5 High-Yield Dividend ETFs By YieldMax That Investors Are Talking About

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Investors love dividend stocks, and it's easy to see why. They provide a reliable income stream while offering the potential for capital appreciation. Some investors focus on total returns, while others prioritize passive income, or even a mix of both. For those looking for a hassle-free approach, dividend-focused ETFs are an excellent choice.

ETFs yielding dividends simplify the process by offering instant diversification, typically at a lower cost than actively managed funds. They are easy to buy and sell, and many are managed by well-known asset managers. If you're looking to test some dividend-generating stocks but can’t decide which one to invest in, here are five high-yield ETFs that are gaining investor interest—some of them ranking among the most searched names on Benzinga.

Also Read: YieldMax Rolls Out New ETF For Investors To Tap Into Carvana’s Rally And Generate Income

  • The YieldMax Ultra Option Income Strategy ETF ULTY is designed to maximize yield by implementing an options-based income strategy. This ETF invests in a diversified set of options contracts, aiming to generate high monthly income while managing risk exposure. It's an attractive pick for income-focused investors looking for steady payouts. The Distribution Rate, which represents the projected annual return based on the latest declared distribution, including option income and dividends, is 85.01%. The net expense ratio is 1.14%.
  • The YieldMax MSTR Option Income Strategy ETF MSTY provides exposure to MicroStrategy Inc. MSTR while implementing an options strategy to boost income. Given MicroStrategy's increasing involvement in Bitcoin holdings, this ETF is popular among investors seeking crypto-adjacent income opportunities. The ETF has a distribution rate of 98.03%, and an expense ratio of 0.99%.
  • The YieldMax Universe Fund of Option Income ETFs YMAX is a fund-of-funds that invests in a portfolio of high-yielding option income ETFs. This means investors get access to multiple high-income strategies in a single fund. Its distribution rate is 47.11% and it carries an expense ratio of 1.28%.
  • The YieldMax NVDA Option Income Strategy ETF NVDY is tailor-made for investors who want exposure to Nvidia NVDA while generating additional income through options. Nvidia has been a buzzing stock among tech investors, and this ETF allows them to benefit from both the company's growth potential and option-generated yield. The ETF has a distribution rate of 52.44% and carries an expense ratio of 1.01%.

For those who are bullish on Bitcoin but also want steady income, the YieldMax Bitcoin Option Income Strategy ETF YBIT is an interesting choice. It uses options to generate yield while maintaining exposure to Bitcoin's price movements, making it an intriguing pick for crypto-savvy income investors. The distribution rate is 84.66% and the expense ratio is 0.99%.

Dividend ETFs provide an easy and cost-effective way to generate passive income while diversifying across multiple stocks or assets. The YieldMax family of ETFs, in particular, has captured significant attention due to their innovative options-based income strategies. With the growing popularity of dividend ETFs, these high-yield options are definitely worth keeping an eye on.

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