How can you generate passive income? To borrow a phrase from William Shakespeare, “Let me count ways.”

When they think about passive income, the properties of rent come to mind for many people. Some choose affiliate marketing. Creating online videos that attract advertisers have also become popular.

I think, however, that is an even more easy option. Do you want dormant income of decades? Purchase Schwab us dividers equity ETF ,Rider -0.42%, And hold it forever.

A passive income machine

Schwab US Dividend Equity ETF Dove Jones tries to track the performance of the US Divide 100 index. It currently owns 103 stocks, including top holdings Texas instruments ,Txn -0.03%,, Shehtir ,CVX -1.11%,, Conocophilips ,COP -1.13%,, Merk ,Staged -1.91%,And Cisco Systems ,CSCO -0.37%,,

Investors seeking passive income should prefer that the Schwab US Dividend Equity ETF has a great track record to increase its distribution. Since the installation of the fund on October 20, 2011, its distribution has increased by 541%. It translates to a mixed annual growth rate of about 14%.

In the last 12 months, this exchange-traded fund (ETF) has given a distribution yield of 3.87%. Its 30-day SEC yield Little at 3.85%. Investment of $ 100,000 at the bottom of those two yields will generate an annual income of $ 3,850. This is not a bad money, to fulfill any attempt beyond purchasing Schwab US Dividand Equity ETF.

Likes more about this ETF

Income investors should also appreciate that Schwab US Dividend Equity ETF is a relatively low risk. Sure, Dow Jones US Dividend 100 Index that tracks it High yield dividend shareWhich sometimes come with high risk levels. However, the manager of the index selects stocks that have a record of continuity in paying dividends. They also look for shares of companies that are financially stronger than their peers.

An attractive assessment contributes to a low -risk profile of this ETF. The average stock in fund portfolio is 16 times less than 12 months earnings. Although it is not exceptionally cheap, it is much less than that S&P 500‘S ,^GSPC -0.01%, Price-to-earnings of about 30.

The long -term performance of Schwab US Dividend Equity ETF is not very dilapidated, either. Since its inception, ETF has given average annual return 12.3%. In the last five years, the average annual return of the fund was 12.9%

You will not pay through the nose for this top-tier dividend ETF. Its annual expense ratio A modest is 0.06%. The low cost of the fund is the direct reflection of its passive management approach.

Last, but not at least, liquidity is not a problem in which Schwab US Dividend Equity is ETF. The total net assets of the fund topped $ 70.2 billion. Its average daily trading volume is about 16 million shares. While I think it is a great strategy to buy and hold this ETF forever, you will be able to sell it easily if needed.

The best dividend of all ETF?

Is Schwab US Dividend Equity ETF currently the best dividend ETF on the market? I think it is a strong argument that it is.

Give, you can find dividend ETFs that provide high yields. For example, SPDR Portfolio S & P 500 High Dividend ETF‘S ,detective 0.18%, The distribution yield is about 4.5%. JP Morgan Nasdaq Premium Equity ITF ,Jepq -0.06%, Game 11.3%ultra-high yield.

However, a high yield is not everything. The reliability of distribution, capacity for distribution growth, and history of overall returns are important factors to consider well. Schwab us is highly equity ETF score in all these categories.

I will not try to claim that Schwab US Dividend Equity ETF is the best dividend ETF of all undeniably. But it tops the list, in my opinion.