Best Dividend ETFs for Long-Term Investors in 2025

There is one thing we can all agree on: picking dividend stocks is time-consuming. No one wants to spend their free time filtering through stock screeners or analyzing the financial statements of every dividend stock (and I completely understand that 😊). If you’re unsure how to choose safe dividend stocks or find the process overwhelming, no worries—I’m here to help. Let me introduce… Dividend ETFs!

If you haven’t heard of them, ETFs (short for Exchange Traded Funds) are funds that hold assets such as stocks or bonds. You can purchase shares of these ETFs just like individual stocks. One of their greatest advantages is the immediate diversification they offer, eliminating the need to painfully go the process of selecting individual stocks. This product is ideal for those who want exposure to the stock market without spending days building a portfolio.

Here are the criteria I use to select dividend ETFs on this post:

• Fees: Also known as the expense ratio.
• Past Performance (since inception): Although past performance does not guarantee future results.
• Assets Under Management (AUM): just a fancy word to describe the ETF size.
• ETF Provider Reputation: The popularity and credibility of the ETF provider ( like Vanguard or BlackRock, Fidelity…).
• Dividend Yield: The final criterion that reflects the income distributed by the selected ETF.

US Dividend ETF No.1

First on my list is Fidelity High Dividend ETF (FDVV). Its primary objective is to invest in large- and mid-cap companies with high dividend yields that are expected to sustain and increase their dividends.

1. Fees : Expense ratio at 0.16%
2. Average annual return since inception : 12.67%
3. Assets Under Management : $4.59 Billion as of 31.01.2025
4. Dividend yield: 2.91% (Quarterly Distributions)

US Dividend ETF No.2

Schwab U.S. Dividend Equity ETF (SCHD) is well-known among dividend stock lovers. Its primary objective is to invest in U.S. companies that offer high dividend yields and have proven track record of consistent dividend payments.

1. Fees : Expense ratio at 0.06%
2. Average annual return since inception : 12.99%
3. Assets Under Management : $67.2 Billion as of 07.02.2025
4. Dividend yield: 3.75% (Quarterly Distributions)

International Dividend ETF No.3

The third option is offered by a renowned institution. The Vanguard International Dividend Appreciation Index Fund (VIGI) aims to invest in high-quality companies across developed and emerging markets (excluding the U.S.) that demonstrate both the capacity and commitment to increase dividends over time.

1. Fees : Expense ratio at 0.1%
2. Average annual return since inception : 8.31%
3. Assets Under Management : $7.3 Billion as of 31.12.2024
4. Dividend yield: 3.43% (Quarterly Distributions)

Europe Dividend ETF No.4

As a European, I cannot put together an ETF list without including European ETFs. Therefore, the Franklin European Quality Dividend UCITS ETF (FLXD.DE) provides exposure to the European market. Its primary objective is to invest in high-quality, large- and mid-cap stocks that generate high and consistent dividend income in developed European countries.

1. Fees : Expense ratio at 0.25%
2. Average annual return since inception : 6.51%
3. Assets Under Management : $100 Million as of 06.02.2025
4. Dividend yield: 3.27% (Quarterly Distributions)

Europe Dividend ETF No.5

Finally, we have the iShares MSCI Europe Quality Dividend ESG UCITS ETF (QDVX). Its primary objective is to invest in a portfolio of equity securities that, whenever possible, consists of the constituent securities of the MSCI Europe High Dividend Yield ESG Reduced Carbon Target Select Index.

1. Fees : Expense ratio at 0.28%
2. Average annual return since inception : 7.37%
3. Assets Under Management : $924.5 Million as of 07.02.2025
4. Dividend yield: 2.95% (Semi-annually Distributions)

That’s it for my five dividend ETF picks for 2025. Remember, this list is only a starting point—always conduct your own research before hitting the “buy” button.

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