In this article, we will be taking a look at 10 dividend ETFs with over 4% yield. To skip our detailed analysis of dividend investing, you can go directly to see the 5 Dividend ETFs with Over 4% Yield.
An exchange-traded fund, or ETF, is not your typical investment fund or stock, however, it is an investment option that stands to offer multiple benefits to investors. For instance, these investment funds offer the diversification advantages of mutual funds, but are also easily invested in and traded much like regular stocks like Exxon Mobil Corporation (NYSE: XOM), The Procter & Gamble Company (NYSE: PG), Verizon Communications (NYSE: VZ), and Walmart Inc. (NYSE: WMT). Additionally, these funds offer lowers fees than others and have varying risk levels too, depending on the type of ETF you are looking at. Regardless, this all does not mean that investing in ETFs is easy or a fool-proof investment strategy, by any means. All it goes to show is that these funds have much to offer, especially when you are dealing with dividend-yielding ETFs that offer somewhat high yields and thus stable passive income streams alongside all the other benefits mentioned above.
The global exchange-traded fund industry has thus been one that has managed to keep the ball rolling, both in terms of its own growth, and in terms of its subsequent popularity among investors. A Thomson Reuters report offering data on exchange-traded funds has, for instance, mentioned that as of 2017, the ETF industry had ownership of over $4 trillion worth of global assets, with record net inflows for over three years of consecutive monthly growth as well. The report has mentioned that the growth of the exchange-traded fund industry is not something that is foreseeably going to slow down or wither away, either, since these funds accounted for about 2% of the number of funds out there, and 9% of the assets under management in the funds market at large.
According to Global X Funds in their Thematic ETF Report for the second quarter of 2021 as well, the continued growth and positive performance of ETFs was made clear. By the end of the second quarter of 2021, the assets under management of thematic ETFs alone constituted around 2.2% of the US ETF industry’s $6.5 trillion total assets under management figure. By the end of the second quarter, thus, the assets under management of thematic ETFs stood at $143.2 billion, showcasing an 8% growth when compared to the $133.1 billion assets under management figure recorded at the end of the first quarter of 2021. Positive net inflows also contributed about $5.2 billion to this gain in assets under management, while market activity contributed about $4.9 billion on top.
Investing has become difficult by the day, even for the smart money. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
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Without further ado, let’s take a look at the 10 dividend ETFs with over 4% yield.
Our Methodology
We have selected dividend ETFs with yields of 4% and above for our list below. For each ETF we have mentioned its yield, ranking them from the lowest to the highest dividend yield. Finally, we have mentioned each ETF’s performance relative to the S&P 500 in the past year to demonstrate its financial performance.
Dividend ETFs with Over 4% Yield
10. Global X MSCI SuperDividend EAFE ETF (NASDAQ: EFAS)
Dividend Yield: 4.20%
Global X MSCI SuperDividend EAFE ETF (NASDAQ: EFAS), launched and managed by Global X Management Company LLC, invests in public equity markets and stocks of companies in the energy, real estate, materials, consumer discretionary, financials, communication services, telecommunication services, and utilities sectors. The fund ranks 10th on our list of dividend ETFs with over 4% yield.
Compared to the S&P 500, the price return for Global X MSCI SuperDividend EAFE ETF (NASDAQ: EFAS) in the past year was 24.08%, versus the S&P 500’s 29.10% return. The total return for Global X MSCI SuperDividend EAFE ETF (NASDAQ: EFAS) was 29.91%, compared to the S&P 500’s 10.4% return. Global X MSCI SuperDividend EAFE ETF (NASDAQ: EFAS) has also gained 3.43% in the past 6 months and 8.86% year to date.
Like Exxon Mobil Corporation (NYSE: XOM), The Procter & Gamble Company (NYSE: PG), Verizon Communications (NYSE: VZ), and Walmart Inc. (NYSE: WMT), Global X MSCI SuperDividend EAFE ETF (NASDAQ: EFAS) is a good option to invest in.
9. iShares International Select Dividend ETF (BATS: IDV)
Dividend Yield: 4.33%
iShares International Select Dividend ETF (BATS: IDV) invests in growth and value stocks with diversified market capitalizations, across diversified sectors. It also invests in dividend stocks and works to track the performance of the Dow Jones EPAC Select Dividend Index, through the representative sampling technique. The fund ranks 9th on our list of dividend ETFs with over 4% yield.
Compared to the S&P 500, the price return for iShares International Select Dividend ETF (BATS: IDV) in the past year was 22.03%, versus the S&P 500’s 29.10% return. The total return for iShares International Select Dividend ETF (BATS: IDV) was 27.88%, compared to the S&P 500’s 10.4% return. iShares International Select Dividend ETF (BATS: IDV) has also gained 3.25% in the past 6 months and 8.62% year to date.
Like Exxon Mobil Corporation (NYSE: XOM), The Procter & Gamble Company (NYSE: PG), Verizon Communications (NYSE: VZ), and Walmart Inc. (NYSE: WMT), iShares International Select Dividend ETF (BATS: IDV) is a good option to invest in.
9. WisdomTree Emerging Markets High Dividend Fund (NYSE: DEM)
Dividend Yield: 4.54%
WisdomTree Emerging Markets High Dividend Fund (NYSE: DEM), launched by WisdomTree Investments, Inc., and co-managed by Mellon Investments Corporation and WisdomTree Asset Management, Inc., is next on our list of dividend ETFs with over 4% yield. It invests in growth and value stocks across diversified sectors and market capitalizations, alongside dividend stocks, and ranks 8th on our list.
Compared to the S&P 500, the price return for WisdomTree Emerging Markets High Dividend Fund (NYSE: DEM) in the past year was 18.82%, versus the S&P 500’s 29.10% return. The total return for WisdomTree Emerging Markets High Dividend Fund (NYSE: DEM) was 25.01%, compared to the S&P 500’s 10.4% return. WisdomTree Emerging Markets High Dividend Fund (NYSE: DEM) has also gained 4.44% in the past 6 months and 8.95% year to date.
Like Exxon Mobil Corporation (NYSE: XOM), The Procter & Gamble Company (NYSE: PG), Verizon Communications (NYSE: VZ), and Walmart Inc. (NYSE: WMT), WisdomTree Emerging Markets High Dividend Fund (NYSE: DEM) is a good option to invest in.
7. Invesco S&P Ultra Dividend Revenue ETF (NYSE: RDIV)
Dividend Yield: 4.67%
Invesco S&P Ultra Dividend Revenue ETF (NYSE: RDIV) invests in growth and value stocks across diversified sectors and market capitalization, ranking 7th on our list of dividend ETFs with over 4% yield. The fund works to track the performance of the S&P 900 Dividend Revenue-Weighted Index, using the full replication technique.
Compared to the S&P 500, the price return for Invesco S&P Ultra Dividend Revenue ETF (NYSE: RDIV) in the past year was 39.94%, versus the S&P 500’s 29.10% return. The total return for Invesco S&P Ultra Dividend Revenue ETF (NYSE: RDIV) was 47.91%, compared to the S&P 500’s 10.4% return. Invesco S&P Ultra Dividend Revenue ETF (NYSE: RDIV) has also gained 4.44% in the past 6 months and 22.67% year to date.
Like Exxon Mobil Corporation (NYSE: XOM), The Procter & Gamble Company (NYSE: PG), Verizon Communications (NYSE: VZ), and Walmart Inc. (NYSE: WMT), Invesco S&P Ultra Dividend Revenue ETF (NYSE: RDIV) is a good option to invest in.
6. SPDR Series Trust – SPDR Portfolio S&P 500 High Dividend ETF (NYSE: SPYD)
Dividend Yield: 4.72%
SPDR Series Trust – SPDR Portfolio S&P 500 High Dividend ETF (NYSE: SPYD), launched and managed by State Street Global Advisors, Inc., invests in public equity markets in the US. The fund also invests in growth and value stocks of large-cap companies across diversified sectors, and dividend stocks. It ranks 6th on our list of dividend ETFs to buy now.
Compared to the S&P 500, the price return for SPDR Series Trust – SPDR Portfolio S&P 500 High Dividend ETF (NYSE: SPYD) in the past year was 38.74%, versus the S&P 500’s 29.10% return. The total return for SPDR Series Trust – SPDR Portfolio S&P 500 High Dividend ETF (NYSE: SPYD) was 46.36%, compared to the S&P 500’s 10.4% return. SPDR Series Trust – SPDR Portfolio S&P 500 High Dividend ETF (NYSE: SPYD) has also gained 6.88% in the past 6 months and 24.14% year to date.
Like Exxon Mobil Corporation (NYSE: XOM), The Procter & Gamble Company (NYSE: PG), Verizon Communications (NYSE: VZ), and Walmart Inc. (NYSE: WMT), SPDR Series Trust – SPDR Portfolio S&P 500 High Dividend ETF (NYSE: SPYD) is a good option to invest in.
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Disclosure: None. 10 Dividend ETFs with Over 4% Yield is originally published on Insider Monkey.
