In this article, we discuss 5 best ETFs to invest in for the long-term. If you want to take a look at more exchange traded funds in this list, click 10 Best ETFs to Invest In For Long Term.
5. Vanguard High Dividend Yield Index Fund (NYSE:VYM)
Vanguard High Dividend Yield Index Fund (NYSE:VYM) tracks the performance of the FTSE High Dividend Yield Index, which measures the investment return of companies delivering high dividend yields. The fund follows a passively managed, full-replication approach, with an expense ratio of 0.06%. At the end of April, Vanguard High Dividend Yield Index Fund (NYSE:VYM) held 443 stocks, with the top 10 holdings comprising 22.60% of the total portfolio. The fund’s net assets stood at $55.8 billion.
One of the most prominent stocks that Vanguard High Dividend Yield Index Fund (NYSE:VYM) invests in is Exxon Mobil Corporation (NYSE:XOM), the Texas-based multinational oil and gas corporation. Exxon Mobil Corporation (NYSE:XOM) is an S&P 500 dividend aristocrat, with an impressive history of consistently increasing dividends for the last 39 years.
Exxon Mobil Corporation (NYSE:XOM) on April 27 declared a $0.88 per share quarterly dividend, in line with previous. The dividend is distributable on June 10, to shareholders of record on May 13. The company delivers a dividend yield of 3.57% as of June 3.
Rajiv Jain’s GQG Partners is the biggest shareholder of the company as of Q1 2022, with 51.80 million shares valued at $4.2 billion. Overall, 83 hedge funds were bullish on the stock at the end of March 2022, up from 71 funds in the prior quarter.
Here is what Goehring & Rozencwajg Associates has to say about Exxon Mobil Corporation (NYSE:XOM) in its Q3 2021 investor letter:
“After successfully replacing 25% of Exxon’s board of directors despite owning just 0.02% of the outstanding equity, Engine No. 1, the climate-focused activist hedge fund, met with Chevron’s management late last summer. In discussions that were later described as “cordial,” Chevron executives shared their plan to reduce carbon emissions. Subsequently, Chevron announced new plans to further reduce carbon output, along with their intention to appoint a new director with “environmental expertise.” Although it remains unclear exactly what Engine No. 1 is planning, rumors suggest the fund has contacted other investors, strongly suggesting they intend to launch a second campaign in the not-too-distant future.
What should Chevron expect?
It was recently reported by The Wall Street Journal that Exxon was considering abandoning two massive natural gas projects: the 75 trillion cubic foot (tcf ) Rovuma LNG project (capital cost $30 bn) and the 5 tcf Ca Voi Xanh offshore-Vietnam gas project (capital cost $10 bn). Exxon board members (most likely including the three supported by Engine No. 1) have publicly expressed concerns about both projects.
According to internal reports, these projects are among the highest CO2 producers in Exxon’s pipeline; it is no surprise these projects have been called into question. However, we find the plight of both fields to be perplexing since production would almost certainly be used to displace coal in electricity generation, cutting CO2 emissions by nearly 50%. This fact seems to be lost on the new Exxon board members.”
