Meet Harry. Back in 2017, he invested $50,000 into dividend ETFs. Eight years later, his portfolio looks completely different from what he expected. Not because he sold anything—but because one decision he almost didn’t make changed everything.
Here’s the story. Harry split his money evenly across four dividend ETFs everyone was talking about. Today:
One ETF made him wish he had gone all-in 💸
Another is down in price, but his income doubled
And the Reddit favorite? It's been his worst performer lately 😬
Quick note: This isn’t financial advice. Just sharing research for educational purposes. All investing carries risk, including the potential loss of principal. Always do your own research or talk to a financial adviser.
Let’s break down Harry’s journey and what you can learn before buying dividend ETFs in 2026.
The Biggest Mistake Dividend Investors Make 🚨
Most people chase yield. They see 3.8% and think “wow, that’s better than 1.6%!” Sure, in the first year, maybe. But Harry learned a tough lesson:
High yield today ≠ high income in 2035.
Markets change. Interest rates spike. Tech explodes. Sectors rotate. What worked in 2020 may flop in 2026.
Harry’s 4 Dividend ETFs: What Happened
1️⃣ VYM – Vanguard High Dividend Yield Index Fund
Yield: 2.49%
Expense Ratio: 0.06%
Holdings: 582 across every sector
Dividend Growth: 14 consecutive years
Harry liked VYM for its consistency. But over 5 years, dividends only grew 4.11% annually, slower than inflation 😬.
$12,500 → $25,369 by 2025
Annual dividend income: $632
VYM gives diversification but also dilutes fast growers with slow-growing companies.
2️⃣ FDV – Fidelity High Dividend ETF
Yield: 3.10%
Expense Ratio: 0.16%
Holdings: 120 (more concentrated)
Dividend Growth: 22% in one year!
This is where Harry’s income exploded.
$12,500 → $29,848
Annual dividend income: $926
FDV’s heavy tech exposure makes it riskier, but the dividend growth is insane.
3️⃣ SCHD – Schwab US Dividend Equity ETF
Yield: 3.80% (highest!)
Expense Ratio: 0.06%
Holdings: 103
Dividend Growth: 13 consecutive years
SCHD has been Harry’s biggest headache recently (-2.52% last year). But it’s a value play, loaded with energy and consumer staples.
$12,500 → $22,460
Annual dividend income: $851
Why keep it? SCHD performs when markets tumble. During the 2022 S&P drop, his dividends kept coming every quarter. 🛡️
4️⃣ VIG – Vanguard Dividend Appreciation Index Fund
Yield: 1.63% (low, but sneaky!)
Expense Ratio: 0.05%
Holdings: 340 high-quality, dividend-growing companies
Dividend Growth: 11 consecutive years
Harry almost skipped this one—but it became a game-changer.
$12,500 → $23,268
Annual dividend income: $379
Why? VIG focuses on growth with income, not chasing high yield. Over decades, this beats high-yield ETFs for long-term wealth building.
Harry’s Key Takeaways for Dividend ETFs in 2026 💡
Young investors (20s–40s): Focus on dividend growth. Heavy VIG + FDV weighting. Less yield now, bigger compounding later.
Near retirement (50s–60s): Focus on income. SCHD + VYM for stability.
Middle years: Mix all four and rebalance based on life changes.
Harry started with $50,000 in 2017. By 2025:
Portfolio → $100,891
Annual dividends → $2,788 (almost 2.5x higher than year 1)
💥 The secret isn’t picking the perfect ETF—it’s holding quality ETFs through ups and downs.
Ready to start your dividend ETF journey? 🚀
I recommend checking out Moomoo to buy these ETFs easily. It’s simple, fast, and managed by experts. Click here to get started and grab your ETF today 👉 Buy ETFs on Moomoo
💡 Pro Tip: Start small, stay consistent, and let compounding do the magic.
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