Close Menu
Fund Focus News
    Facebook X (Twitter) Instagram
    Trending
    • Nippon India Growth Mid Cap Fund grows lump sum 400 times, turns Rs 10,000 SIP into Rs 26 crore in 30 years – Money News
    • Mutual Funds industry adds over 7 million folios in January – Mutual Funds News
    • Why passive funds are hiring more to mimic benchmark indices better
    • 3 High-Yield Dividend ETFs That Will Perform the Best in 2026
    • Silver, Gold ETFs Prices See Sharp Swings, SEBI Proposes ETF Price Band Policy; What Does It Mean for You?
    • Pledge Funds Explained: Investor Control and Flexibility
    • Bitcoin (BTC) Surges Past $70K as Inflation Cools, ETFs Steady
    • Fine art investments under scrutiny
    Facebook X (Twitter) Instagram
    Fund Focus News
    • Home
    • Bonds
    • ETFs
    • Funds
    • Investments
    • Mutual Funds
    • Property Investments
    • SIP
    Fund Focus News
    Home»ETFs»3 High-Yield Dividend ETFs That Will Perform the Best in 2026
    ETFs

    3 High-Yield Dividend ETFs That Will Perform the Best in 2026

    February 15, 2026


    3 High-Yield Dividend ETFs That Will Perform the Best in 2026

    © mayu85 / Shutterstock.com

    Income investing has taken on renewed urgency as we move deeper into 2026. High-yield dividend ETFs like the FT Vest S&P 500 Dividend Aristocrats Target Income ETF (BATS:KNG), Amplify CWP Enhanced Dividend Income ETF (NYSEARCA:DIVO), and Invesco High Yield Equity Dividend Achievers ETF (NASDAQ:PEY) can perform better than expected as interest rates come down.

    Investors with long-term plans are looking at higher-yielding assets because these are the ones that are positioned to perform the best when interest rates decline. The market tends to get hungry for yield when inflation is high, and Treasuries no longer yield a healthy amount. Right now, inflation is barely tolerable, and Treasury yields are holding up. However, prolonged rate cuts will lead to a thirst for more yield, and Wall Street will have nowhere but the market to turn to in order to quench that thirst.

    Here are three ETFs to look into if you want to buy ahead of the herd.

    FT Vest S&P 500 Dividend Aristocrats Target Income ETF (KNG)

    The FT Vest S&P 500 Dividend Aristocrats Target Income ETF is an income machine that uses elite dividend stocks plus a covered call overlay to squeeze out an exceptionally high yield. It tracks the Cboe S&P 500 Dividend Aristocrats Target Income Index, which produces an annual dividend yield significantly higher than the S&P 500.

    The “Dividend Aristocrats” component is what gives KNG its quality backbone. These are S&P 500 companies that have increased their dividends every year for at least 25 consecutive years. You’ll find names like Lowe’s (NYSE:LOW), S&P Global (NYSE:SPGI), Kimberly-Clark (NASDAQ:KMB), and CH Robinson (NASDAQ:CHRW).

    The catch is that you don’t capture as much upside, and you get more of the downside risk. Capital appreciation is very muted, with the ETF up just 7.66% over the past five years. That said, it makes up for a very strong income vehicle since very few ETFs give you a high monthly yield with baked-in resilience comparable to the S&P 500.

    KNG has an 8% dividend yield and an expense ratio of 0.75%. Dividends are distributed monthly.

    Amplify CWP Enhanced Dividend Income ETF (DIVO)

    The Amplify CWP Enhanced Dividend Income ETF is an actively managed ETF that blends a curated portfolio of blue-chip, dividend-growing stocks with a tactical covered call strategy. DIVO is special since, while it uses covered calls to derive more income, it does so sensibly.

    Unlike other covered call ETFs, DIVO does not go all-in on the income component. Instead, it holds a concentrated portfolio and then uses the covered call strategy on just a portion of its portfolio. This lets the rest of the portfolio capture upside while the income portion does its job and generates dividends.

    This strategy has ended up working very well over the past few years. DIVO is now one of the most popular ETFs, with a dividend yield of 6.13% and an expense ratio of 0.56%.

    Invesco High Yield Equity Dividend Achievers ETF (PEY)

    If covered call ETFs turn you off, you’re still in luck. The Invesco High Yield Equity Dividend Achievers ETF manages to get you a 4.43% dividend yield that it distributes monthly. PEY has been one of the most consistent names since 2010.

    It tracks the Nasdaq U.S. Dividend Achievers 50 Index, which handpicks 50 U.S. companies that have raised their dividends for at least 10 consecutive years and weights them by yield. That’s why it has managed to deliver both a high yield and upside.

    If you want to minimize tech in your portfolio, this is also a great way to do so. Many dividend ETFs are significantly exposed to the tech sector, but this leads to overlapping exposure if you already have growth stocks in your portfolio. PEY has just 2.79% tech exposure. The lack of tech holdings has made it very resilient during selloffs.

    The expense ratio is 0.54%.

    If You’ve Been Thinking About Retirement, Pay Attention (sponsor)

    Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance, and SmartAsset’s simple quiz makes it easier than ever for you to connect with a vetted financial advisor. Here’s how:

    1. Answer a few simple questions
    2. Get Matched with Vetted Advisors 
    3. Choose Your  Fit 

    Why wait? Start building the retirement you’ve always dreamed of. Get started today! (sponsor)

     



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email

    Related Posts

    Silver, Gold ETFs Prices See Sharp Swings, SEBI Proposes ETF Price Band Policy; What Does It Mean for You?

    February 15, 2026

    Bitcoin (BTC) Surges Past $70K as Inflation Cools, ETFs Steady

    February 14, 2026

    The 3 Best Dividend ETFs to Buy Today for Lifelong Passive Income

    February 14, 2026
    Leave A Reply Cancel Reply

    Top Posts

    The Shifting Landscape of Art Investment and the Rise of Accessibility: The London Art Exchange

    September 11, 2023

    Charlie Cobham: The Art Broker Extraordinaire Maximizing Returns for High Net Worth Clients

    February 12, 2024

    Silver, Gold ETFs Prices See Sharp Swings, SEBI Proposes ETF Price Band Policy; What Does It Mean for You?

    February 15, 2026

    The Unyielding Resilience of the Art Market: A Historical and Contemporary Perspective

    November 19, 2023
    Don't Miss
    Mutual Funds

    Nippon India Growth Mid Cap Fund grows lump sum 400 times, turns Rs 10,000 SIP into Rs 26 crore in 30 years – Money News

    February 15, 2026

    If there is one example that shows the power of patience and compounding in mutual…

    Mutual Funds industry adds over 7 million folios in January – Mutual Funds News

    February 15, 2026

    Why passive funds are hiring more to mimic benchmark indices better

    February 15, 2026

    3 High-Yield Dividend ETFs That Will Perform the Best in 2026

    February 15, 2026
    Stay In Touch
    • Facebook
    • Twitter
    • Pinterest
    • Instagram
    • YouTube
    • Vimeo
    EDITOR'S PICK

    Here’s What March 2025 Equity Mutual Fund Inflows Reveals About Investors – Money News

    April 19, 2025

    Economic uncertainty has consumers worried about financial investments

    March 11, 2025

    How Are I bonds Taxed? 8 Common Situations to Know

    December 1, 2025
    Our Picks

    Nippon India Growth Mid Cap Fund grows lump sum 400 times, turns Rs 10,000 SIP into Rs 26 crore in 30 years – Money News

    February 15, 2026

    Mutual Funds industry adds over 7 million folios in January – Mutual Funds News

    February 15, 2026

    Why passive funds are hiring more to mimic benchmark indices better

    February 15, 2026
    Most Popular

    🔥Juve target Chukwuemeka, Inter raise funds, Elmas bid in play 🤑

    August 20, 2025

    💵 Libra responds after Flamengo takes legal action and ‘freezes’ funds

    September 26, 2025

    ₹10,000 monthly SIP in this mutual fund has grown to ₹1.52 crore in 22 years

    September 17, 2025
    © 2026 Fund Focus News
    • Get In Touch
    • Privacy Policy
    • Terms and Conditions

    Type above and press Enter to search. Press Esc to cancel.