Why IDV Is One of My Favorite Income-Producing ETFs Right Now
In a market where the spotlight is always on the next tech darling or meme stock, I’m keeping my focus on one of the most reliable ways to build wealth: consistent, income-producing investments.
It’s not the flashiest strategy. It rarely makes front-page news. But year after year, it delivers.
And right now, one of my favorite examples is the iShares International Select Dividend ETF (IDV), a standout in my Income Portfolio.
Since January 2024, IDV has delivered a total return that’s 3 percentage points higher than the market benchmark, SPY.
In a time when most investors are simply trying to keep pace with the S&P 500, IDV has quietly outperformed, rewarding patient shareholders with both strong price appreciation and a generous income stream.
But it’s not just about the numbers. Here’s why owning an income-producing ETF like IDV is so powerful.
Advantages of IDV (vs. Individual Stocks)
Diversification: With a single purchase, you own a slice of dozens of international dividend-paying companies. This instantly lowers your risk compared to betting on just one or two stocks. If one company stumbles, the impact on your portfolio is minimal.
Lower Volatility: ETFs like IDV tend to be less volatile than individual stocks. Your investment won’t swing as wildly, and your income stream is steadier, which is especially valuable in unpredictable markets.
Cost Efficiency: ETFs generally come with much lower expense ratios than actively managed funds, and buying a basket of stocks individually would rack up significant trading costs. IDV’s expense ratio is just 0.49%.
Liquidity and Flexibility: ETFs trade throughout the day like stocks, so you can buy or sell whenever the market is open. You also have the flexibility to reinvest dividends or take them as cash.
Not only that, IDV currently offers a robust dividend yield (over 5%), with distributions paid quarterly.
That means you’re getting a steady stream of income, which can be reinvested to buy more shares — creating a compounding effect that grows your future payouts even faster.
Bottom Line
You don’t need to predict every market twist and turn. If you want to build real wealth with less stress, owning a well-constructed, income-producing ETF like IDV is one of the best places to start.
It gives you broad international exposure, a healthy yield, and the peace of mind that comes from a diversified, professionally managed portfolio.
— Nate Tucci
P.S. IDV is just one of the income-generating ETFs I hold in my Dividends Forever portfolio. Explore the full list and see how we’re using steady income to stay ahead — no matter what the market throws at us.
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