Dividend ETFs are enjoying their moment in the sun this year despite a down economy. Dividend stocks, in general, are one of the few ways to fight inflation. One report indicates that, in some historical cases, dividends offset massive stock losses to leave investors effectively flat (compared to wide market losses). At the same time, since dividend reinvestment is a breeze today, you can easily build a larger position ready for a market rebound through dollar-cost averaging.
Of course, stock picking isn’t everyone’s bag – especially in uncertain times. This is where dividend ETFs shine. Rather than staking a claim on a handful of dividend stocks, you gain exposure to many at once and reduce the risk and volatility associated with a handful of companies.
But be careful. Many of the “best” dividend ETFs comprise the same handful of big names in the industry. To best expand your horizons, find dividend ETFs with limited overlap that offer diversified exposure. These three dividend ETFs meet that criteria.
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