Top High-Yield Dividend ETFs for Income Investors
Are you an income investor looking for ways to generate passive income? If so, exchange-traded funds (ETFs) could be just the ticket for you. ETFs offer diversification and the opportunity to earn reliable income through dividends. In this post, we’ll explore three high-yield dividend ETFs that could be perfect additions to your portfolio.
1. JPMorgan Equity Premium Income ETF (JEPI)
The JPMorgan Equity Premium Income ETF stands out with its impressive 30-day SEC yield of 7.52% and monthly distributions. This fund writes out-of-the-money S&P 500 index call options to boost its distributions. Despite being a newer fund launched in May 2020, it has delivered strong returns averaging over 12.2% annually since inception. With a reasonable annual expense ratio of 0.35%, this ETF could be a great choice for aggressive income investors.
2. SPDR Portfolio S&P 500 High Dividend ETF (SPYD)
If you prefer a more traditional approach, the SPDR Portfolio S&P 500 High Dividend ETF may be more appealing. This fund tracks the S&P 500 High Dividend Index, including the top 80 companies with the highest dividend yields in the S&P 500. With a 30-day SEC yield of 4.52% and low annual expense ratio of 0.07%, this ETF offers a solid option for income investors.
3. Invesco High Yield Equity Dividend Achievers ETF (PEY)
The Invesco High Yield Equity Dividend Achievers ETF focuses on dividend yield and consistency in dividend growth by tracking the NASDAQ US Dividend Achievers 50 Index. While it has a 30-day SEC yield of 4.29% and a growing distribution, its overall performance has been less impressive with an average annual return of 5.83% since inception. However, for income investors seeking growing passive income, this ETF could still be a good choice.
In conclusion, ETFs can be valuable tools for income investors looking to generate passive income. Consider adding these high-yield dividend ETFs to your portfolio for a potential boost to your income stream. Remember to conduct your own research and consult with a financial advisor before making any investment decisions.
