looking at Vanguard Dividend Appreciation ETF's total return versus the Vanguard S&P 500 ETF paints an ugly picture. As the chart below highlights, just buying the S&P 500 index would have resulted in a notable improvement in total return. All in, you can do better on the yield front than Vanguard Dividend Appreciation ETF with a more refined investment approach like the one offered by Schwab U.S. Dividend Equity ETF. And you can do better on the total return front with a simple S&P 500 tracking ETF. Since dividends and appreciation are the two main reasons to buy Vanguard Dividend Appreciation ETF, it doesn't come across as a compelling buy. To be fair, Vanguard Dividend Appreciation ETF isn't a horrible ETF. It will likely continue to provide investors with a modest level of dividends and some capital appreciation over time. You probably wouldn't be making a huge mistake buying it if you like to focus on companies that regularly increase their dividends. However, if you are looking to maximize either income or capital appreciation, there are clearly better options out there. Before you buy stock in Vanguard Dividend Appreciation ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Vanguard Dividend Appreciation ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $638,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $853,108!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Vanguard Dividend Appreciation ETF and Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy. Could Buying Vanguard Dividend Appreciation ETF Today Set You Up for Life? was originally published by The Motley Fool Sign in to access your portfolio
Forbes
9 hours ago
- Business
- Forbes
Is Your Broker Gouging You? Use This Guide To The Best Buys In Money Markets
Brokerage firms are short-changing customers with their money-market funds, says one angry commentator. Gosh. These brokers deliver a lot of terrific service for free (custody, trading, research). How are they supposed to pay for it all? Instead of grousing, do this: Accept the fact that the brokerage has to cover its costs, but arrange your affairs so that some other customer picks them up. This survey shows you how to side-step expensive money funds. The path to low-cost portfolio management has two elements. First is to set up your finances so that the cash in your transaction accounts, where you can't avoid high management fees, is kept to a minimum. The second is to shuttle excess cash in and out of some other safe, liquid investment, one with a low management fee. The transaction accounts, for paying bills, receiving direct deposits and settling securities trades, might have $10,000 most of the time and more than that only when there's a need. The low-fee account might have $100,000 most of the time. If you do business at Vanguard, that low-fee account could be a Vanguard mutual fund. Anywhere else, you have to be creative, because the money market fund on offer is going to be expensive. Instead of using a Schwab or Fidelity money fund for the $100,000, buy shares in an exchange-traded fund that behaves like a money fund but has a much lower expense ratio. You have to keep an eye on the balance in the transaction account. When it needs feeding, sell some of the ETF shares (or Vanguard fund shares) a day ahead. When the trade settles the following day, move cash into the transaction account. At some institutions you'll be juggling three pots of money: a brokerage account where you hold the ETFs and other shares; a 'settlement fund' that handles proceeds of stock sales and payments for shares bought, and a 'cash management' account that does your everyday banking. It's a shame that you have to juggle at all, but the brokers evidently hope that you won't have the patience for the transfers and so will leave idle cash in places where they can help themselves to a chunk of the interest. If you are inattentive, you will have too much in a settlement account with a disappointing yield or too much in a cash management account with a terrible yield. Not even Vanguard is above such mischief. It sells low-cost money funds, but the one you want most if you live in a high-tax state, Vanguard Treasury Money Market, cannot be used as your settlement fund for securities trades. (Why is it in Vanguard's interest to force you to pay state income tax? I'm waiting for an answer from the company.) Vanguard's cash management account has a 3.65% yield, which, at a time when Treasury bills yield 4.35%, is equivalent to a money market fund with a very stiff management fee. Let's assume you have wised up to moving cash into the brokerage account and want to deploy it. Where are the best deals? Here's what Vanguard has to offer in low-cost money-market mutual funds: For most Vanguard investors, the Treasury fund is the best choice, although the three funds with municipal paper might be useful to taxpayers in the highest federal bracket. Muni funds, it should be noted, have very volatile yields. A month ago they were paying a percentage point more. Everyone not banking at Vanguard needs to use an ETF to hold large cash balances. Here are the best ones: You can get in and out of a Vanguard mutual fund with no sales fee. In an ETF you're going to get hit with a bid/ask spread of a penny or two a share. Except over a short holding period, the trading cost is likely to be less consequential than the management fee. ETFs are a tiny bit riskier than money funds, since shifts in the yield curve can move their prices. This is a fair bet for you: Rate changes are as likely to make you a few extra cents a share as to lose you money. If the risk bothers you, sort the table on the duration column and select a very short-term portfolio. Now that you have optimized the yield from cash, ponder this question: Do you maybe have too much of it? I see three fallacies that lead savers to make this mistake. Fallacy #1: The bucket strategy. This one, oh so popular with financial planners, goes like this: Once you are retired, you need to have two years of spending in a cash bucket. That way, they tell you, you will not be forced to sell stocks at an inopportune time. To which I respond: Great. Now tell me when the opportune times to sell stocks will occur. Fallacy #2: The rainy-day kitty. This is the advice given to younger people. Put six months of spending into a bank account to cover emergencies. You could get laid off. I agree that a reserve fund, ideally outside your 401(k), is a great idea. But it doesn't have to be in cash equivalents. It could be invested in stocks and bonds. Their liquidity is high. You get next-day settlement. Instead of six months of spending in a CD, set aside 12 months of spending in ETFs. That gives you more protection and a better shot at living well later. Fallacy #3: The dry-powder notion. Instead of putting 100% of your stock money in stocks, you invest 80%, leaving money to deploy after a crash. This might work for Warren Buffett, who's sitting on a lot of cash at Berkshire Hathaway. But how confident are you that you can identify a market low? Did you buy stock in March 2009, during the financial crisis? Did you buy in March 2020, in the pandemic? If you didn't, maybe it's time to give up on the idea you can time the market. MORE FROM FORBES
Yahoo
20 hours ago
- Business
- Yahoo
Can You Guess What Americans Think They Need To Retire Comfortably? Hint: The 'Magic Number' Just Dropped From Last Year
If you've ever assumed retirement meant having a seven-figure nest egg, you're in good company — and maybe a little stressed. For years, Americans have treated the $1 million mark as the gold standard for retiring comfortably. Anything less? Cue the panic attacks. But according to Northwestern Mutual's just-released 2025 Planning & Progress Study, the average American now believes they need $1.26 million tucked away to retire in peace. That's actually down from $1.46 million last year. Don't Miss: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. Sure, the so-called magic number dropped by $200,000, but don't pop the champagne just yet. According to the same study, most Americans are still wildly unprepared. More than half – 51% – say it's somewhat or very likely they'll outlive their savings. Only 16% feel confident that outliving their savings is "very unlikely." So if your retirement plan is "hope for the best," you're not alone. The 'magic number' to retire comfortably may be down this year, but it's still far beyond what many people actually have. And the gap isn't just wide — it's a canyon. Vanguard's 2024 report puts the average 401(k) balance across all age groups at just $134,128. That's barely a tenth of what Americans say they'll need to retire comfortably. Trending: Maximize saving for your retirement and cut down on taxes: . And what's behind the drop? Inflation is still top of mind, but it's cooled off—dropping from around 6% in 2023 to about 3% in 2024. That doesn't mean prices are falling; it just means they're not rising quite as fast. Groceries still feel like a splurge and rent still makes you cry, but apparently, that slight dip was enough for Americans to shave down their expectations. Either way, the new target still feels like a stretch. One in four Americans has just a single year of income saved. Among Gen X'ers, 52% have saved up to three times their annual income, but 54% don't think they'll be financially ready to retire when the time comes. Which raises a fair question—not from a study or expert, just plain observation: Are Americans adjusting the number because they think they can genuinely live on less, or have they just accepted that $1.26 million sounds more reachable than $1.46 million? Maybe this is optimism. Maybe it's financial you're wondering how anyone hits that $1.26 million target: you either start young or start wealthy. To get there by age 65, a 20-year-old would need to sock away $330 a month at a 7% return. Wait until you're 50? That jumps to a casual $3,958 per month. Yes, the goal dipped—but the struggle to reach it hasn't. Americans may be adjusting expectations, but most still have a long way to go before retirement feels anything close to "comfortable." Read Next: Many are using retirement income calculators to check if they're on pace — Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Image: Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Can You Guess What Americans Think They Need To Retire Comfortably? Hint: The 'Magic Number' Just Dropped From Last Year originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Yahoo
21 hours ago
- Business
- Yahoo
Vanguard Files for New Emerging Markets Ex-China ETF
Vanguard is diving into one of the most politically charged corners of the ETF world with the filing of a new fund that will offer exposure to emerging markets—excluding China. According to a preliminary prospectus filed with the SEC on May 30, the Vanguard Emerging Markets ex-China ETF will track the FTSE Emerging ex-China Index, an index that omits China while maintaining broad exposure to the rest of the developing world. It's an intriguing move, especially given the current geopolitical backdrop. U.S.-China relations are as strained as they've ever been. President Donald Trump recently imposed tariffs on Chinese goods that exceeded 100% before scaling them back temporarily. But even without the tariff drama, concerns about China's market environment have been mounting. Investors have grown increasingly wary of the Chinese government's interventions in its domestic economy, crackdowns on high-profile companies, threats of delisting Chinese firms from U.S. politicians and the ever-present risk of conflict over Taiwan. Add in demographic headwinds and disappointing economic growth, and it's no wonder Chinese equities have weighed on sentiment toward the broader emerging markets category. That's taken a toll on traditional emerging markets ETFs. The two largest funds in the category—the iShares Core MSCI Emerging Markets ETF (IEMG) and the Vanguard FTSE Emerging Markets ETF (VWO)—have $88 billion and $86 billion in assets, respectively, but both have significant exposure to China and Taiwan. IEMG allocates 26% to China and 18% to Taiwan; VWO has 32% in China and 18% in Taiwan. Over the past five years, IEMG and VWO have returned 41% and 43%, respectively, lagging the 61% return of the Vanguard Total International Stock ETF (VXUS) during the same period. As a result, more investors have turned to emerging markets strategies that exclude China altogether. The iShares MSCI Emerging Markets ex China ETF (EMXC), which launched in 2017, had just $3 billion in assets at the start of 2023. Today, it boasts $14 billion. Performance for EMXC has been mixed relative to its full-market counterparts. Over the past five years, it's returned 58%—solidly ahead of VWO and IEMG. But since its inception in July 2017, EMXC is up 39%, similar to VWO at 40% and only modestly better than IEMG's 34%. Still, that hasn't stopped investors from pouring into the strategy. And now, Vanguard is ready to tap into that demand, while undercutting its competition. The new ETF will charge just 0.07%, well below EMXC's 0.25% fee. In terms of exposure, the new fund is expected to look similar to EMXC. The FTSE Emerging ex China Index excludes China's mainland stocks but includes heavy allocations to India (33%) and Taiwan (around 25%). Combined, those two markets will represent 58% the portfolio, a major shift from their traditional emerging markets weighting, which is closer to 40%. Vanguard hasn't yet disclosed the ticker or launch date but, with this filing, it's clear the firm sees growing appetite for emerging markets without China. And in typical Vanguard fashion, it's coming after that segment with an industry-low | © Copyright 2025 All rights reserved Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Local Germany
a day ago
- Business
- Local Germany
What to study in Germany to land a high-paying career
Most German universities offer high quality teaching, world-class facilities, courses in English, and internationally recognised degrees. Tuition is also state funded at Germany's public universities and colleges. The only additional charge for non-EU/EEA international students is a small 'semester fee' of between €100 and €300. That is except in the state of Baden-Württemberg -- home to Heidelberg University -- which levies a fee of €1,500 per semester on non-EU/EEA students. But which courses, and universities, offer the best prospect of a high-flying career? It's no big secret that to land a high-paying job in Germany, you'd be well advised to study something in the field of engineering or IT. In an effort to advise the next generation of skilled workers who may want to emigrate to Germany, the Nigerian newspaper Vanguard recently compiled a list of the top courses to study with high employment opportunities in the country. Unsurprisingly, six out of ten of those subjects fell into the IT or engineering fields. But arguably as important as picking the right subject to study is picking the right university. After all, the school you enrol in determines the quality of your courses as well as the peers you're exposed to, and often also the opportunities you'll get upon graduation. With all of that in mind, here's The Local's guide to the subjects that are ideal for those looking to secure a well-paid job in Germany after their studies -- and a few of the top German institutions for studying them. READ ALSO: The best-paid jobs you can get without a university degree in Germany Note that the institutions listed here are internationally recognised in the fields indicated, but they're only the tip of the iceberg. With roughly 400 universities and technical colleges, Germany has something to offer everyone. Visit the DAAD website for a comprehensive overview. All salary estimates are from Payscale . Engineering A recognised global centre of excellence for all things engineering, Germany is home to industrial giants including Siemens, Bosch, Volkswagen, and BMW. Graduates in engineering from universities including the Technical University (TU) of Munich, RWTH Aachen University, and Karlsruhe Institute of Technology are at the heart of Germany's energy transition, as well as numerous new developments in automation. Advertisement Courses in mechanical engineering, electronic engineering, automotive engineering and environmental engineering place a strong emphasis on research, design, and real-world applications. An engineer works in the clean room of the pilot production plant for SOEC electrolyzers of Thyssenkrupp. Photo: picture alliance/dpa | Martin Schutt According to Payscale, the average salary for an engineer in Germany in 2025 ranges from €44,000 for an environmental engineer to €57,000 for an automotive engineer. TU Berlin, the University of Erlangen Nuremberg, and TU Dresden are particularly well-regarded for electrical engineering. For budding automotive engineers, TU Munich, the University of Stuttgart, and Wolfsburg University of Applied Sciences have strong connections with BMW, Mercedes Benz, and VW respectively – offering access to potential internships and entry-level positions. READ ALSO: Weimar to Heidelberg - The best German university towns for foreign students Computer science, IT, and machine learning Advertisement Like engineering, computer science is a catch-all term covering a range of university courses and an even greater variety of career opportunities, from IT and AI to cybersecurity and software development. Germany is currently investing heavily in digitalisation and AI across sectors including finance, logistics and health – and leading universities typically partner with start-ups and multinationals to provide hands on experience as well as pathways into rewarding tech roles. According to Payscale, the average salary for a computer scientist in Germany is currently €55,000. According to the Study in Germany website, TU Munich, TU Berlin, RWTH Aachen University, the University of Munich, and Karlsruhe Institute of Technology are the top five institutions in Germany for a degree in computer science. Architecture There are times when it feels as if all of Germany is a building site. With ambitious plans to add to the country's housing stock, as well as to modernise and re-purpose existing buildings, there are numerous opportunities for ambitious young architects. Graduates who want to work abroad will also benefit from the focus at German universities on green design, urban planning, and energy efficiency. Arch20 has a useful list of the top ten architecture schools in Germany, featuring Weimar University, Brandenburg University, and Wuppertal University. The average salary for an architect in Germany is €39,000. Business Administration & Management As with engineering and computer science, German universities offering business administration courses make a point of encouraging students to gain as much hands-on experience as possible. Advertisement Courses typically begin by covering the basics of economics, marketing, and accounting, before offering students an opportunity to focus on a specific area. The University of Mannheim, the Frankfurt School of Finance and Management, and the School of Business & Economics at Berlin's Free University are all renowned for their business administration courses. Payscale estimates that the average salary for business administration graduates in Germany is €55,000 – but, as with many of the jobs listed here, the sky's the limit. Medicine, Healthcare & Psychology Germany is currently suffering from a well-publicised and acute shortage of doctors and healthcare professionals. A strong command of German is required to study many of these subjects in Germany (more so than for subjects such as engineering or computer science), but international students willing and able to make the effort are almost guaranteed to walk into a secure position on graduation. Psychology is currently one of the most popular fields of study in Germany. Photo by Alex Green from Pexels While psychology is currently one of the most popular fields of study in Germany, the number of graduates does not seem to be slowing demand in the workplace. Depending on the area students choose to focus on, a degree in psychology can lead to opportunities across a range of different fields – including healthcare and counselling, as well as jobs in the private sector such as human resources, market research, and marketing. The average wage for psychology graduates varies wildly depending on the chosen career path. As a general rule, however, a career in business tends to attract the highest salary. There are many renowned medical schools in Germany, including Heidelberg University, the Charité in Berlin, and the University of Lübeck. Ludwig-Maximilian University in Munich, Humboldt University in Berlin, and the University of Mannheim enjoy similarly stellar reputations for psychology. RANKED: The 'best' universities in Germany for 2025
