VIG, FDVV, IGLB and TLT Compared: Fees and Returns
The Motley Fool compares two dividend ETFs (VDIG and FDVV) and long-term bond ETFs (IGLB and TLT) based on expense ratios, dividend yields, and 5annual performance. It summarizes VIG as featuring low costs and broad diversification, FDVV as offering a higher dividend yield, IGLB as combining a relatively high dividend yield with low costs, and TLT as providing primarily Treasury exposure.
This comparison article examines how differences in expense ratios and returns between dividend ETFs and long-term bond ETFs directly affect investors’ choices. From an investor perspective, fee and return metrics are presented as key points.
The Fidelity High Dividend ETF (FDVV) offers a dividend yield of 2.80%. The article reports that FDVV delivered stronger performance in its recent 5-year returns.
The Vanguard Dividend Appreciation ETF (VIG) has a low-cost structure with an expense ratio of 0.04%. The VIG portfolio consists of 331holdings.
VIG explains that it excludes stocks in the top 25% by dividend yield and holds relatively safe dividend stocks. The author recommends VIG for long-term dividend growth and risk management.
iShares’ IGLB charges an expense ratio of 0.04%. IGLB’s dividend yield is reported at 5.20%.
TLT is an ETF focused on U.S. Treasuries with maturities of 20 years or more; its expense ratio is 0.15%, and its dividend yield is 4.60%.
According to the article, based on 5 years of returns, IGLB was valued at 908 dollars. On the same basis, TLT was valued at 714 dollars.
The articles conclude that IGLB provides corporate bond exposure, while TLT provides pure U.S. Treasury exposure. TLT has lower credit risk but greater interest-rate sensitivity.
Sources: The Motley Fool
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