5 Best ETF Trading Strategies for Beginners

3. Dividend Investing

Insider Monkey Score: 7

Several investors opt for dividend ETFs to implement an income strategy or to hold a diversified selection of quality stocks for long-term appreciation. Instead of conducting individual research to identify dividend-paying stocks, beginner investors can conveniently purchase a dividend ETF aligned with a specific strategy, whether it be focused on dividend appreciation or high yield.

Similar to individual dividend stocks, ETFs usually distribute dividends on a quarterly or annual basis. Investors have the option to receive these dividends as income, or they can opt for an automatic reinvestment approach, allowing the dividends to be used to acquire additional shares of the dividend ETF.