What are the benefits of dividend-focused ETFs?
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To hold my money for a longer time, i invested in VIG, QQQ, XMHQ and others. Dividend-focused ETFs (SCHD, VYM) and their returns seem lower than any other ETFs and because of that, mostly people are interested in them. Are dividend-focused ETFs genuinely more valuable than growth-focused ones? Am i lacking something? I am well aware of the fact that this is one of the most popular ETFs available in the American market.
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SCHD and VYM both give stability, but their growth is slower than other ETFs like QQQ or VIG. If your objective is consistent income, not fast growth, then they perform well. You are therefore lacking nothing; the focus should be on matching your financial growth.