SPYD and VYM offer compelling yields and diversified exposure to high-income sectors, attracting investors seeking stable returns in a volatile environment. Both ETFs deliver above-average dividend payouts with strong track records.
- SPYD yields 5.2% with a focus on high-dividend S&P 500 companies
- VYM offers a 4.9% yield and has a 0.07% expense ratio
- Both ETFs are heavily weighted in financials and utilities sectors
- SPYD’s 3-year annual return is 7.4%
- VYM has over $80 billion in AUM and consistent dividend growth
- ETFs are gaining traction amid low bond yields and market uncertainty
Investors prioritizing income generation are turning to high-yield dividend ETFs as market volatility persists. Two funds—SPYD and VYM—have emerged as top contenders due to their consistent payouts and exposure to resilient sectors like financials and utilities. SPYD, the SPDR S&P 500 High Yield Dividend ETF, currently yields 5.2%, tracking a strategy that selects S&P 500 companies with high dividend yields and strong financial health. Its 3-year average annual return of 7.4% reflects a balance between income generation and capital appreciation. The fund holds a concentrated portfolio of 50 stocks, with significant allocations to financial institutions and energy firms. VYM, the Vanguard High Dividend Yield ETF, offers a 4.9% yield and has maintained a consistent dividend payout history since its inception in 2006. With over $80 billion in assets under management, it is one of the largest dividend-focused ETFs. Its portfolio is weighted toward utilities, consumer staples, and financials, providing defensive characteristics during market downturns. The fund’s expense ratio of just 0.07% enhances long-term income potential. Both ETFs have outperformed the broader market over the past 12 months, driven by strong cash flows and investor demand for income. Their performance is particularly notable in a rate environment where traditional fixed-income instruments offer limited returns.