9 High-Yield Dividend ETFs to Buy for Passive Income

If you're looking for a steady stream of passive income, consider investing in high-yield dividend ETFs. These funds offer attractive yields and the potential for capital appreciation. Here are nine dividend ETFs worth considering:

1. **iShares Preferred & Income Securities ETF (PFF)**
- Recent Yield: 6.33%
- 5-Year Avg. Annual Return: 2.38%
- 10-Year Avg. Annual Return: 3.41%
- PFF invests in preferred stocks and hybrid securities, offering a high yield but limited growth potential.

2. **Schwab U.S. Dividend Equity ETF (SCHD)**
- Recent Yield: 3.83%
- 5-Year Avg. Annual Return: 11.60%
- 10-Year Avg. Annual Return: 10.69%
- SCHD tracks the Dow Jones U.S. Dividend 100 Index, focusing on high-yielding U.S. stocks with solid fundamentals.

3. **Vanguard Real Estate ETF (VNQ)**
- Recent Yield: 3.82%
- 5-Year Avg. Annual Return: 2.28%
- 10-Year Avg. Annual Return: 5.16%
- VNQ invests in real estate investment trusts (REITs), providing exposure to the real estate sector with a focus on income generation.

4. **Vanguard High Dividend Yield ETF (VYM)**
- Recent Yield: 2.80%
- 5-Year Avg. Annual Return: 9.74%
- 10-Year Avg. Annual Return: 9.35%
- VYM tracks the FTSE High Dividend Yield Index, focusing on U.S. stocks with high yields (excluding REITs).

5. **iShares Core Dividend Growth ETF (DGRO)**
- Recent Yield: 2.42%
- 5-Year Avg. Annual Return: 11.21%
- 10-Year Avg. Annual Return: 11.28%
- DGRO invests in U.S. stocks that have a history of dividend increases, offering a combination of high yields and growth potential.

6. **Vanguard S&P 500 ETF (VOO)**
- Recent Yield: 1.29%
- 5-Year Avg. Annual Return: 14.95%
- 10-Year Avg. Annual Return: 12.81%
- VOO offers broad exposure to the U.S. stock market, with a lower yield but higher growth potential.

7. **Vanguard Dividend Appreciation ETF (VIG)**
- Recent Yield: 1.65%
- 5-Year Avg. Annual Return: 12.93%
- 10-Year Avg. Annual Return: 12.33%
- VIG focuses on U.S. stocks with a history of dividend increases, offering a combination of income and growth.

8. **First Trust Rising Dividend Achievers ETF (RDVY)**
- Recent Yield: 1.49%
- 5-Year Avg. Annual Return: 15.05%
- 10-Year Avg. Annual Return: 13.21%
- RDVY invests in the Nasdaq US Rising Dividend Achievers Index, focusing on companies with growing dividends.

9. **VanEck Preferred Securities ex Financials ETF (PFXF)**
- Recent Yield: 7.60%
- 5-Year Avg. Annual Return: 4.84%
- 10-Year Avg. Annual Return: 5.50%
- PFXF invests in preferred securities outside the financial sector, offering a high yield with moderate growth potential.

When considering high-yield dividend ETFs, it's essential to evaluate their expense ratios, tax implications, and sector allocations. Diversification can help mitigate risks, and understanding the impact of interest rate changes on these ETFs can inform your investment decisions.