Seeking High Dividend Yields – ETFs

I like investing in dividend ETFs for a portion of my portfolio to provide “passive income”.

Here are the things I look for:

Higher yields with lower management fees and a consistent pay out. How does their recent history look for dividend payouts? Are they inconsistent or do they have wide ranges? For dividend income, I prefer consistency as you are usually foregoing some growth appreciation. It is always a trade-off. There are some that offer a mix of both. I like to have some index ETF dividend as well as we know historically over the long term indexes go up.

Index ETFs: VOO is great but there are some that provide better yields and div/fee

My favorite is SPYD – S&P 500 High Dividend Yield 4.79% Yield with .07% Fee

Here is a list of ETFs that have higher yields with lower management fees:

The TIPS ETFs (Yield & Fee):

SCHP 7.05% .04%

TIP 6.83% .19%

STIP 6% .03%

High Yield Bond ETFs & related:

USHY 5.88% .15%

HYLB 5.35% .15%

FALN 4.92% .25%

VCLT 4.12% .04%

LQD 3.17% .14%

USIG 3.02% .04%

IGIB 2.92% .06%

VCIT 2.91% .04%

Foreign & Emerging Market ETFs:

BBEU 4.33% .09%

VWO 3.76% .08%

SPEM 3.08% .11%

SPDW 2.87% .04%

Real Estate ETFs (not REITs):

VNQ 3.66% .12%

XLRE 3.47% .1%

Mortgage Backed Bonds ETFs:

SPMB 2.87% .05%

There are plenty more. I am listing the higher yielding ones in each group with the lowest fees. Therefore this isn’t all inclusive but a great starting point in my opinion. As you can see, there are many out there that present opportunities. There are always opportunities!