8 Leading ETFs for Income Investment to Buy in 2024

Credits: Canva

By: Aquib Nawab

Finance

It prioritizes high-dividend stocks in non-U.S. developed markets. It has a 0.51% expense ratio and a 6% 30-day SEC yield. With $4.3 billion in assets, it's spread across 131 holdings, but 31% are concentrated in the top 10 stocks. Its top three positions are Rio Tinto Group (RIO), Mitsui O.S.K. Lines Ltd. (OTC: MSLOY), and BHP Group Ltd. (BHP).

1 - iShares International Select Dividend ETF (IDV)

Credits: Unsplash

Aims to mirror the total return of the Dow Jones U.S. Dividend 100 Index. It boasts a low expense ratio of 0.06% and is diversified across 104 securities. Rated five stars by Morningstar, it has a 30-day SEC yield of 3.5%. The top three holdings are Broadcom Inc. (AVGO), Merck & Co. (MRK), and AbbVie Inc. (ABBV).

2 - Schwab U.S. Dividend Equity ETF (SCHD)

Credits: Unsplash

3 - SPDR S&P Dividend ETF (SDY)

Now this ETF has $20.4 billion in assets under management and a 0.35% expense ratio. It focuses on elite dividend payers, consisting only of dividend stocks that have increased their payouts for at least 20 consecutive years. Its top three holdings are 3M Co. (MMM), Realty Income Corp. (O), and Edison International (EIX).

Credits: Unsplash

It focuses on large-cap value stocks and has a low expense ratio of 0.06%. It tracks the FTSE High Dividend Yield Index and boasts a 30-day SEC yield of 3.1%. The top holdings are JPMorgan Chase & Co. (JPM), Broadcom, and Exxon Mobil Corp. (XOM).

4 - Vanguard High Dividend Yield ETF (VYM)

Credits: Unsplash

A strong annualized return of 14.4% over the past five years. With $11.9 billion in total assets, it has a 0.28% expense ratio and a tech-heavy allocation. Its top three holdings are Microsoft Corp. (MSFT), Apple Inc. (AAPL), and AbbVie.

5 - WisdomTree U.S. Quality Dividend Growth Fund (DGRW)

Credits: Unsplash

6 - iShares iBoxx $ High Yield Corporate Bond ETF (HYG)

This ETF offers stability with a focus on high-yield corporate bonds. It has a 7.3% 30-day SEC yield and $19.2 billion in total assets spread across 1,191 bond holdings. Its top two issuers are TransDigm and Mozart Debt Merger Subordinated.

Credits: Unsplash

The JPMorgan Equity Premium Income ETF utilizes derivatives to enhance yield, offering a 30-day SEC yield of 7%. With $31.8 billion in total assets, it has a 0.35% expense ratio and diversified holdings across sectors. Its top three stocks are Progressive Corp. (PGR), Microsoft, and Amazon.com Inc. (AMZN).

7 - JPMorgan Equity Premium Income ETF (JEPI)

Credits: Unsplash

The Vanguard Dividend Appreciation ETF focuses on large-cap stocks with consistent dividend growth. It has a low expense ratio of 0.06% and $74.7 billion in total assets spread across 315 stocks. Its top holdings are Microsoft, Apple, and JPMorgan Chase.

8 - Vanguard Dividend Appreciation ETF (VIG)

Credits: Unsplash

Top 9 Dividend Stocks to Buy for 2024