Top 5 High-Yield ETFs for Safe Income Investing

The Vanguard Real Estate ETF (VNQ) presents investors with a compelling opportunity in the real estate sector, featuring an exceptionally low expense ratio of 0.13% and a current yield of approximately 3.7%. With 154 holdings primarily consisting of real estate investment trusts (REITs), this ETF offers broad diversification across the property market. The timing appears particularly favorable given the anticipated recovery in commercial real estate, with Deloitte’s 2025 Commercial Real Estate Outlook pointing to signs of market improvement and even suggesting a potential generational opportunity.

VNQ’s portfolio includes industry leaders such as Welltower, Prologis, American Tower Corp., Equinix, Digital Realty Trust, and Simon Property Group, providing exposure to diverse real estate segments from healthcare facilities to data centers and shopping malls. The ETF has demonstrated strong performance momentum, recovering from its April low of approximately $76 to reach $90.81, with analysts eyeing a retest of the $95 level last seen in early December 2024. Recent dividend payments of just over 87 cents in September and 86 cents in June further underscore its income-generating capabilities.

For investors prioritizing reliability in dividend payments, the ProShares S&P 500 Dividend Aristocrats ETF (NOBL) offers exposure to companies with exceptional track records. This ETF invests in 69 S&P 500 constituents that have increased dividends for at least 25 consecutive years, representing some of the most stable and profitable companies globally. According to ProShares, these companies typically exhibit stable earnings, solid fundamentals, and strong histories of profitability and growth, making them resilient even during challenging economic periods.

With a 2.54% yield and an expense ratio of 0.35%, NOBL provides access to blue-chip companies including AbbVie, Lowe’s, Archer Daniels Midland, and Pentair. The ETF has shown impressive technical strength, rebounding from its April low of around $89 to reach approximately $106 before settling at $102.56, with near-term potential to retest the $106 level. Recent dividend distributions of just over 54 cents in September and 55 cents in July demonstrate consistent income generation for investors seeking reliable cash flow.

Complementing the aristocrats approach, the Schwab US Dividend Equity ETF (SCHD) offers broad exposure to quality dividend payers with an ultra-low expense ratio of 0.06%. Tracking the Dow Jones U.S. Dividend Index, this ETF yields an attractive 3.85% while holding 103 dividend stocks across various sectors. Its portfolio includes established names such as Amgen, AbbVie, Home Depot, Cisco Systems, Broadcom, Chevron, UPS, and Coca-Cola, providing diversified income exposure.

For investors seeking elevated income potential, the Invesco KBW Premium Yield Equity REIT ETF (KBWY) stands out with its impressive 8.82% yield. This specialized ETF invests at least 90% of its assets in small and mid-cap equity REITs trading in the U.S., focusing on companies with respectable yields. Its holdings include Global Net Lease (GNL), Service Properties Trust (SVC), Global Medical REIT (GMRE), Gladstone Commercial (GOOD), EPR Properties (EPR), and Omega Healthcare (OHI), offering concentrated exposure to higher-yielding real estate opportunities.

Technically, KBWY has demonstrated strong momentum, recovering from a brief pullback to $13.50 to reach $15.81, with analysts targeting a move toward $19 per share. The ETF’s consistent dividend payments, including distributions of just over 12 cents in both September and August, reinforce its high-income characteristics for yield-focused investors comfortable with the specialized REIT focus.

Similarly, the Global X Super Dividend U.S. ETF (DIV) concentrates on high-yield opportunities by investing in 50 of the highest dividend-yielding stocks in the U.S. market. With a substantial 7.32% yield, this ETF includes prominent holdings such as Spire (SR), Kinder Morgan (KMI), Omega Healthcare (OHI), Philip Morris (PM), Duke Energy (DUK), AT&T (T), and Dominion Energy (D). Since bottoming at approximately $15.80 in April, DIV has rallied to $17.96, with technical analysis suggesting potential for a move toward $20 in the near term.

These five ETFs collectively represent diverse approaches to income generation, from the stability of dividend aristocrats to the high-yield potential of specialized REITs and dividend-focused strategies. Each offers distinct advantages in terms of yield, expense ratios, and sector exposure, allowing investors to tailor their income allocations according to risk tolerance and investment objectives. The consistent dividend payments across all funds, coupled with their technical recoveries from April lows, suggest both income stability and capital appreciation potential.

Investors should consider their individual risk profiles when evaluating these options, as higher-yielding ETFs like KBWY and DIV typically involve greater concentration in specific sectors or higher-risk holdings. However, for those seeking to navigate current market uncertainties while generating reliable income, these ETFs provide professionally managed exposure to income-generating assets with the liquidity and transparency of exchange-traded products.