Part 4/7:
For a hands-off investment approach, dividend ETFs represent a cost-efficient way to gain exposure to a wide range of dividend-paying stocks. For instance, the iShares UK Dividend ETF (IUKD) is a popular option in the UK, encompassing the top 50 dividend-yielding stocks.
2. Sector-Specific ETFs
Investing in sector-oriented ETFs can cultivate enhanced diversification and access to potentially higher dividends. For instance, some sectors, such as real estate or financials, present attractive yield opportunities, albeit accompanied by unique risks.