3 Dividend ETFs That Yield Over 9% and Are Actually Worth Buying

"Dismissing every high-yield option means missing legitimate opportunities for meaningful passive income. A select group of exchange-traded funds has cracked the code on generating substantial yields without resorting to financial engineering that is destined to collapse. These ETFs have exposure to long-term tailwinds and can both outperform the market while giving you solid dividend yields without taking on excessive risk. They're also well-positioned ahead of more interest rate cuts later this year."

"It tracks the Cboe Russell 2000 Daily Covered Call Index before fees and expenses. You get a long position in the Russell 2000 Total Return Index and a short position in call options for additional income. ITWO is newer and is more well-positioned than many other covered call ETFs due to the number of stocks it has exposure to, plus the upside potential of Russell 2000 stocks."

High yields above about 9% often signal distressed securities, but some ETFs can deliver substantial, sustainable income without excessive risk. A select group of ETFs — including ITWO, TLTW, and MDST — targets durable income by using strategies such as covered-call overlays and buy-write structures while keeping exposure to long-term tailwinds. ITWO uses a covered-call approach on the Russell 2000 with a daily-reset mechanism and broad small-cap exposure to capture upside and generate option premium. These ETFs aim to provide meaningful passive income, potential market outperformance, and favorable positioning ahead of expected interest-rate cuts.

Read at 24/7 Wall St.