Share This Article
There are many factors to consider when choosing an exchange-traded fund (ETF), but for income investors, one of the most important is yield.
The yield is the amount of income that an ETF generates from its investments, typically expressed as a percentage of the fund’s net asset value. While most ETFs don’t pay dividends, some do, and those that do tend to have higher yields than those that don’t.
Income-oriented ETFs can be a good way to boost the yield of your portfolio, but it’s important to remember that higher yields come with higher risks. Before investing in any ETF, be sure to do your homework and understand the risks involved.
Here are five ETFs with high yields:
1. iShares Core High Dividend ETF (HDV)
HDV is a broad-based ETF that invests in a mix of large- and mid-cap U.S. stocks that have high dividend yields. The fund currently has a yield of 3.8%.
2. SPDR S&P International Dividend ETF (DWX)
DWX is an international ETF that invests in companies from developed and emerging markets outside the United States. The fund currently has a yield of 4.4%.
3. iShares International Select Dividend ETF (IDV)
IDV is another international ETF, but this one focuses on companies from developed markets outside the United States. The fund currently has a yield of 4.8%.
4. SPDR S&P Emerging Markets Dividend ETF (EDIV)
EDIV is an emerging markets ETF that invests in companies from countries such as Brazil, China, and India. The fund currently has a yield of 5.0%.
5. Global X SuperDividend ETF (SDIV)
SDIV is a global ETF that invests in companies from both developed and emerging markets. The fund currently has a yield of 6.2%.There are a few things to consider when looking for the highest yielding ETFs. The first is the type of ETF. For example, some ETFs are designed to track an index, while others are actively managed. The second is the expense ratio. The lower the expense ratio, the higher the potential return. The third is the distribution rate. This is the percentage of the fund’s assets that are distributed to shareholders each year. The higher the distribution rate, the higher the potential return.
The following are some of the highest yielding ETFs available:
1. iShares Core High Dividend ETF (HDV)
2. SPDR S&P Dividend ETF (SDY)
3. Vanguard Dividend Appreciation ETF (VIG)
4. iShares Select Dividend ETF (DVY)
5. SPDR Portfolio S&P 500 High Dividend ETF (SPYD)There are a few ways to measure yield, but for the purposes of this article we’ll focus on the 30-day SEC yield, which is a standardized measure of the yield of a bond or ETF.
The iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) has a yield of 3.89%.
The Vanguard Short-Term Corporate Bond ETF (VCSH) has a yield of 2.97%.
The iShares 1-3 Year Treasury Bond ETF (SHY) has a yield of 1.91%.
The iShares 7-10 Year Treasury Bond ETF (IEF) has a yield of 2.54%.
The SPDR Barclays High Yield Bond ETF (JNK) has a yield of 5.97%.
The iShares iBoxx $ High Yield Corporate Bond ETF (HYG) has a yield of 5.13%.There are a number of exchange traded funds (ETFs) that offer high yields. Some of the most popular high yield ETFs include the iShares iBoxx $ High Yield Corporate Bond ETF (HYG) and the SPDR Barclays High Yield Bond ETF (JNK). Both of these ETFs offer investors exposure to a basket of high yield corporate bonds.
Other popular high yield ETFs include the Vanguard High Dividend Yield Index ETF (VYM) and the iShares Select Dividend ETF (DVY). Both of these ETFs track indexes that are comprised of stocks of companies that have a history of paying high dividends.
Finally, the PowerShares S&P 500 High Dividend Low Volatility Portfolio (SPHD) is an ETF that tracks an index of 100 high dividend stocks that have low volatility. This ETF is a good choice for investors who are looking for both high yield and low volatility.
