Yields close to 5% too! A high-dividend ETF that can be expected to yield higher returns than deposits and has lower risk than individual stocks

It's not unreasonable for those who lament, “Even if you save money, you won't get any interest at all.”

Savings interest rates as of 2023/12 announced by domestic banks are 0.002% for major banks, and the maximum for internet banks is around 0.3%. In other words, the interest (before tax) obtained by depositing 10,000 yen in a Japanese bank for 1 year is 0.2 yen at major banks, and about 30 yen even at internet banks with good conditions.

If that's the case, why don't you consider investing in stocks even more? However, it is not a stock investment for individual companies where prices fluctuate drastically.ETFs (exchange-traded funds) linked to a large number of high-dividend stocksTherefore, the risk of price fluctuations can be far suppressed compared to investing in individual companies.

US stocks with high dividendsOf the ETFs incorporating many, it was the most expensive in 2023Dividend yield (ratio of dividend amount compared to investment amount)is4.65%That was it. If 10,000 yen was invested at the end of '22, a dividend of 465 yen (before tax) was obtained. What's more, the ETF price itself4.18% increaseTherefore, when combined with an increase of 418 yen in “principal,” a profit of 883 yen (before tax) was obtained.

That high yield ETF also has its name”S&P 500 High Dividend Equity ETF (SPYD)” represents the United States500 listed companiesAmong the S&P 500 I chose,80 companies with high dividend yieldsIt is an ETF linked to an index composed of. It incorporates 80 companies without bias, and stocks are replaced twice a year, so a certain amount of consideration has been given to risk diversification. What are dividendsOnce every 3 months (4 times a year)Yes, you can freely trade on the market just like regular stocks. Incidentally, the current price (as of 23/12) is just under 40 US dollars per unit, so you can buy it for a little over 5,000 yen.

Of course, since we invest in US dollars, there are risks due to exchange rate fluctuations and risk of principal split due to ETF price fluctuations. These risks can be diversified to some extent if you invest with the mindset of holding them over a long period of time, as if you were making a time deposit. The timing of ETF sales and exchange for Japanese yen (cash withdrawal in terms of deposits and savings accounts) is a good idea to check the ETF or exchange rate and do it when conditions are good.