Top 100 Highest Dividend Yield ETFs (2024)

FAQs

What is the best high yield dividend ETF? ›

KBWD actually rates as the most volatile dividend ETF in the marketplace and the fund's 12% yield hints at that. Its strategy sounds simple - produce a portfolio of the highest yielding stocks within the financial sector - but what falls within that definition is what makes it risky.

SPYI Outperforms Within Equity Income Category

JEPI brought in nearly $13 billion in net flows in 2023 in another monster year for options strategies. Since its launch in May 2020, the fund dominated the equity income category by AUM in 2022 and 2023.

It's easy to explain the popularity of high-dividend ETFs: High dividends equal high yields and a reliable cash flow. People who have current income as a primary investment objective are especially attracted to exchange-traded funds, or ETFs, that pay superior income, but dividends can be a boon to any investor.

Is there a dividend king ETF? There is no “king” of dividend ETFs, per se. To qualify as a dividend king, a stock must have increased its dividends consecutively for at least the past 50 years.

Experts agree that for most personal investors, a portfolio comprising 5 to 10 ETFs is perfect in terms of diversification. But the number of ETFs is not what you should be looking at.

Is JEPI a Good Investment? JEPI can be a good investment for more experienced, risk-averse investors who are looking for an ETF that can provide low-volatility, stocklike returns with superior yields. However, JEPI may not be for beginners or long-term investors.

One reason why JEPI is not a great choice for retirees is that its 0.35% expense ratio is rather high compared to many other passive income funds. For example, SCHD's expense ratio is only 0.06%. While over a single year, 0.29% does not seem like very much, throughout a long period that amount can add up.

Should I buy JEPI or SCHD? ›

SCHD - Volatility Comparison. The current volatility for JPMorgan Equity Premium Income ETF (JEPI) is 2.66%, while Schwab US Dividend Equity ETF (SCHD) has a volatility of 3.61%. This indicates that JEPI experiences smaller price fluctuations and is considered to be less risky than SCHD based on this measure.

Summary. JEPI is one of the best run-covered call ETFs I've ever seen. It's designed for 6.5% monthly yield, 8% returns, and 35% lower volatility than the market.

Cons. No guarantee of future dividends. Stock price declines may offset yield. Dividends are taxed in the year they are distributed to shareholders.

Dividend ETFs or Dividend Stocks: Which Is Better? Dividend ETFs can be a good option for investors looking for a low-cost, diversified and reliable source of income from their investments. Dividend stocks may be a better option for investors who prefer to choose their own investments.

Vanguard High Dividend Yield ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VYM is an outstanding option for investors seeking exposure to the Style Box - Large Cap Value segment of the market.