Dividends

My ETF Dividend Experiment

At MarsBlock Money Lab, I’m exploring ETF dividend investing in the UK to see how much passive income I can generate. InvestEngine caught my eye as a commission-free platform for ETF investing, perfect for creating an ETF dividend portfolio. I opened my InvestEngine account on April 6, 2025, and began my ETF dividend journey with £100, targeting ETFs that deliver consistent payouts. My goal? Build a portfolio that generates growing ETF dividend income with just an hour or two of setup each month. Here’s where I’m at so far:

• Portfolio Setup: I’m investing £100/month, split across three ETFs:
  • VHYL (Vanguard FTSE All-World High Dividend Yield UCITS ETF): £50/month, yielding ~3%.
  • VUSA (Vanguard S&P 500 UCITS ETF): £30/month, yielding ~1.5%.
  • JEPG (JPMorgan Global Equity Premium Income UCITS ETF): £20/month, yielding ~7%.
• Expected Dividend Income (Year 1): After 12 months (£1,200 invested), I’m projecting £40.20/year in dividends (~£3.35/month), based on the yields above. That’s a small start, but I’m in it for the long game—compounding will do the heavy lifting over time.
• Time Spent: About 30 minutes to set up my portfolio and schedule automatic investments. Now it’s mostly hands-off, with a quick check-in each month to monitor progress.

InvestEngine’s commission-free trading and focus on ETFs make it a no-brainer for my ETF dividend experiment. Note that InvestEngine only supports ETFs, so this experiment is all about ETF dividends—if you’re looking to add individual dividend stocks, you’ll need a different platform. I’m excited to see how my income grows over the next 6-12 months as I continue to reinvest and build my portfolio.

How It Works

InvestEngine simplifies ETF dividend investing in the UK, even for beginners. Here’s how I’m using it to generate ETF dividend income:

• Sign Up: Join InvestEngine using my affiliate link. InvestEngine is currently offering new clients a Referral Bonus of £20 to £100 for a General Account or up to £200 for a Business Account when you sign up with my link. Note: To claim the bonus, you’ll need to deposit £100 and stay invested for 12 months. Best for UK investors; some features may vary in other regions.
• Learn: Use InvestEngine’s DIY Portfolio tool to pick dividend ETFs. I chose VHYL for global dividends, VUSA for stable U.S. exposure, and JEPG for high income.
• Invest: Set up automatic investments—I’m putting in £100/month, but you can start with as little as £10. InvestEngine supports fractional shares, so every penny goes toward earning ETF dividends.
• Profit: Collect ETF dividends monthly or quarterly (depending on the ETF) and reinvest them to grow your income. InvestEngine handles the reinvestment automatically, making your ETF dividend stream truly passive.

Pros and Cons

• Pros: Commission-free ETF trading, beginner-friendly, automatic reinvestment, and a growing ETF dividend stream with minimal effort.
• Cons: InvestEngine only offers ETFs (no individual stocks like Coca-Cola), and there’s currency risk from international ETFs (USD/GBP fluctuations). Also, ETF dividends start small—it’s a long-term play.

Try It Yourself

Ready to build your own ETF dividend portfolio? Join InvestEngine via my affiliate link and claim a Referral Bonus of £20 to £100 to get started. It’s a MarsBlock Money Lab favorite for passive dividend income with a low time commitment!

Latest Updates

This experiment is just getting started! I’ll be updating this page regularly with my portfolio’s progress—dividend payments, growth, and any tweaks I make along the way. Want to follow my journey? Follow me on X @MarsBlockLab or check back here and read my latest blog post for the full breakdown—no fluff, just lab-tested numbers!