As global capital markets continue to mature and diversify, Exchange-Traded Funds (ETFs) have become a favored investment tool for their flexibility and variety. Among them, US stock ETFs stand out due to their broad market coverage, lower expense ratios, and convenient trading options, garnering significant investor interest. Within the vast array of US stock ETFs, dividend-paying ETFs are particularly notable for their ability to provide regular cash flows.

Overview of Dividend-Paying US Stock ETFs
Dividend payouts in ETFs refer to the regular cash distributions that investors receive during their holding period, derived from the income generated by the assets held within the ETF. Dividends from US stock ETFs typically originate from the dividends or interest income earned on the stocks or bonds held within them. The dividend yield, investment objectives, historical performance, and diversity of holdings are crucial factors to consider when selecting dividend-paying ETFs.

Dividend Ranking of Popular US Stock ETFs
Below is the dividend ranking of some popular US stock ETFs:

*Note: Annualized Dividend Yield = (Dividend per Unit / Base Date Net Asset Value × Number of Dividend Payouts per Year) × 100%. The calculation of ETF dividend yield is for reference only and should not be used as investment advice.

Data Source: fundhot, CMoney US Stocks
Data as of April 29, 2024.

Factors to Consider When Investing in US Stock ETFs
When investing in US stock ETFs, investors should consider factors beyond dividend yield:
●Tax Implications: Dividend income from US stock ETFs may be subject to tax laws in both the US and the investor's home country, such as Taiwan.
●Expense Ratio: Variations in expense ratios among different ETFs can impact long-term investment returns.
●Asset Allocation: Investors should select ETFs based on their risk preferences and investment objectives.
●Market Volatility: Market fluctuations can affect an ETF's net asset value and dividend stability.

Process of Purchasing US Stock ETFs
It's crucial for investors to research the basic information of ETFs, helping them understand their operations, risks, and potential returns. Here's how to access basic information about ETFs:
1.Visit an ETF Information Website: Start by visiting a platform that provides ETF information, such as uSMART platform.
2.Search for ETF Codes: Enter the ETF code you want to research into the search box on the website. Alternatively, you can click on provided ETF code links on the page.
3.Review ETF Basic Information: Once you've found the specific ETF, review key information including:Basic Details: ETF issuer, expense ratio (also known as management fee), dividend yield, number of holdings, price change, 52-week price range, trading volume, and ETF net asset value.

• • Holdings Distribution: Understand the top ten holdings of the ETF, country allocation of investments, industry and market cap distribution ratios, aiding in assessing the ETF's investment diversity and concentration.
  • Historical Performance: Check the ETF's historical annualized return, cumulative return, standard deviation (a statistical measure of volatility), maximum drawdown (the largest single decline in value historically), Sharpe ratio (a risk-adjusted return measure), etc.
  • Fund Flows and Dividends: Understand the ETF's net fund inflow, reflecting the overall market sentiment towards the ETF. Additionally, review the annual dividend payout amount and timing, particularly important for investors seeking regular cash flow.

4.Compare ETFs: Lastly, compare different ETFs to help you make the best choice among numerous options. Consider various factors mentioned above and how they align with your investment goals and risk preferences.
5.Conduct In-depth Analysis: For deeper analysis, you may need to review ETF holding details, fee structures, tax treatments, and management commentary.
6.Consult Professionals: If you encounter difficulties in analyzing ETF information or require more professional advice, consider consulting a financial advisor or investment expert.

How to place a trade on uSMART mobile application
After logging into the uSMART SG app, click on "US Stocks" from the top right corner of the page, then select "Popular ETFs" from the "Quick Access" section, or directly search for the desired US stock ETF code. You can then access the details page to learn about trading details and historical trends. Click on "Trade" at the bottom right corner, choose the "Buy/Sell" function, then select the quantity and validity period before submitting the order. The image-guided steps are as follows:

This diagram is provided for illustrative purposes exclusively

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Important Notice and Disclaimer:
We have based this article on our internal research and information available to the public from sources we believe to be reliable. While we have taken all reasonable care in preparing this article, we do not represent the information contained in this article is accurate or complete and we accept no responsibility for errors of fact or for any opinion expressed in this article. Opinions, projections and estimates reflect our assessments as of the article date and are subject to change. We have no obligation to notify you or anyone of any such change. You must make your own independent judgment with respect to any matter contained in this article. Neither we or our respective directors, officers or employees will be responsible for any losses or damages which any person may suffer or incur as a result of relying upon anything stated or omitted from this article.
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The value of these securities and the income from them may fall or rise. Your investment is subject to investment risk, including loss of income and capital invested. Past performance figures as well as any projection or forecast used in this article is not indicative of its future performance.
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