The best ETF dividend funds

A dividend exchange-traded fund can be a great way to tap into a steady income stream. But what are the risks? Tim Bennett explains.

"Dividends are one of the few constants in the world of investing," says Hortense Bioy on Morningstar.com. Over the last decade they have made up just about all of the return from the FTSE 100 and since 1925 around 40% of the S&P 500.

One popular way to tap into a solid dividend income stream is via a dividend exchange-traded fund (ETF). The newest kids on this block are about to be launched by State Street with its UK and European Dividend Aristocrats ETFs. So what should investors watch out for?

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Tim graduated with a history degree from Cambridge University in 1989 and, after a year of travelling, joined the financial services firm Ernst and Young in 1990, qualifying as a chartered accountant in 1994.

He then moved into financial markets training, designing and running a variety of courses at graduate level and beyond for a range of organisations including the Securities and Investment Institute and UBS. He joined MoneyWeek in 2007.