"If 2025 has taught investors anything about investing, it's that the markets have a mind of their own. Even when the bulls appear to dominate, the bears have had the fortitude to wrestle back control, leaving the markets in flux and investors scrambling to keep up. While perks like 2026 COLA increases can help, high yield ETFs could take you further ahead."
"For 2026, the Social Security Administration is penciling in just a 2.8% COLA, based on the change in the CPI-W between the third quarter of 2024 and the third quarter of 2025. Meanwhile, inflation continues to rise at a faster clip of around 3%. Retirees are looking at a modest bump that may barely keep pace with price increases on the most basic of items, which is precisely why many income-focused investors are turning to high-yield ETFs to do the heavy lifting instead."
Market volatility in 2025 left bulls and bears alternating control and investors struggling to adapt. The Social Security Administration projects a 2.8% COLA for 2026 based on CPI-W changes between Q3 2024 and Q3 2025. Inflation remains around 3%, creating a potential real-income shortfall for retirees. Many income-focused investors are turning to high-yield ETFs for higher payouts. Two ETFs cited are State Street Blackstone High Income ETF (HYBL), which pays monthly, yields 7.2% and has roughly $545 million AUM, and State Street SPDR Portfolio S&P 500 High Dividend ETF (SPYD), which pays quarterly. HYBL allocates across high-yield corporate bonds, senior loans, equity and U.S. CLO debt tranches.
Read at 24/7 Wall St.
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