Invest in these high-performing Exchange-Traded Funds (ETFs) for a lucrative return.

Invest in these high-performing Exchange-Traded Funds (ETFs) for a lucrative return.

Investing in a diversified portfolio of dividend-paying stocks can provide a steady stream of passive income for many investors. One such option for those seeking high-yield returns is the Xtrackers STOXX Global Select Dividend 100 Swap UCITS ETF (WKN: DBX1DG), which offers a dividend yield of 7.8%.

This ETF is just one of the many options available for investors seeking a high-yielding dividend ETF. Many investors opt for widely diversified, high-yielding dividend ETFs for less effort, low costs, and broad diversification across countries and regions.

For example, to live off an annual dividend of €30,000 (€2,500 per month), an investor would need a portfolio of approximately €384,000 in the Xtrackers STOXX Global Select Dividend 100 Swap UCITS ETF. This is based on the ETF's current dividend yield of 7.8%.

On the other hand, to achieve the same annual dividend income with the Vanguard FTSE All-World High Dividend Yield UCITS ETF, which has a dividend yield of 3.2%, an investor would need a portfolio of approximately €937,500.

Dividend ETFs like the Xtrackers STOXX Global Select Dividend 100 Swap UCITS ETF offer investors a way to invest in a large number of stocks without having to research and select individual dividend stocks. This can make investing more accessible for those who might not have the time or expertise to manage a large, diversified portfolio.

However, it's important to note that higher dividends in the Xtrackers STOXX Global Select Dividend 100 Swap UCITS ETF may come with higher risks. As with any investment, it's crucial to do your research and consider your individual risk tolerance before making any decisions.

In addition, this article does not provide information on potential tax components or savings rates necessary to accumulate the required wealth for these ETFs. It's always a good idea to consult with a financial advisor or accountant to understand the tax implications of your investments.

Lastly, investors should not rely solely on dividend yield when making investment decisions. While a high dividend yield can be attractive, it's important to consider the overall performance and potential growth of the ETF, as well as its risk profile.

In conclusion, dividend ETFs can be a valuable tool for investors seeking a passive income stream. By investing in a diversified portfolio of dividend-paying stocks, investors can potentially generate a steady stream of income while minimizing the effort and cost associated with traditional stock picking. However, as with any investment, it's important to do your research and consider your individual risk tolerance before making any decisions.

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