2 Top High-Yielding Dividend ETFs to Buy for 2026

Investing in high-dividend yield exchange-traded funds (ETFs) can provide investors with a steady income stream and potentially lower portfolio volatility, which is particularly attractive for long-term investors or those nearing retirement. However, it is crucial to balance your desire for a high yield with a focus on quality underlying fundamentals to avoid value traps. Quality high-yield ETFs can provide regular passive income, which can be invaluable for investors looking to compound their wealth by reinvesting dividends. In addition, dividend-paying companies contained in these ETFs are typically mature and financially stable. If you're looking for high-dividend ETFs to invest in right now, here are two names to consider for your portfolio. Image source: Getty Images. 1. SPDR Portfolio S&P 500 High Dividend ETF The SPDR Portfolio S&P 500 High Dividend ETF ( SPYD +0.14%) tracks the performance of the top 80 high-dividend-yielding companies within the S&P 500 . This passively managed fund trades for about $43 per share, offers a higher dividend yield than the broader S&P 500 index (around 1.2%), and has significant sector concentration in areas including real estate, utilities, and financials. The ETF's trailing 12-month dividend yield is approximately 4.5%. It has a very low expense ratio of 0.07%, which means that a $10,000 investment in this ETF would cost just $7 a year in fees. The fund's index selects the 80 highest-yielding stocks from the S&P 500 and weights them equally. The index is rebalanced semi-annually, and the fund currently has over $7.3 billion in net assets under management . The SPDR Portfolio S&P 500 High Dividend ETF's top sector exposure by weighting includes: real estate (21.4%), utilities (13.4%), financials (17.3%), and consumer staples (16.3%). NYSEMKT: SPYD Key Data Points As of late 2025, the ETF has minimal exposure of less than 2% to the tech sector, an industry that has driven broad market gains in the last few decades. Historically speaking, the ETF's capital appreciation has remained much lower than the broader market: it's delivered a total return of about 130% since its inception in 2015, compared to the more than 300% total return of the S&P 500 in the same period. The fund's top holdings include CVS Health , Viatris , Invesco , Merck , Ford , AbbVie , and US Bancorp . One caveat to be aware of: The SPDR Portfolio S&P 500 High Dividend ETF's dividends are taxed as ordinary income rather than capital gains because the fund holds significant investments in various real estate investment trusts ( REITs ), which are pass-through entities whose distributions have a different tax structure. If you're an investor with a more conservative risk tolerance looking to invest in the highest-yielding companies within the vetted S&P 500 universe , the SPDR Portfolio S&P 500 High Dividend ETF could be a low-cost, no-brainer option to put cash into a basket of great businesses that can help drive your portfolio returns in the years ahead. 2. Schwab US Dividend Equity ETF Schwab US Dividend Equity ETF ( SCHD 0.07%)...

Preview: ~500 words