High-Yield Dividend ETFs
Funds currently distributing 5% or more, annualized.
ETFs reach high yields by different roads: holding high-yield stocks or bonds, writing covered calls and distributing the premium, or applying leverage. The road matters more than the number, because it determines how the distribution behaves when markets fall.
Covered-call funds in particular trade upside for income — their high distributions are option premium, paid for by capping gains in rallies.
Methodology
ETFs in our coverage with an annualized distribution yield of 5% or higher, ordered by yield.
What to Keep in Mind
A double-digit fund yield usually includes option premium, leverage or return of capital rather than portfolio dividends alone. Check each fund's distribution history — and whether NAV has held up — before comparing it to a simple equity yield.
Frequently asked questions
How can an ETF yield 10% or more?
Usually by converting something else into distributions: option premium (covered-call funds), leverage, or return of capital. Each sustains a high payout in a different way, with different behavior in drawdowns.
Related Pages
Data updated Aug 27, 2026. This research page is generated from Dividendly's structured market and dividend dataset using the approach described on our methodology and data sources pages. Data is automatically validated using defined rules and may also be periodically reviewed. Research only, not investment advice. Spotted a data error? Report it.