Part 4/9:
Conversely, the UK equivalent, the FTSE 100, traditionally offers higher dividends. Investing the same £10,000 in an ETF such as the Vanguard FTSE 100 can yield up to £383 annually, thanks to its current dividend yield of 3.83%.
High Dividend Funds
To achieve a higher dividend yield, investors can opt for specific funds focused on income rather than capital growth. A notable example is the iShares UK Dividend ETF, which carries a 5.41% yield, potentially providing £541 from your initial £10,000 investment. Such funds attract older investors seeking stable income, especially during market downturns.