In this article, we will be taking a look at 10 high yield dividend ETFs to buy now.
Exchange-traded funds, or ETFs, are securities that track indexes, sectors, commodities, or other assets, but are actively sold and traded on a stock exchange like regular stocks. These funds are among the best investment options available to investors, especially those looking to benefit from models similar to mutual funds, while also getting the ease of investing in regular stocks like AT&T Inc. (NYSE: T), Johnson & Johnson (NYSE: JNJ), Target Corporation (NYSE: TGT), and Medtronic plc (NYSE: MDT). Exchange-traded funds are continuing to gain momentum and popularity among investor circles to date, making them viable investment options for those interested in 2021.
In light of the above, the global exchange-traded fund industry has steadily been growing larger, with the New York Stock Exchange estimating that by the end of the second quarter of 2021, there were about 2,567 exchange-traded funds listed in the US, controlling about $6.58 trillion in assets in US markets. The average daily value of US ETF transactions as of June 30th, 2021, was recorded to stand at $129.58 billion as well, while the average daily volume of shares of ETFs traded was reportedly 1.52 billion. The rapid growth of the ETF industry was highlighted during the first quarter of 2021, when 127 new active exchange-traded funds were launched and 24 new issuers entered the market. This development brought the total number of firms with active strategies up to about 117, which is reportedly double the number of issuers in the market in 2019. Finally, as the industry continues to grow, it has also been noted that cash flow in exchange-traded funds so far in 2021 has also been growing at unprecedented rates. The recorded cash flow in the second quarter of 2021 alone reached the $23.64 billion mark, with year-to-date cash flow by the end of the second quarter standing at $58.5 billion, almost reaching the 2020 full-year total figure of $60 billion already.
According to a Reuters report from the end of this July, it has been mentioned that exchange-traded funds are rapidly gaining popularity among investor circles as well. This development, coming in close pursuit of the incredibly positive growth and performance of these funds so far in 2021, is hardly surprising. Refinitiv data has thus estimated that Equity ETFs alone managed to bring in about $490.65 billion of 76% of the total inflows, whereas bond ETFs also performed impressively, bringing in $136.6 billion as well.
Investing has become difficult by the day, even for the smart money. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
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Without further ado, let’s take a look at the 10 high yield dividend ETFs to buy now.
Our Methodology
We have selected dividend ETFs with yields of over 3%. For each ETF we have mentioned its yield, ranking them from the lowest to the highest dividend yield. We have also compared each ETF’s performance compared to the S&P 500 in the past year.
High Yield Dividend ETFs to Buy Now
10. iShares Core High Dividend ETF (NYSE: HDV)
Dividend Yield: 3.55%
iShares Core High Dividend ETF (NYSE: HDV), an ETF launched and managed by BlackRock, Inc., invests in public equity markets in America and stocks of companies working in diversified sectors. The fund ranks 10th on our list of high yield dividend ETFs to buy now.
Compared to the S&P 500, the price return for iShares Core High Dividend ETF (NYSE: HDV) in the past year was 15.27%, versus the S&P 500’s 29.41% return. The total return for iShares Core High Dividend ETF (NYSE: HDV) was 19.79%, compared to the S&P 500’s 10.4% return. iShares Core High Dividend ETF (NYSE: HDV) has also gained 7.36% in the past 6 months and 12.20% year to date.
Like AT&T Inc. (NYSE: T), Johnson & Johnson (NYSE: JNJ), Target Corporation (NYSE: TGT), and Medtronic plc (NYSE: MDT), iShares Core High Dividend ETF (NYSE: HDV) is a good option to invest in.
9. Invesco S&P 500 High Dividend Low Volatility ETF (NYSE: SPHD)
Dividend Yield: 3.72%
Invesco S&P 500 High Dividend Low Volatility ETF (NYSE: SPHD) is a fund launched and managed by Invesco Capital Management LLC, which invests in US public equity markets and stocks of companies across diversified sectors, including large-cap stocks and dividend stocks. The fund ranks 9th on our list of high yield dividend ETFs to buy now.
Compared to the S&P 500, the price return for Invesco S&P 500 High Dividend Low Volatility ETF (NYSE: SPHD) in the past year was 28.94%, versus the S&P 500’s 29.41% return. The total return for Invesco S&P 500 High Dividend Low Volatility ETF (NYSE: SPHD) was 34.41%, compared to the S&P 500’s 10.4% return. Invesco S&P 500 High Dividend Low Volatility ETF (NYSE: SPHD) has also gained 10.33% in the past 6 months and 19.11% year to date.
Like AT&T Inc. (NYSE: T), Johnson & Johnson (NYSE: JNJ), Target Corporation (NYSE: TGT), and Medtronic plc (NYSE: MDT), Invesco S&P 500 High Dividend Low Volatility ETF (NYSE: SPHD) is a good option to invest in for dividends.
8. iShares International Select Dividend ETF (BATS: IDV)
Dividend Yield: 4.33%
iShares International Select Dividend ETF (BATS: IDV) invests in public equity markets of global-ex US region. The fund invests in companies across diversified sectors and growth and value stocks with diversified market capitalizations. It ranks 8th on our list of high yield dividend ETFs to buy now.
Compared to the S&P 500, the price return for iShares International Select Dividend ETF (BATS: IDV) in the past year was 23.34%, versus the S&P 500’s 29.41% return. The total return for iShares International Select Dividend ETF (BATS: IDV) was 29.24%, compared to the S&P 500’s 10.4% return. iShares International Select Dividend ETF (BATS: IDV) has also gained 3.35% in the past 6 months and 8.72% year to date.
Like AT&T Inc. (NYSE: T), Johnson & Johnson (NYSE: JNJ), Target Corporation (NYSE: TGT), and Medtronic plc (NYSE: MDT), iShares International Select Dividend ETF (BATS: IDV) is a good option to invest in for dividends.
7. Invesco S&P Ultra Dividend Revenue ETF (NYSE: RDIV)
Dividend Yield: 4.67%
Invesco S&P Ultra Dividend Revenue ETF (NYSE: RDIV) invests in US public equity markets and growth and value stocks with diverse ranges of market capitalization. The fund also invests in dividend stocks, and ranks 7th on our list of high yield dividend ETFs to buy now.
Compared to the S&P 500, the price return for Invesco S&P Ultra Dividend Revenue ETF (NYSE: RDIV) in the past year was 42.5%, versus the S&P 500’s 29.41% return. The total return for Invesco S&P Ultra Dividend Revenue ETF (NYSE: RDIV) was 50.61%, compared to the S&P 500’s 10.4% return. Invesco S&P Ultra Dividend Revenue ETF (NYSE: RDIV) has also gained 4.72% in the past 6 months and 23% year to date.
Like AT&T Inc. (NYSE: T), Johnson & Johnson (NYSE: JNJ), Target Corporation (NYSE: TGT), and Medtronic plc (NYSE: MDT), Invesco S&P Ultra Dividend Revenue ETF (NYSE: RDIV) is a good option to invest in for dividends.
6. SPDR S&P Global Dividend ETF (NYSE: WDIV)
Dividend Yield: 4.74%
SPDR S&P Global Dividend ETF (NYSE: WDIV), an ETF launched by State Street Global Advisors, Inc., and managed by SSGA Funds Management, Inc., is next on our list of high yield dividend ETFs to buy now. The fund invests in public equity markets globally, and ranks 6th on our list.
Compared to the S&P 500, the price return for SPDR S&P Global Dividend ETF (NYSE: WDIV) in the past year was 21.27%, versus the S&P 500’s 29.41% return. The total return for SPDR S&P Global Dividend ETF (NYSE: WDIV) was 27.73%, compared to the S&P 500’s 10.4% return. SPDR S&P Global Dividend ETF (NYSE: WDIV) has also gained 6.42% in the past 6 months and 12.99% year to date.
Like AT&T Inc. (NYSE: T), Johnson & Johnson (NYSE: JNJ), Target Corporation (NYSE: TGT), and Medtronic plc (NYSE: MDT), SPDR S&P Global Dividend ETF (NYSE: WDIV) is a good option to invest in.
5. SPDR Series Trust – SPDR Portfolio S&P 500 High Dividend ETF (NYSE: SPYD)
Dividend Yield: 4.72%
SPDR Series Trust – SPDR Portfolio S&P 500 High Dividend ETF (NYSE: SPYD) is launched and managed by State Street Global Advisors, Inc. The fund invests in public equity markets in America and ranks 5th on our list of high yield dividend ETFs to buy now.
Compared to the S&P 500, the price return for SPDR Series Trust – SPDR Portfolio S&P 500 High Dividend ETF (NYSE: SPYD) in the past year was 40.83%, versus the S&P 500’s 29.41% return. The total return for SPDR Series Trust – SPDR Portfolio S&P 500 High Dividend ETF (NYSE: SPYD) was 48.58%, compared to the S&P 500’s 10.4% return. SPDR Series Trust – SPDR Portfolio S&P 500 High Dividend ETF (NYSE: SPYD) has also gained 7.12% in the past 6 months and 24.41% year to date.
4. iShares Emerging Markets Dividend ETF (NYSE: DVYE)
Dividend Yield: 6.34%
iShares Emerging Markets Dividend ETF (NYSE: DVYE), a fund launched by BlackRock, Inc., is next on our list of high yield dividend ETFs to buy now. It is managed by BlackRock Fund Advisors and invests in public markets. The fund ranks 4th on our list.
Compared to the S&P 500, the price return for iShares Emerging Markets Dividend ETF (NYSE: DVYE) in the past year was 22.77%, versus the S&P 500’s 29.41% return. The total return for iShares Emerging Markets Dividend ETF (NYSE: DVYE) was 31.23%, compared to the S&P 500’s 10.4% return. iShares Emerging Markets Dividend ETF (NYSE: DVYE) has also gained 0.54% in the past 6 months and 5.49% year to date.
3. Invesco KBW High Dividend Yield Financial ETF (NASDAQ: KBWD)
Dividend Yield: 6.74%
Invesco KBW High Dividend Yield Financial ETF (NASDAQ: KBWD) was launched and is managed by Invesco Capital Management LLC. The fund invests in US public equity markets and stocks in the financial sector. It ranks 3rd on our list of high yield dividend ETFs to buy now.
Compared to the S&P 500, the price return for Invesco KBW High Dividend Yield Financial ETF (NASDAQ: KBWD) in the past year was 50.98%, versus the S&P 500’s 29.41% return. The total return for Invesco KBW High Dividend Yield Financial ETF (NASDAQ: KBWD) was 63.37%, compared to the S&P 500’s 10.4% return. Invesco KBW High Dividend Yield Financial ETF (NASDAQ: KBWD) has also gained 10.15% in the past 6 months and 27.35% year to date.
2. Global X SuperDividend ETF (NYSE: SDIV)
Dividend Yield: 7.25%
Global X SuperDividend ETF (NYSE: SDIV) is an exchange-traded fund that was launched by Global X Management Company LLC. The ETF invests in public equity markets and ranks 2nd on our list of high yield dividend ETFs to buy now.
When compared to the S&P 500, the price return for Global X SuperDividend ETF (NYSE: SDIV) in the past year was up 19.38% versus the former’s 29.41% gain, while the total return for the ETF was 28.85%, compared to the S&P 500’s 10.4% return. Global X SuperDividend ETF (NYSE: SDIV) has gained 5.33% year to date and 20.19% in the past year.
1. Nationwide Risk-Managed Income ETF (NYSE: NUSI)
Dividend Yield: 7.43%
Nationwide Risk-Managed Income ETF (NYSE: NUSI), an ETF launched by ETF Series Solutions, is next and last on our list of high yield dividend ETFs to buy now. It is co-managed by Nationwide Fund Advisors, Harvest Volatility Management, LLC, and invests in public equity markets of a global region. It ranks 1st on our list.
Compared to the S&P 500, the price return for Nationwide Risk-Managed Income ETF (NYSE: NUSI) in the past year was 1.52%, versus the S&P 500’s 29.41% return. The total return for Nationwide Risk-Managed Income ETF (NYSE: NUSI) was 9.76%, compared to the S&P 500’s 10.4% return. Nationwide Risk-Managed Income ETF (NYSE: NUSI) has also gained 4.08% in the past 6 months and 4.65% year to date.
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Disclosure: None. 10 High Yield Dividend ETFs to Buy Now is originally published on Insider Monkey.
