7 Best High-Yield ETFs for Unlocking Passive Income in 2025

In today's low-interest-rate environment, investors are increasingly turning to high-yield exchange-traded funds (ETFs) to generate passive income. These funds offer attractive distributions and the potential for capital appreciation. Here are seven of the best high-yield ETFs to consider in 2025:

1. Vanguard International High Dividend Yield ETF (VYMI)
- Yield: 4.85%
- Expense Ratio: 0.22%
- VYMI invests in foreign companies that pay above-average dividends, providing global diversification and reducing dependence on U.S. economic conditions. It holds over 1,000 stocks across various sectors and countries, with a focus on developed markets.

2. JPMorgan Equity Premium Income ETF (JEPI)
- Yield: 7.33%
- Expense Ratio: 0.35%
- JEPI combines blue-chip U.S. stocks with options strategies to produce monthly income. It holds around 100 stocks, with a focus on large-cap, dividend-paying companies across various sectors.

3. Global X MLP ETF (MLPA)
- Yield: 6.80%
- Expense Ratio: 0.45%
- MLPA invests in master limited partnerships (MLPs) in the midstream pipeline and storage facility sectors, providing exposure to energy markets. It holds around 20 MLPs, offering diversification within the energy sector.

4. iShares Preferred & Income Securities ETF (PFF)
- Yield: 6.00%
- Expense Ratio: 0.46%
- PFF invests in preferred stocks, which offer a higher yield than common stocks and are less volatile. The fund holds a diversified portfolio of preferred stocks, with a focus on financials and utilities.

5. iShares International Select Dividend ETF (IDV)
- Yield: 6.10%
- Expense Ratio: 0.49%
- IDV invests in international companies that pay above-average dividends. The fund holds a diversified portfolio of stocks, with a focus on developed markets and emerging markets.

6. SPDR Bloomberg High Yield Bond ETF (JNK)
- Yield: 6.90%
- Expense Ratio: 0.40%
- JNK invests in high-yield corporate bonds, providing exposure to the high-yield bond market. The fund holds a diversified portfolio of bonds, with a focus on investment-grade and below-investment-grade bonds.

7. VanEck Mortgage REIT Income ETF (MORT)
- Yield: 10.80%
- Expense Ratio: 0.45%
- MORT invests in mortgage real estate investment trusts (mREITs), which own or finance income-producing real estate. The fund holds a diversified portfolio of mREITs, with a focus on residential and commercial properties.

When considering high-yield ETFs, it's essential to evaluate the fund's yield, expense ratio, and underlying investments. Additionally, it's crucial to assess the fund's risk profile and potential for capital appreciation. By diversifying your portfolio with a mix of high-yield ETFs, you can generate passive income while mitigating risk.

In conclusion, high-yield ETFs offer an attractive way to generate passive income in today's low-interest-rate environment. By carefully selecting the right ETFs, investors can unlock significant income streams while maintaining a diversified and balanced portfolio.