Investing in Vanguard ETFs is a good way to make passive income. They have low costs and many options. Here are three Vanguard ETFs that could make you over $1,700 in passive income each year if you invest $30,000 across them:
1.
Vanguard Emerging Markets Government Bond ETF (VWOB)
This ETF focuses on bonds from governments in emerging markets. It has a 30-day SEC yield of 6.42%. Investing $10,000 in it could generate about $642 in annual passive income.
The fund owns 740 bonds with an average maturity of 11.8 years. It includes holdings from countries like Argentina, Brazil, and Mexico. But emerging markets can be volatile, so this ETF has higher risk.
2. Vanguard Long-Term Corporate Bond ETF (VCLT)
This ETF mainly invests in corporate bonds with long-term maturities. Its 30-day SEC yield is 5.69%.
A $10,000 investment could make about $569 in annual income. The fund owns 2,954 corporate bonds with an average maturity of 22.4 years.
vanguard ETFs for income investors
It has risks like price changes and potential defaults. But its diverse portfolio of mostly high-quality bonds helps lower some risk. It hasn’t grown much though, with a 4.73% average annual return since 2009.
3. Vanguard Intermediate-Term Corporate Bond ETF (VCIT)
This is another good ETF for income investors. It has a 30-day SEC yield of 5.18%.
Investing $10,000 could generate around $518 in passive income per year. This ETF holds 2,238 corporate bonds with an average maturity of 7.3 years. Most are investment-grade, and many are A-rated.
It has some of the same risks as the Long-Term Corporate Bond ETF. But it’s been more resilient recently, with a 0.65% average annual return since 2020 and 4.22% since 2009. In total, investing $30,000 across these three Vanguard ETFs could yield about $1,729 in passive income annually.
The ETFs have attractive yields, but consider the risks too. Make sure they fit your financial goals and risk tolerance. Investing in a mix of ETFs like these can be a smart way to generate steady passive income.
