4 High Yield ETFs That I’d Buy For Social Security’s Collapse

<!– Legacy Bulma: `live-update-content` opening

In case you haven’t heard, the U.S. government has a massive spending problem. America’s Social Security program is in jeopardy of going bankrupt in less than a decade. Even if you have systematically been paying into your retirement benefits, an insolvency would place you at the bottom rung of the ladder, meaning that your chances of getting paid could be next to zero. If you were depending on government benefits to bankroll your retirement, that plan is now a house of cards. Fortunately, you’ve got options to fund your own retirement so that you are less dependent on a floundering Social Security system. 

And while there is still time for the U.S. government to turn things around before Social Security collapses, I wouldn’t hold my breath. That’s where your investment strategy comes into play, and high yield dividend ETFs might serve you well in your portfolio. We have identified four high-yield ETFs that have the potential to offset any shortfall that is left by the failing Social Security system.

By gaining exposure to the SPDR Portfolio S&P 500 High Dividend ETF (SPYD), Vanguard High Dividend Yield ETF (VYM), Amplify CWP Enhanced Dividend Income ETF (DIVO), and JPMorgan Equity Premium Income ETF (JEPI), you are putting yourself in the driver’s seat with monthly and quarterly distributions so that you are more in control of your destiny including all the expenses that arise — bills, healthcare, etc. — during retirement so that you can continue to collect income when you need it the most. 

SPDR Portfolio S&P 500 High Dividend ETF (SPYD)

The SPDR Portfolio S&P 500 High Dividend ETF (SPYD) boasts a trailing 12-month dividend yield of 4.4%, offering just the right balance of risk and reward for many investor portfolios. It’s a creative way of maximizing the potential of the broader market, given SPYD’s strategy to invest in dozens of high dividend-yielding companies in the S&P 500 index across sectors, with retailers, consumer staples and financial stocks carrying the heaviest weightings as of Q4 2025. And given its low expense ratio of 0.07%, SPYD will allow you to pocket more of the dividend income that comes rolling in rather than handing it all over to State Street Investment Management. 

Top holdings in this ETF alongside their respective dividend yields include CVS Health (NYSE: CVS)/3.2%/, Simon Property Group (NYSE: SPG)/4.8%, Citizens Financial Group (NYSE:CFG)/3.8%, FirstEnergy (NYSE: FE)/3.8% and the very popular dividend stock Altria Group (NYSE: MO)/6.6%.

SPYD’s appeal extends to its performance throughout changing market cycles, delivering an annualized total return of 15.16% over the past five years and outperforming many of its peers in the large-value space while keeping pace with the S&P 500’s benchmark. With a beta of 0.92, it offers a smoother ride than the broader market, helping to cushion the blow of the roller coaster that has been inherent in the stock market of late, paving the way for payouts over growth.

Safety Net: SPYD’s tilt toward real estate and utilities means keeping an eye on interest rate changes, but for dividend hunters building a Social Security safety net, this ETF’s blend of reliability and reward is hard to beat.

Vanguard High Dividend Yield ETF (VYM)

No ETF roundup would be complete without a Vanguard option, and for this we have selected the Vanguard High Dividend Yield ETF (VYM).  With a dividend yield of 2.5%, VYM isn’t the highest of all the high dividend investments to choose from. However with an expense ratio of 0.06%, coupled with its competitive performance, VYM has earned a spot in this roundup as an alternative to depending on Social Security.  

With a focus on large cap value companies, top holdings in this ETF and their respective dividend yields include: Broadcom (Nasdaq: AVGO)/0.67%, JPMorgan (NYSE: JPM)/2.0%, Exxon Mobil (NYSE: XOM)/3.6%, Walmart (NYSE: WMT)/0.88%, and Johnson & Johnson (NYSE: JNJ)/2.7%. 

Year to date, VYM has delivered returns of 12.6%, rivaling the S&P 500’s 12.8% performance. Over the past five years, VYM’s performance has similarly rivaled the broader stock market with an annualized return of approximately 15%. On top of that performance, you’re also earning quarterly distributions of $0.841700 per share, for an annual payout of approximately $3.36 per share. VYM is the steady Eddie and is great for retirees eyeing a Social Security buffer.

Where VYM shines in an otherwise uncertain market is its sector diversity, touching on stocks in financials, healthcare and consumer staples, resulting in greater stability compared with the bumpy ride from more technology-focused ETFs. In down years like 2022, it lost only 3.4% (based on capital return by NAV)  while the S&P dropped over 19%, proving its mettle as a Social Security stand-in. For those seeking to build a durable income stream, VYM is a competitive and attractive choice. 

Amplify CWP Enhanced Dividend Income ETF (DIVO)

Let’s shake things up with the Amplify CWP Enhanced Dividend Income ETF (DIVO). With a dividend yield of 4.5%, DIVO easily fits the bill as a high-yield dividend ETF that can seemingly handily offset any Social Security deficiency. DIVO takes an innovative approach, with a strategy to invest in high-quality dividend-oriented stocks while attempting to amplify returns through covered call stock options. This hedging strategy introduces another layer of risk but also increases the potential for income, even if the performance trails the S&P 500 index over long-term stretches. 

Another reason to consider DIVO for your retirement portfolio is its distribution frequency. DIVO makes monthly payouts, which can come in handy during retirement when expenses can continue to pile up. Year to date, DIVO has delivered returns of 14.2%, outpacing the broader stock market in this shorter time frame, with an annualized return of 13.3% over the past five years. Investors will not have to sacrifice returns for income during retirement.

DIVO holds anywhere from 20-25 stocks at a given time. Top holdings and their respective dividend yields include the following companies: Caterpillar (NYSE: CAT)/1.1%, Apple (Nasdaq: AAPL)/0.42%, Visa (NYSE: V)/0.70%, Microsoft (Nasdaq: MSFT)/0.71%, and American Express (NYSE: AXP)/0.98%. Despite exposure tilted toward technology and financials, sector diversification is part of the strategy alongside features like dividend growth and tactical covered call writing. 

For retirees looking to shore up their finances when Social Security falls short, DIVO’s covered call approach adds a smart twist by selling options on solid dividend stocks to generate extra cash flow on top of standard payouts, while sticking with reliable big-name companies. This approach is designed to provide a cushion during market dips, even if it limits some gains when stocks surge. Overall, it keeps things calmer, with volatility that has been lower than the S&P 500 over the past five years, making drawing on your savings in retirement feel far less bumpy. DIVO’s covered call strategy gives up a bit of upside potential in favor of steadier income. 

JPMorgan Equity Premium Income ETF (JEPI)

We’ve saved the JPMorgan Equity Premium Income ETF, aka JEPI, for last. As a popular choice for retirement, JEPI is an actively managed ETF with an impressive trailing 12-month dividend yield of approximately 8.4%, a go-to investment for retirees seeking to bridge any Social Security gaps. At a modest expense ratio of 0.35%, JEPI aims for monthly income without the hefty fees, filling a void for steady cash flow in an uncertain economy.

In addition to monthly income, JEPI targets returns that are similar to the S&P 500 index but with less volatility. JEPI generates monthly income through a combination of option premiums and stock dividends. This monthly distributor keeps the income rolling in reliably, ideal for covering everyday retirement expenses.

On the performance front, JEPI has trailed the S&P 500 year-to-date but has stayed true to its strategy of preservation over pure growth. Over five years, it has annualized returns of 10.0%, proving its mettle in delivering balanced results. Top holdings alongside their respective dividend yields include Alphabet (Nasdaq: GOOGL)/0.33%, AbbVie (NYSE: ABBV)/2.9%, NVIDIA (Nasdaq: NVDA)/0.02%, Microsoft (Nasdaq: MSFT)/0.71%, Johnson & Johnson (NYSE: JNJ)/2.7% and Amazon (Nasdaq: AMZN). As you’ll spot with holdings like Amazon, not every stock here pays dividends; it’s all part of JEPI’s smart dual engine of option premiums and stock yields to fuel that steady income stream during retirement even if Social Security goes bust. 

The image featured for this article is © celafon / Getty Images