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Passive income has become increasingly popular among investors seeking to generate a steady cash flow without the need for active management. One of the most effective ways to achieve this is through high-yield exchange-traded funds (ETFs). These investment vehicles offer exposure to a diversified portfolio of income-generating assets, such as dividend-paying stocks and real estate investment trusts (REITs), while providing the convenience and liquidity of an exchange-traded product.
Below, we'll look at three reliable high-yield ETFs that can help put your income investments on autopilot.
iShares International Select Dividend ETF (IDV)
The iShares International Select Dividend ETF (IDV) is an excellent choice for investors seeking exposure to high-dividend-paying companies outside the United States. The fund invests at least 80% of its assets in the component securities of the underlying index, which measures the performance of 100 high-dividend-paying companies in the EPAC (Europe, the Pacific, Asia, and Canada) region.
With net assets of $4.07 billion and a yield of 6.63% as of May 7, 2024, IDV offers investors a compelling opportunity to diversify their income streams geographically while tapping into the potential for higher yields offered by international markets.
View the iShares International Select Dividend ETF quote page for more details
Vanguard Real Estate ETF (VNQ)
Real estate has long been a favorite among income investors, and the Vanguard Real Estate ETF (VNQ) provides a convenient way to gain exposure to this asset class. The fund seeks to track the performance of the MSCI US Investable Market Real Estate 25/50 Index, which includes a diverse range of REITs and other real estate-related securities.
VNQ boasts an impressive $61.9 billion in net assets and offers a yield of 4.34% as of May 7, 2024. By investing in VNQ, investors can benefit from the potential for stable income generated by real estate assets while enjoying the liquidity and diversification benefits of an ETF.
View the Vanguard Real Estate ETF quote page for more details
SPDR Portfolio S&P 500 High Dividend ETF (SPYD)
For investors seeking exposure to high-dividend-yielding companies within the S&P 500 Index, the SPDR Portfolio S&P 500 High Dividend ETF (SPYD) is an attractive option. The fund aims to track the performance of the S&P 500 High Dividend Index, which comprises 80 high-dividend-yielding companies within the broader S&P 500 Index.
With net assets of $6.69 billion and a yield of 4.61% as of May 7, 2024, SPYD offers investors a focused approach to dividend investing within the large-cap U.S. equity market. By holding a concentrated portfolio of high-dividend-paying stocks, SPYD aims to deliver a reliable income stream while maintaining exposure to the growth potential of large-cap U.S. companies.
View the PDR Portfolio S&P 500 High Dividend ETF quote page for more details
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