3 Ultra-High-Yield ETFs Paying Over 10% to Buy Now
Investing
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Not only do high yielding ETFs keep you well diversified, they’ll also pay you handsomely just to hold the fund
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With an expense ratio of 0.48%, the REM ETF has a 30-day yield of just over 10.3%.
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One of the best ways to keep your portfolio protected from volatility is with high-yielding exchange-traded funds (ETFs).
Not only do they keep you well diversified, they’ll also pay you handsomely just to hold the fund. Look at the Global X SuperDividend ETF (NYSEARCA: SDIV), for example. With an expense ratio of 0.58%, the ETF has a 30-day yield of 11.85% at the moment.
It’s able to pay that because it invests in 100 of the highest dividend stocks on the market, such as Bright Smart, SES, Delta Israel, and Ithaca Energy, to name a few. It also just paid out a monthly dividend of 19 cents on July 11 to shareholders of record as of July 3. Before that, it paid out a dividend of $0.192 on June 11 to shareholders of record as of June 4.
While the SDIV ETF is certainly worth the investment, here are three others to consider.
Invesco KBW High Dividend Yield Financial ETF
With an expense ratio of 0.35%, the Invesco KBW High Dividend Yield Financial ETF (NASDAQ: KBWD)has a 30-day yield of 12.1%. It just paid out a dividend of just over 14 cents on June 27 to shareholders of record as of June 23. Before that, it paid out a dividend of just over 14 cents on May 23 to shareholders of record as of May 19.
It’s able to pay such a solid dividend because it invests at least 90% of its assets in stocks with competitive dividend yields. Some of which include Orchid Island Capital, Invesco Mortgage Capital, ARMOUR Residential REIT, AGNC Investment, and Annaly Capital, to name just a few of its 42 active holdings.
Since bottoming out at around $11.75, the KBWD ETF rallied back to $14.21. From here, we’d like to see it initially retest $15, which it last tested in late February.
iShares Mortgage Real Estate ETF
We can also look at the iShares Mortgage Real Estate ETF (BATS: REM).
With an expense ratio of 0.48%, the REM ETF has a 30-day yield of just over 10.3%. It’s able to pay that dividend monthly because of its exposure to the U.S. residential and commercial mortgage real estate sectors. It just paid a dividend of just over 54 cents on June 20. Before that, it paid a dividend of just over 11 cents on March 21.
Some of its 32 holdings include Annaly Capital, AGNC Investment, Starwood Property, Arbor Realty Trust, ARMOUR Residential, and Dynex Capital REIT.
We also have to consider that, long-term, residential real estate will be strong.
According to Grand View Research, “The U.S. real estate market size was estimated at USD 130.02 billion in 2024 and is expected to grow at a CAGR of 4.1% from 2025 to 2030. The U.S. real estate market has experienced significant shifts, influenced by a range of economic, demographic, and technological factors such as population growth and urbanization, economic growth and employment rates, millennial homeownership trends, mortgage rates, and financing conditions.”
With regards to commercial real estate, JPMorgan says, “Overall, the outlook for the 2025 commercial real estate is positive. The industrial sector remains the industry’s darling. Multifamily and retail continue to perform well, although they do have vulnerabilities. In some markets, even office vacancy rates are beginning to moderate.”
All of which should have a positive impact on the REM ETF and its yield moving forward.
After bottoming out at around $18.25 in April, the REM ETF raced back to $21.90. From here, we’d like to see it retest $23 initially.
VanEck Mortgage REIT Income ETF
There’s also the VanEck Mortgage REIT Income ETF (NYSEARCA: MORT).
With an expense ratio of 0.42%, the MORT ETF has a 30-day yield of 12.92%. It also just paid a quarterly dividend of just over 26 cents per share on July 7. Before that, it paid a dividend of just under 38 cents per share on April 4.
The MORT ETF replicates the price and yield performance of the MVIS US Mortgage REITs Index, which tracks to performance of the US mortgage real estate investment trusts. Plus, as noted by VanEck.com, “Yields from mortgage REITs have historically been higher than those of equity REITs and many income-oriented securities.”
Some of its 27 holdings include AGNC Investment, Annaly Capital, Starwood Property Trust, Blackstone Mortgage, Ladder Capital, and Apollo Commercial Real Estate.
Since bottoming out at around $8.60 in April, the MORT ETF is now back up to $10.57. From here, we’d like to see the ETF initially retest $11. Longer-term, we’d like to see it rally back to its 2022 high of about $12.50.
While we wait for that to happen, we can always collect its yield.
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