2 High-Yield Dividend ETFs to Buy to Generate Passive Income

Investing in dividend stocks is one of the easier ways to generate passive income. The only work you need to do is build a diversified portfolio of high-quality, high-yielding dividend-paying stocks. You can then sit back and watch the dividend income flow into your account.

An even easier pathway to passive income is to invest in an exchange-traded fund (ETF) focused on higher-yielding dividend-paying stocks. Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) and Vanguard Real Estate ETF (NYSEMKT: VNQ) are great options. These ETFs each hold over 100 higher-yielding dividend-paying stocks, providing instant diversification. Here's a closer look at these two higher-yielding dividend ETFs.

Schwab U.S. Dividend Equity ETF is a passively managed fund that tracks the total return of the Dow Jones U.S. Dividend 100 Index. That index features 100 of the country's top Dividend stocks and focuses on higher-yielding companies with strong records of consistently paying dividends. It selects companies based on their financial strength compared to their peers.

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Source Fool.com