3 High-Yield ETFs Offering Over 4% Yields

"The SPDR Portfolio S&P 500 High Dividend ETF (NYSEARCA:SPYD) invests in 80 high dividend-yielding companies and tracks the performance of the S&P 500 High Dividend Index. Since it holds limited stocks, you get to own the best of the industry. It aims to provide dividend income and the potential for capital appreciation. The ETF has a yield of 4.57% and an expense ratio of 0.07%. Besides the quarterly dividends, the fund has generated a 1-year return of 4.67% and a 3-year return of 7.85%."

"SPYD isn't solely focused on tech. Instead, it invests only 0.94% in tech. The fund has the highest allocation to the real estate sector (21.05%), followed by financials (17.08%) and consumer staples (16.17%). Its top holdings include Viatris Inc., Ford Motor Company, CVS Health Corporation, Invesco Limited, Merck & Co., and Citizens Financial Group. No stock has a weightage higher than 2%. The ETF rebalances semi-annually, ensuring the top dividend payers from the S&P 500 are included in it."

Earnings season, steady Fed rates, and a record S&P 500 coexist with potential upside from big tech, but concentrated tech buying carries risk. Exchange-traded funds offer diversified exposure, lower single-stock risk, and steady income generation. Three ETFs with yields above 4% are identified as alternatives to individual stock picking. The SPDR Portfolio S&P 500 High Dividend ETF (SPYD) holds 80 high-dividend S&P 500 names, yields 4.57%, has a 0.07% expense ratio, and posted one- and three-year returns of 4.67% and 7.85%. SPYD is weighted to real estate, financials, and consumer staples and rebalances semiannually. Another fund cited yields 7.96%.

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