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There are a few different ways to measure yield for an exchange-traded fund (ETF), but one common metric is the 30-day SEC yield. This yield is calculated by taking the income earned by the fund over the past 30 days (after expenses) and dividing it by the fund’s current share price.
The ETFs with the highest 30-day SEC yields as of mid-July 2020 are listed below. Note that these funds focus on different asset classes and have different risk profiles, so investors should carefully consider their individual needs before investing.
1. iShares Mortgage Real Estate Capped ETF (REM)
2. SPDR Bloomberg Barclays High Yield Bond ETF (JNK)
3. iShares iBoxx $ High Yield Corporate Bond ETF (HYG)
4. First Trust Preferred Securities & Income ETF (FPE)
5. Invesco Senior Loan ETF (BKLN)
6. VanEck Vectors Fallen Angel High Yield Bond ETF (ANGL)
7. iShares International Preferred Stock ETF (IPFF)
8. SPDR Nuveen Barclays Capital Short Term High Yield Bond ETF (SJNK)
9. Global X SuperDividend U.S. ETF (DIV)
10. iShares 0-5 Year High Yield Corporate Bond ETF (SHYG)There are a number of different ways to measure yield, but for the purposes of this article we will focus on the yield as measured by the distribution rate. With that in mind, here are five of the highest yielding ETFs currently available:
1. iShares International High Yield Bond ETF (HYXU)
This ETF provides exposure to a portfolio of international high yield bonds with an average yield of 7.27%. The fund has an expense ratio of 0.50% and is currently comprised of over 400 different bonds from over 30 different countries.
2. SPDR Barclays High Yield Bond ETF (JNK)
This ETF provides exposure to a portfolio of high yield corporate bonds with an average yield of 6.64%. The fund has an expense ratio of 0.40% and is currently comprised of over 1,400 different bonds from over 400 different issuers.
3. iShares iBoxx $ High Yield Corporate Bond ETF (HYG)
This ETF provides exposure to a portfolio of investment grade corporate bonds with an average yield of 5.54%. The fund has an expense ratio of 0.49% and is currently comprised of over 2,200 different bonds from over 600 different issuers.
4. SPDR Nuveen Barclays Capital Short Term High Yield Bond ETF (SJNK)
This ETF provides exposure to a portfolio of short-term high yield corporate bonds with an average yield of 5.12%. The fund has an expense ratio of 0.40% and is currently comprised of over 400 different bonds from over 100 different issuers.
5. PIMCO 0-5 Year High Yield Corporate Bond Index ETF (HYS)
This ETF provides exposure to a portfolio of short to intermediate-term high yield corporate bonds with an average yield of 5.11%. The fund has an expense ratio of 0.55% and is currently comprised of over 400 different bonds from over 100 different issuers.There are a few different ways to measure yield for an ETF, but one common metric is the distribution yield, which looks at the ETF’s last 12 months of distributions and divides by the current price. This gives investors a good idea of the current yield, but it’s important to remember that yields can change over time.
With that in mind, here are five ETFs with high yields as of July 2020:
1. iShares Core High Dividend ETF (HDV)
HDV has a distribution yield of 4.4%, making it one of the higher-yielding ETFs on the market. The fund tracks the Morningstar US Dividend Yield Focus Index, which consists of 100 stocks of companies with sustainable dividend yields.
2. SPDR S&P Dividend ETF (SDY)
SDY has a distribution yield of 3.6%. The fund tracks the S&P High Yield Dividend Aristocrats Index, which includes stocks of companies that have increased their dividends for at least 25 consecutive years.
3. Vanguard Dividend Appreciation ETF (VIG)
VIG has a distribution yield of 2.2%. The fund tracks the Dividend Achievers Select Index, which is made up of companies that have increased their dividends for at least 10 consecutive years.
4. iShares Select Dividend ETF (DVY)
DVY has a distribution yield of 3.8%. The fund tracks the Dow Jones U.S. Select Dividend Index, which consists of 100 stocks of companies with high dividend yields.
5. SPDR S&P International Dividend ETF (DWX)
DWX has a distribution yield of 5.4%. The fund tracks the S&P Global Dividend Aristocrats Index, which includes stocks of companies that have increased their dividends for at least 25 consecutive years.
