High Dividend Yield ETFs: Breaking Down the Strategies

Investors and traders sometimes come across exchange-traded funds (ETFs) that show extremely high forward dividend yields, according to one such list you can find here.

What are these high-yield ETFs and what exactly is the underlying activity producing these high dividend yields?

Are any of them safe? Or are they a mix of time bombs and melting ice cubes?

We’ll explore all of this in this article.

In short, these funds aren’t traditional dividend growers like utilities or dividend aristocrats.

Instead, most of them rely on specialized income strategies, often based on derivatives or concentrated exposures, to generate distributions.

(Please note that dividend yields change regularly. The ones mentioned in this article are estimates. Yields can also sometimes be backward-looking or estimated based on previous payouts. For any ETFs of interest, please check them individually.)

Below we break down the funds from the highest reported yields down.

To keep the article at a reasonable length, we can’t go through each ETF – and there is a lot of overlap with many of these – so we will group them where appropriate.

Key Takeaways – High Dividend Yield ETFs

• Many ETFs boasting extreme yields (30%–200%+) don’t pay traditional dividends.
  • They generate income through options premiums (usually covered calls) and futures mechanics to a lesser extent on some, often tied to volatile assets (Tesla, Bitcoin, Coinbase, etc.).
• Most of the payouts are not stable. Yields swing with market volatility and option pricing, often capping upside gains.
• Crypto- and commodity-linked leveraged ETFs show inflated “yields” from derivative overlays (their options are pricy because of their volatility) and potentially roll mechanics, not sustainable income.
• Mid-tier yields (12–20%) come from index covered-call funds, volatility premium strategies, or structured income products.
  • Steadier than single-stock plays but still cap upside.
• Traditional bond, loan, CLO, and preferred ETFs (6–8% yields) are more sustainable but carry credit/default risk.
• Key insight: the higher the yield, the closer it is to speculation, not safe income.
• By and large, your standard diversified, low-cost ETFs will fit the broadest audience (e.g., SPY, VOO, VT, VTI). These won’t show up on this list.

High Dividend Yield ETFs

Bitwise COIN Option Income Strategy ETF (ICOI) – 255.01%

This fund focuses on generating income from Coinbase (COIN) stock exposure.

Instead of simply holding COIN shares, the ETF sells options against its position, capturing premiums.

The combination of high option premiums (due to Coinbase’s volatility) leads to the unusually high – we can go ahead and say extreme – stated yield.

These yields aren’t the same as sustainable dividend growth; they come from option income and can fluctuate widely.

ProShares UltraShort Ether ETF (ETHD) – 202.66%

This is a leveraged inverse ETF designed to deliver the opposite of Ethereum’s daily return, multiplied by two.

Unlike a stock or bond fund, it doesn’t hold income-generating assets.

The high reported “dividend” comes from how leveraged and inverse ETFs manage financing and derivatives positions.

Distributions here are more a byproduct of fund mechanics rather than corporate dividends, so yields may look extreme and aren’t comparable to traditional income strategies.

YieldMax PLTR Option Income ETF (PLTY) – 133.28%

YieldMax SMCI Option Income ETF (SMCY) – 131.08%

YieldMax COIN Option Income ETF (CONY) – 129.81%

YieldMax MSTR Option Income ETF (MSTY) – 79.52%

YieldMax NVDA, AMD, AI, TSM, MARA, BABA, CVNA, MRNA, TSLA Short, HOOD, and others (various yields from ~56% to ~75%)

The YieldMax series operates on the same principle: concentrated exposure to a single high-volatility stock (such as Palantir, Super Micro Computer, Coinbase, Nvidia, or Tesla), paired with an options overlay.

The ETF collects option premiums by writing covered calls or similar strategies. 

Because these underlying stocks are volatile, option premiums are very large, creating distributions that can exceed the actual returns of the stock itself in yield terms.

However, You’re trading off upside growth. If the stock rallies strongly, much of the gain is capped due to the options written.

Bitwise MARA Option Income Strategy ETF (IMRA) – 118.57%

Bitwise MSTR Option Income Strategy ETF (IMST) – 78.20%

Bitwise GME Option Income Strategy ETF (IGME) – 84.79%

Bitwise offers a smaller set of option income ETFs similar to YieldMax, but tied to different volatile names like Marathon Digital (MARA), MicroStrategy (MSTR), and GameStop (GME).

These funds pursue the same “income through option premiums” approach, where yield reflects option market pricing rather than dividends paid by the companies themselves.

Tidal Trust II YieldMax Sub-Series (BABO, CVNY, HOOY, WNTR, etc. – yields ranging from ~58% to 115%)

The Tidal Trust II structure manages a variety of YieldMax-branded funds.

All are essentially identical in design but focus on different single stocks.

The “short” versions (like WNTR tied to short MSTR) use options in a way that benefits from downside exposure while still producing distributions (i.e., selling puts).

These products magnify risk since they depend on both the stock’s volatility and option pricing.

Volatility Premium Plus ETF (ZVOL) – 47.34%

Unlike the stock-specific YieldMax or Bitwise funds, this ETF uses volatility trading strategies.

It looks to harvest what’s known as the volatility risk premium by systematically selling volatility exposure (such as options or volatility futures) and capturing the difference between implied and realized volatility.

Distributions stem from this premium collection rather than company payouts.

The strategy can generate income but you’re exposed to sharp losses in periods of market stress when volatility spikes.

ProShares Bitcoin Strategy ETF (BITO) – 68.51%

ProShares Bitcoin & Ether Equal-Weighted ETF (BETE) – 61.26%

ProShares Bitcoin & Ether Market Cap ETF (BETH) – 57.32%

The ProShares crypto-linked ETFs use futures contracts on Bitcoin or Bitcoin and Ethereum.

They don’t directly hold the “coins” themselves.

Futures-based ETFs often have large distribution yields due to how contracts roll and financing costs are managed, but these yields shouldn’t be confused with regular dividends.

ProShares 2x Corn ETF (CORNX) – 64.43%

This commodity ETF is used to double the daily return of corn futures.

Like other leveraged commodity funds, it generates distributions based on futures market mechanics rather than farming profits or company dividends.

The yield number reflects futures roll yield and derivatives income, making it highly variable.

Also, as we explained in this article, leveraged ETFs are made for day trading purposes, not for holding over multi-day periods due to the daily reset. It leads to deviations because of the compounding effects.

Key Takeaway

So, as we’ll do periodically, let’s pause for a second, as we can often glean some insights by yield tier.

Most of the ETFs showing three-digit or very high double-digit dividend yields are option-income funds tied to volatile single stocks or crypto-related securities.

Their distributions come from option premiums (plus futures market mechanics for some) rather than steady dividends from companies.

While these funds pay out frequently, their yields can swing dramatically and shouldn’t be mistaken for stable income sources.

YieldMax Option Income ETFs – Broad Coverage (36%–47% yields)

• TSLA (TSLY) – 46.59%
• META (FBY) – 44.18%
• ABNB (ABNY) – 42.82%
• GOOGL (GOOY) – 41.14%
• SNOW (SNOY) – 36.63%
• AAPL (APLY) – 36.44%
• Short NVDA (DIPS) – 33.72%

Like the first batch, this set belongs to the YieldMax single-stock option income franchise.

Each ETF targets one popular and volatile stock (Tesla, Meta, Airbnb, Alphabet, Snowflake, Apple) and generates income by selling covered calls or similar derivatives.

Reported yields often exceed 35–45%, but this comes at the cost of capping upside when the stock rallies.

The “short” versions (like DIPS, tied to Nvidia downside) try to monetize volatility in the opposite direction, combining short exposure with option writing.

YieldMax Dorsey Wright Featured Innovation ETF (FEAT) – 46.85%

YieldMax Dorsey Wright Hybrid ETF (FIVY) – 37.04%

These two YieldMax funds aren’t tied to a single stock but rather use thematic baskets selected through Dorsey Wright’s momentum and sector rotation strategies.

They then overlay option-income techniques to produce distributions.

Because the holdings are diversified across innovative stocks, option premiums are smaller than with ultra-volatile single names, but still high enough to deliver yields north of 35%.

ProShares Ether Strategy ETF (EETH) – 45.78%

This ETF provides Ethereum exposure through futures contracts. Similar to ProShares’ Bitcoin futures funds, distributions come from how the futures roll is structured, not from dividends.

Futures-linked income can create large distributions, especially when markets are volatile, but yields vary dramatically depending on futures curve conditions.

REX Crypto & AI Income ETFs (CEPI – 43.67%, AIP – 35.53%)

The REX CEPI fund combines crypto-related equities with an option overlay to monetize volatility in digital assets.

The AIP fund does the same in AI-linked stocks.

These are hybrid approaches: concentrated sector bets plus derivatives income.

Yields look elevated because both crypto and AI equities have wide option premiums, but they’re subject to sharp swings in sector sentiment.

Simplify Bitcoin Strategy PLUS ETF (MAXI) – 37.77%

This fund holds Bitcoin futures with a managed overlay that may include options or income strategies to smooth returns.

The “PLUS” indicates it goes beyond just futures exposure.

Like other crypto futures ETFs, distributions largely reflect pricy options and futures roll mechanics.

Amplify Bitcoin Income Funds – 30%+ Yields

• Amplify Bitcoin Max Income (BAGY) – 30.70%
• Amplify Bitcoin 2% Monthly Option (BITY) – 24.47%

Amplify’s funds specialize in options written directly on Bitcoin futures or related exposures.

By consistently selling call options, they generate distributable income.

Yields vary depending on option demand and Bitcoin volatility.

These funds can distribute large amounts but give up much of the upside in Bitcoin rallies.

NEOS Bitcoin High Income ETF (BTCI) – 27.92%

This NEOS fund follows the same approach: option-selling on Bitcoin futures exposure.

The high yields are tied to Bitcoin’s persistent volatility, which keeps option premiums rich.

Grayscale Bitcoin Covered Call ETF (BTCC) – 25.35%

This ETF provides a Bitcoin-linked strategy with systematic covered call writing.

It operates like a traditional equity covered call fund but applied to Bitcoin exposure.

Again, the distributions are option-driven and depend on how volatile the underlying asset is.

Kurv Yield Premium ETFs (TSLP – Tesla 26.97%, AMZP – Amazon 18.11%, NFLP – Netflix 17.10%)

Kurv funds are essentially competitors to YieldMax: single-stock strategies on well-known names, with options written to harvest premiums.

Their yields vary depending on the volatility of the chosen stock.

Tesla’s ETF is at the higher end (~27%), while Amazon and Netflix versions produce lower forward yields (~17–18%).

iShares BuyWrite ETFs (IVWM – Russell 2000 at 26.01%, IVVW – S&P 500 at 16.93%)

Unlike single-stock strategies, these funds apply the covered call approach to broad indexes.

They hold the index (Russell 2000 or S&P 500) and sell calls against it.

The result is steady distributions but with capped upside in market rallies.

Yields are lower than in concentrated option funds because broad indexes are less volatile.

The benefit is less single-stock risk.

Defiance Income Target ETFs (QQQT – Nasdaq 100 at 21.02%, SPYT – S&P 500 at 21.07%)

Defiance’s funds are also index-based income products, using options to create consistent payouts.

Unlike iShares’ straightforward buy-write design, Defiance structures the fund to meet a “target income” profile.

Yields hover around 21%, higher than iShares’ versions, which suggests more aggressive use of option overlays.

Simplify Volatility Premium ETF (SVOL) – 20.81%

SVOL systematically sells volatility exposure, typically shorting VIX futures and hedging tail risks.

The goal is to capture the long-term premium embedded in implied volatility.

Its distributions come from realized vs. implied volatility differences.

Because volatility spikes occasionally, returns can be lumpy, but the strategy can generate high payouts during calm periods.

Other Income-Focused ETFs (17%–20% yields)

• YieldMax JPM (JPMO) – Single-stock option income on JPMorgan Chase.
• ProShares Ultra Bitcoin (BITU) – A leveraged Bitcoin futures ETF; distributions reflect futures mechanics.
• FT Vest Bitcoin Target ETF (DFII) – Bitcoin futures with structured income targeting.
• Saba Capital Income & Opportunities (SABA) – A closed-end fund arbitrage and income strategy, distributing based on premiums/discounts.
• Calamos Autocallable Income ETF (CAIE) – Uses structured notes with autocall features to provide defined income streams.

These all fall under specialized yield strategies, mixing derivatives, futures, or structured notes with the goal of creating consistent distributions.

Each is subject to very different risks depending on whether it’s tied to equities, crypto, or structured debt.

Key Takeaway

This batch of ETFs reinforces the trend: the highest stated yields (20%–45%+) mostly come from option-writing strategies tied to volatile assets like Tesla, Bitcoin, or Meta.

Index-based covered call funds deliver more moderate 16–21% yields, while specialized products like volatility premium ETFs or structured income funds fall in between.

Most of these are “long” funds with covered calls attached to them. To avoid losing periods, the call option income needs to offset any capital losses.

Some funds might give partial upside exposure, depending on how they’re designed. But the more aggressive the yield, the closer to at-the-money they are.

iShares High Yield and Investment Grade Bond ETFs

• iShares High Yield Corporate Bond (HYGW) – 11.86%
• iShares Investment Grade Corporate Bond (LQDW) – 14.97%
• iShares 20+ Year Treasury Bond BuyWrite (TLTW) – 12.21%

These funds sit closer to the traditional bond ETF space.

HYGW and LQDW invest in corporate debt: high yield and investment grade, respectively.

Their distributions come from coupon income plus derivatives as calls are written against them to enhance their yield.

TLTW holds long-dated Treasuries and adds a covered call overlay, boosting distributions by selling options on Treasury ETFs.

Amplify Covered Call and Income Strategies

• Amplify COWS Covered Call (HCOW) – 12.13%
• Amplify Bloomberg U.S. Treasury 12-Month YieldMax (TLTP) – 12.00%
• Amplify High Income ETF (YYY) – 12.21%

Amplify offers several income strategies.

HCOW is based on covered calls written on the COWS index (cash cow companies with strong free cash flow).

TLTP packages Treasury exposure with an income overlay.

YYY is a fund-of-funds, targeting closed-end funds with high distributions. It’s one of the higher-cost funds, with a total expense ratio of 3.25%.

HCOW and TLTP combine traditional asset income with option overlays to enhance payouts.

YYY buys CEFs at a discount, which accounts for its high yield without using options strategies.

YieldMax Target 12 ETFs

• YieldMax Target 12 Real Estate (RNTY) – 12.13%
• YieldMax Target 12 (SOXY) – 11.96%

These are specialized YieldMax products designed to generate “target” income by selling options on sector baskets.

Unlike single-stock funds, they diversify across multiple holdings.

The yield enhancement still comes primarily from option premiums.

Global X Risk-Managed Income Funds

• NASDAQ 100 Risk Managed (QRMI) – 12.03%
• S&P 500 Risk Managed (XRMI) – 12.67%

These ETFs combine long equity exposure with protective puts and covered call writing.

The goal is downside risk management with steady distributions.

Because puts are purchased as insurance, distributions tend to be lower than single-stock funds but steadier than purely long equities.

SoFi and NEOS Income Funds

• SoFi Enhanced Yield (THTA) – 12.02%
• NEOS S&P 500 High Income (SPYI) – 11.85%
• NEOS Russell 2000 High Income (IWMY) – 14.32%
• NEOS Nasdaq-100 High Income (QQQI) – 14.22%
• NEOS Gold High Income (IAUY) – 12.66%

NEOS specializes in buy/write-style ETFs across indexes (S&P 500, Nasdaq 100, Russell 2000, and even gold).

They sell options against these benchmarks to generate distributions.

SoFi’s product is smaller in scale but targets enhanced yield through similar derivative overlays.

These funds appeal to investors who want broad exposure with added income at the expense of capped upside.

Kurv Yield Premium Strategy Funds

• Google (GOOP) – 14.07%
• Apple (AAPY) – 12.90%
• Global Enhanced Income (KGLD) – 11.99%

Kurv mirrors YieldMax with single-stock or thematic income products, writing options on high-profile equities like Apple and Google.

The “Enhanced Income” gold strategy combines exposure to gold-related assets with options to generate extra payouts.

This can also be attractive to those who want exposure to gold, but like the idea of generating some income from it.

WisdomTree and First Trust Options-Based Income Funds

• WisdomTree PutWrite (WTPI) – 11.89%
• First Trust Small Cap BuyWrite (FTKI) – 11.89%

Both funds rely on option overlays.

WTPI sells puts on equities, collecting premiums while accepting downside exposure.

FTKI writes calls on small-cap stocks, creating income but capping gains.

Like many on this list, these strategies generally produce reliable distributions when volatility is steady but face losses in sharp downturns.

Simplify Structured Income Strategies

• Simplify Target 15 Distribution (XV) – 14.80%
• Simplify Interest Rate Hedge (PFIX) – 12.98%
• Simplify Barrier Income (SBAR) – 12.77%

Simplify uses structured derivatives to build defined-outcome products.

XV distributes income based on a managed derivatives strategy.

PFIX is more of a hedge against interest rate spikes, but its derivatives positions can create sizable distributions.

SBAR uses structured “barrier” notes to generate income while limiting exposure.

Other Specialty Funds

• Calamos Autocallable Income (CAIE) – 17.35% – uses autocallable structured notes to provide defined income.
• NestYield Total Return Guard (EGGS) – 13.61% – a risk-managed fund blending equity exposure with derivative overlays.
• Westwood Enhanced Energy (WEEI) – 13.01% – focuses on energy equities with a derivative overlay income layer.
• Invesco KBW High Dividend Yield (KBWD) – 12.55% – holds high-yielding financial sector stocks, distributions reflect dividends more than options.

Key Takeaway

At the 12–15% yield range, funds split into three main categories:

1. Bond and trust-based ETFs (iShares, Sabine, Invesco) that generate payouts from coupons or royalties.
2. Covered call and putwrite ETFs (Amplify, WisdomTree, Global X, NEOS) that monetize volatility.
3. Structured and hybrid funds (Simplify, Calamos, NestYield) using derivatives or autocallables to engineer yield.

The yields are still far above traditional dividend ETFs but are more grounded than the extreme 30–200% figures in the earlier batches.

Invesco S&P 500 Equal Weight Income ETF (RSPA) – 9.24%

This ETF holds all S&P 500 companies equally weighted, rather than by market cap, and enhances income by writing covered calls.

The yield comes from both dividends and (mostly) option premiums, while performance is tied to the broader S&P with capped upside.

Strategy Shares Gold Enhanced Yield ETF (GOLY) – 9.11%

A niche ETF that combines gold exposure with an income overlay.

The yellow metal itself doesn’t pay dividends, so the yield comes entirely from writing options against gold-related assets or futures.

Performance will be heavily linked to commodity markets.

FT Vest Income ETFs – 9%+ Yields

• Dogs 10 Target Income (DOGG) – 9.11%
• 20+ Year Treasury Target Income (LTTI) – 8.77%
• Investment Grade Target Income (LQTI) – 8.73%
• High Yield & Target Income (HYTI) – 10.12%

FT Vest uses structured outcome products (buffered ETFs, target income products) to manufacture yield.

Their “Dogs 10” version focuses on the classic “Dogs of the Dow” stocks with an income overlay, while others hold bonds (Treasuries, investment grade, high yield) with structured derivative layers to enhance distributions.

Natixis Gateway Quality Income ETF (GQI) – 9.09%

GQI is an options-based equity income fund.

It focuses on high-quality equities and systematically sells index options to produce income.

Similar to traditional buy-write funds but marketed as “quality-focused.”

Kensington Hedged Premium Income ETF (KHPI) – 9.01%

This fund blends covered calls with a hedging overlay, trying to smooth volatility while producing consistent income.

It’s part of a group of active “hedged premium” funds.

Real Asset and Sector Income ETFs

• AXS Real Estate Income (RINC) – 8.94% – targets REITs and other real estate-linked assets with an income strategy.
• InfraCap MLP ETF (AMZA) – 8.14% – invests in master limited partnerships (MLPs) in the energy infrastructure space, which are naturally high-yielding due to distributions of cash flows.
• InfraCap Equity Income Fund (ICAP) – 8.86% – another InfraCap product focusing on equities with an income overlay.
• AXS / Westwood Salient Enhanced (MDST, WEEL, etc.) – ~10–13% in other batches – funds blending equities or sectors with structured overlays.

Amplify Growth & Income ETFs

• Amplify CWP Growth & Income (QDVO) – 8.87%
• Amplify COWS Covered Call (HCOW) – 12.13% (seen earlier)

Amplify often uses equity baskets or indexes, then sells calls to generate income.

The CWP version focuses on large-cap growth stocks with enhanced distributions.

TrueShares Active Yield ETF (ERNZ) – 8.83%

An actively managed equity income fund. It blends stock selection with derivative overlays to generate higher payouts than traditional dividend ETFs.

First Trust BuyWrite Income ETF (FTHI) – 8.79%

This fund holds US large-cap equities while selling index options.

It’s a straightforward covered call fund, similar to Global X’s XYLD/QYLD, but managed by First Trust.

LifeX Term and Longevity Income ETFs – 8.5–8.7%

• 2040 Term Income (LDER) – 8.69%
• 2048 Longevity Income (LFAE) – 8.54%
• 2049 Longevity Income (LFAF) – 8.21% 

These unusual ETFs structure payouts around long-dated time horizons, essentially aiming to create predictable retirement-style cash flows.

They blend bonds and derivatives for long-term distribution schedules.

NEOS Enhanced Income Credit Selection ETF (HYBI) – 8.64%

An actively managed bond fund that overlays options to boost yield. It invests in credit markets while selling options on indexes for income.

Equity Income and Dividend Strategies

• FT Vest Rising Dividend Achievers (RDVI) – 8.31% – invests in companies with a history of rising dividends, with an income overlay.
• FT Vest SMID Rising Dividend (SDVD) – 8.36% – same concept applied to small- and mid-cap stocks.
• Goldman Sachs S&P 500 Premium Income (GPIX) – 8.44% – similar to JEPI, combining equities with covered call writing.
• Goldman Sachs Nasdaq-100 Premium Income (GPIQ) – 10.41% – same approach but focused on Nasdaq 100 names.
• JPMorgan Nasdaq Equity Premium (JEPI) – 9.54% – a flagship covered call fund, one of the largest in the space, known for blending equity selection with systematic option selling.

Covered Call / BuyWrite Funds (Global X, Invesco)

• Global X S&P 500 Covered Call (XYLD) – 9.55%
• Global X Nasdaq 100 Covered Call (QYLD) – 11.72%
• Global X Russell 2000 Covered Call (RYLD) – 11.88%
• Global X SuperDividend (SDIV) – 9.69%
• Global X SuperDividend REIT (SRET) – 8.10%

Global X has built a large franchise in high-yield ETFs using the covered call buy-write model.

Each tracks a major index, holds it, and writes calls to generate premiums.

The result is consistent monthly income, but capped upside in bull markets.

SDIV and SRET instead focus on high-dividend stocks or REITs directly, without as heavy an options overlay.

Bond, Credit, and Hybrid Strategies

• NEOS Nasdaq-100 Hedged Equity (QQQH) – 9.50% – Nasdaq exposure with an option overlay.
• NEOS Real Estate High Income (IYRI) – 11.24% – REITs combined with derivatives to increase payouts. Some REIT funds like MORT will naturally tend to show up in such lists because REITs are heavily income-focused.
• WisdomTree Private Credit (HYIN) – 9.41% – invests in private credit and alternatives, with a distribution stream from loan coupons.
• Virtus InfraCap Preferred Stock (PFFA) – 9.38% – invests in preferred shares with added leverage.
• Rareview Dynamic Fixed Income (RDFI) – 8.10% – a credit-based income fund using active bond management.
• Swan Enhanced Dividend Income (SCLZ) – 8.11% – combines dividend stocks with hedging overlays.

Key Takeaway

In this 8%–12% yield tier, we’ve shifted from extreme volatility-driven products into more balanced income approaches:

• Covered call/buywrite ETFs (Global X, JPMorgan, Invesco, Goldman Sachs) dominate, offering consistent income at the cost of capped equity gains.
• Bond and credit ETFs (iShares, NEOS, WisdomTree, Invesco) provide higher yields through fixed income markets, sometimes layered with options.
• Specialty funds (royalty trusts, FT Vest structured income products, LifeX longevity funds) add diversity, but with unique risks tied to their structure.

Broad High-Yield Corporate Bond ETFs (7.2%–7.5%)

• SPDR Portfolio High Yield Bond (SPHY) – 7.43%
• Schwab High Yield Bond (SCYB) – 7.42%
• Franklin High Yield Corporate (FLHY) – 7.27%
• FlexShares High Yield Value-Scored Bond (HYGV) – 7.27%
• Fidelity Sustainable High Yield Bond (FSYD) – 7.29%
• PGIM Active High Yield Bond (PHYL) – 7.32%
• T. Rowe Price High Yield Bond (THYF) – 7.31%

These funds invest directly in high-yield corporate debt.

The yield reflects the higher coupon payments of below-investment-grade bonds.

Differences between them lie in index construction (value tilt, sustainable tilt, active management) but the underlying strategy is the same: collect income from corporate borrowers who pay higher interest due to credit risk.

CLO and Structured Credit ETFs (7.2%–7.6%)

• VanEck AA-BB CLO ETF (CLOB) – 7.20%
• BondBloxx Private Credit CLO ETF (PCMM) – 7.41%
• Panagram BBB-B CLO ETF (CLOZ) – 7.58%

These funds buy collateralized loan obligations (CLOs): structured products backed by pools of corporate loans.

CLO tranches (AA through B) carry higher yields but also risk if credit defaults rise.

ETFs make this more complex market accessible, but distributions move with loan market stress levels.

Senior Loan and Floating-Rate ETFs (7.1%–7.8%)

• Eaton Vance Floating-Rate (EVLN) – 7.21%
• Franklin Senior Loan (FLBL) – 7.18%
• Virtus Seix Senior Loan (SEIX) – 7.18%
• SPDR Blackstone Senior Loan (SRLN) – 7.83%

Senior loans pay floating interest rates tied to benchmarks like SOFR, which is why yields rise when rates are higher.

They sit higher in the capital structure than bonds, but still carry credit risk.

ETFs in this space pass through loan interest payments, giving investors floating-rate exposure with relatively stable payouts.

Short- and Intermediate-Term High Yield ETFs

• PIMCO 0–5 Year High Yield (HYS) – 7.21%
• SPDR Bloomberg Short Term High Yield (SJNK) – 7.21%
• PGIM Short Duration High Yield (PSH) – 7.30%

These funds focus on shorter-duration junk bonds.

The appeal is lower interest-rate sensitivity compared to long-term high yield, though they still carry default risk.

Yields are slightly lower than long-duration counterparts but more stable in rising rate environments.

LifeX Longevity and Term Income Funds (7.2%–7.9%)

• 2053 Longevity Income (LFAL) – 7.20%
• 2052 Longevity Income (LFAK) – 7.41%
• 2051 Longevity Income (LFAJ) – 7.65%
• 2050 Longevity Income (LFAI) – 7.91%
• 2045 Term Income (LDRR) – 7.31%

The LifeX family structures long-term income funds with maturity dates decades into the future.

These are designed as “defined horizon” products – i.e., they want to provide predictable payouts for retirement planning.

They blend bonds and derivatives to hit distribution targets, though liquidity is limited.

Covered Call / Equity Premium ETFs (7.3%–7.7%)

• Global X Dow 30 Covered Call (DJIA) – 7.35%
• Global X SuperDividend U.S. (DIV) – 7.35%
• Global X Information Technology Covered Call (TYLG) – 7.55%
• NEOS S&P 500 Hedged Equity (SPYH) – 7.70%
• JPMorgan Equity Premium Income (JEPI) – 7.58%

These operate like the higher-yielding buywrite funds seen earlier but deliver lower yields since they’re tied to broad indexes or sectors.

The strategy remains the same: hold equities, write covered calls, and distribute the premiums.

Alternative Credit, REITs, and Specialty Funds

• Global X Variable Rate Preferred (PFFV) – 7.19% – invests in floating-rate preferred stocks.
• InfraCap REIT Preferred (PFFR) – 7.77% – invests in REIT-issued preferred shares, passing through fixed income–like yields.
• Angel Oak Mortgage-Backed Securities (MBS) – 7.37% – invests in mortgage-backed securities.
• Global X Alternative Income (ALTY) – 7.56% – multi-asset exposure to alternative yield sources (MLPs, REITs, BDCs).
• Saba Closed-End Funds (CEFS) – 7.45% – invests in closed-end funds trading at discounts, capturing their distributions.
• Sabine Royalty Trust (SBR) – 7.53 – a royalty trust paying out energy royalties rather than option premiums. Closer to a traditional dividend stock.
• Calamos CEF Income & Arbitrage (CCEF) – 7.96% – another CEF fund, combining arbitrage strategies with income capture.
• Invesco CEF Income Composite (PCEF) – 7.88% – holds a basket of income-generating closed-end funds.

These funds give investors exposure beyond bonds and equities, targeting preferred shares, closed-end funds, and mortgage securities.

They diversify sources of yield but often come with liquidity or credit risk trade-offs.

Multi-Sector and Flexible Credit ETFs (8% and below)

• Capital Group Multi-Sector Income (CGMS) – 8.06% – invests across bonds, loans, and securitized products.
• Nicholas Fixed Income Alternative (FIAX) – 8.06% – actively managed alternative credit exposure.
• Aptus Enhanced Yield (JUCY) – 8.06% – active ETF seeking diversified yield sources.
• Polen High Income (PCHI) – 8.02% – a smaller actively managed fund.
• Infrastructure Capital Bond Income (BNDS) – 8.00% – focuses on bond-related income with leverage.

These funds show how active multi-sector management aims to maintain ~8% yields by shifting across bonds, loans, and structured products.

Key Takeaway

This 7%–8% yield bracket is dominated by credit-oriented ETFs:

1. Traditional high-yield bond funds (SPHY, SCYB, FLHY) delivering coupons from corporate borrowers.
2. Senior loan and floating-rate funds (SRLN, EVLN, FLBL) giving floating exposure in higher-rate conditions.
3. Structured credit and CLO funds (CLOB, CLOZ, PCMM) for investors reaching further into complex credit markets.
4. Closed-end fund ETFs and hybrids (CEFS, PCEF, CCEF) harvesting income from other income funds.
5. Covered call equity premium funds (JEPI, DJIA, DIV) providing steady but lower-volatility distributions.

Unlike the earlier extreme-yield ETFs, this group looks closer to the traditional high-income universe, with more modest but likely steadier payouts tied to debt markets.

Core High-Yield Corporate Bond ETFs (6.7%–6.9%)

• iShares Broad USD High Yield Bond (USHY) – 6.75%
• SPDR Portfolio High Yield (SPHY) – 7.43%
• Eaton Vance High Yield (EVHY) – 6.82%
• Principal Active High Yield (YLD) – 6.76%
• John Hancock High Yield (JHHY) – 6.96%
• Franklin High Yield Corporate (FLHY) – 7.27% 

These funds invest in diversified baskets of below-investment-grade corporate debt, collecting coupon income.

Yields vary slightly depending on maturity, credit quality, and whether the approach is passive index tracking or active management.

Senior Loan ETFs (6.8%–7.1%)

• Invesco Senior Loan (BKLN) – 6.83%
• PIMCO Senior Loan Active (LONZ) – 7.08%
• Franklin Senior Loan (FLBL) – 7.18% 
• Virtus Seix Senior Loan (SEIX) – 7.18% 

These invest in floating-rate leveraged loans issued by companies, typically senior in the capital structure.

Because they reset with interest rates, yields move with short-term rates.

They offer some protection against rising rates, but carry credit risk.

BulletShares and Term-Dated High Yield ETFs (6.7%–7.1%)

These ETFs mimic individual bonds with maturity dates.

They hold a portfolio of high-yield bonds expiring near the fund’s target year and liquidate at maturity.

Investors use them to build “bond ladders” with defined cash flow schedules.

CLO and Structured Credit ETFs (7.0%–7.1%)

• iShares BBB-B CLO Active (BCLO) – 7.12%
• TCW Multisector Credit Income (MUSE) – 7.12%
• Goldman Sachs Access High Yield (GHYB) – 7.10%
• BondBloxx Private Credit CLO (PCMM) – 7.41% 

These funds focus on collateralized loan obligations (CLOs) or structured baskets of leveraged loans.

CLOs tend to deliver higher yields but are complex, with tranches that behave differently in credit downturns.

Emerging Markets High Yield ETFs (6.9%–7.1%)

• Vanguard Emerging Markets Bond (VWOB) – 6.99%
• VanEck Emerging Markets High Yield (HYEM) – 6.95%
• BondBloxx JPM USD Emerging Markets (XEMD) – 7.10%
• Virtus Stone Harbor Emerging Markets (VEMY) – 7.10%

These ETFs give exposure to emerging-market sovereign and corporate bonds, which typically yield more than US credit due to higher default and currency risk.

Performance can swing with global risk sentiment and dollar strength.

Preferred and Hybrid Income ETFs (6.8%–7.2%)

• Global X Variable Rate Preferred (PFFV) – 7.19%
• InfraCap REIT Preferred (PFFR) – 7.77%
• iShares Interest Rate Hedged High Yield (HYGH) – 6.88%
• ProShares High Yield Interest Rate Hedged (HYHG) – 6.88%

These products combine high-yield bond exposure with interest rate hedges (short Treasury futures or swaps) to reduce duration risk.

Others target preferred shares with floating coupons, producing steady income streams.

Covered Call / Equity Premium ETFs (around 7%)

• Global X Russell 2000 Covered Call (RYLG) – 7.04%
• Strategy Shares Nasdaq 7 HANDL (HNDL) – 6.98%
• Parametric Equity Premium Income (PAPI) – 6.86%
• FT Vest U.S. Equity Buffer & Premium (XIJN) – 6.92%

These sit at the lower-yielding end of the covered call spectrum.

They generate income by writing options on indexes (Russell 2000, Nasdaq 100, or S&P 500), distributing the premiums as yield.

Alternative & Specialty Funds (6.7%–7%)

• Simplify Kayne Anderson Energy (KNRG) – 6.99% – invests in energy infrastructure with an options overlay.
• InfraCap Small Cap Income (SCAP) – 6.99% – equity-based income from small-cap holdings.
• Boston Pizza Royalties Income (BPZZF) – 6.77% – a royalty trust rather than a typical ETF, distributing franchise royalties.
• Angel Oak High Yield Opportunities (AOHY) – 7.09% – active high-yield fund with a mortgage and structured credit tilt.
• Harbor Alpha High Yield (SIHY) – 7.04% – actively managed bond selection with alpha-seeking overlays.
• LHA Risk-Managed Income (RMIF) – 7.05% – tactical income fund blending credit and options with risk hedges.

Key Takeaway

At the 6.7%–7% yield level, we are firmly in the traditional fixed income ETF space:

• Core high-yield bonds and senior loans deliver stable income from corporate credit.
• Term-dated BulletShares and iBonds allow investors to build bond ladders.
• CLO and structured funds push for slightly higher payouts but add complexity.
• Emerging market credit raises yield through geopolitical and currency risk. Typically you earn 2-3% more in emerging market debt than developed market debt (though it can be more or less).
• A handful of equity premium and specialty funds sit here too, but the bulk of this yield group reflects the core high-yield bond and loan universe.

Core High-Yield Bond ETFs (6.5%–6.7%)

• SPDR Bloomberg High Yield Bond (JNK) – 6.68%
• Invesco High Yield Bond Factor (IHYF) – 6.65%
• TCW High Yield Bond (HYBX) – 6.65%
• Fidelity Enhanced High Yield (FDHY) – 6.66%
• Columbia U.S. High Yield (NJNK) – 6.57%
• iShares High Yield Active (BRHY) – 6.57%

These are large, diversified funds that invest across the US high-yield corporate bond market.

JNK and similar ETFs track broad junk bond indexes, while others (FDHY, BRHY, HYBX) use active management to tilt toward higher-quality issuers or improve risk-adjusted returns.

The yields reflect corporate credit spreads above Treasuries.

Term-Dated and Laddering High Yield ETFs

• iShares iBonds 2030 High Yield (IBHJ) – 6.61%
• iShares iBonds 2032 High Yield (IBHL) – 6.54%
• Invesco BulletShares 2030 High Yield (BSJU) – 6.64%
• iShares iBonds 1–5 Year High Yield (LDRH) – 6.61%

These ETFs act like bond ladders in ETF form.

Each has a fixed maturity year, winding down as bonds mature and principal is returned.

They’re designed for investors who want more control over cash flow timing while still accessing the high-yield space.

Senior Loan ETFs (6.5%–6.6%)

• First Trust Senior Loan Fund (FTSL) – 6.58%
• Virtus Newfleet Short Duration High Yield (VSHY) – 6.54%

These invest in floating-rate leveraged loans.

FTSL is one of the larger, actively managed loan ETFs.

Because the loans reset based on short-term rates, yields rise in higher-rate environments, though credit risk remains.

Alternative & Structured Credit Funds

• Obra Opportunistic Structured Products (OOSP) – 6.56% – invests in structured credit like asset-backed securities and CLOs, aiming for yield with diversification beyond corporate bonds.
• First Trust Structured Credit Income (SCIO) – 6.64% – similar focus on structured finance products, with an active management layer.
• SPDR ICE Preferred Securities (PSK) – 6.64% – invests in preferred shares, which trade like hybrids between stocks and bonds, often with fixed dividends.
• SRH REIT Covered Call (SRHR) – 6.49% – combines real estate exposure with a covered call strategy, producing income from both dividends and option premiums.

Multi-Sector & Flexible Income Funds (6.5%–6.6%)

• Janus Henderson Income (JIII) – 6.54% – multi-sector bond fund with flexibility to allocate between investment-grade, high-yield, and securitized credit.
• Capital Group Core Plus Income (CGCP) – 6.52% – broad fixed income fund investing in Treasuries, corporates, and emerging market bonds, using active allocation.
• Cullen Enhanced Equity Income (DIVP) – 6.67% – equity-focused with an income overlay, providing a hybrid approach to yield.

These funds diversify across sectors and geographies to sustain distributions, trading off higher headline yields for somewhat lower volatility.

LifeX Longevity and Term Income Funds (6.5%–6.7%)

• 2056 Longevity Income (LFAQ) – 6.66%
• 2057 Longevity Income (LFAR) – 6.52%

These products are structured for very long-term payout schedules, often aiming at retirement-targeted cash flows.

They hold a mix of bonds and derivatives to maintain income over multiple decades.

Emerging Market and Global High Yield (6.6% range)

• Janus Henderson Emerging Markets Debt (JEMB) – 6.64%
• Nuveen ESG High Yield Corporate (NUHY) – 6.63%
• iShares J.P. Morgan Broad USD Emerging Markets (BEMB) – 6.63%
• Invesco Global ex-U.S. High Yield (PGHY) – 6.97%

These funds add diversification by moving into non-US credit markets.

They typically yield more than US-only funds due to higher risk premiums tied to political instability, weaker currencies, and lower liquidity.

Specialty Products

• Grayscale Bitcoin Premium Income (BPI) – 6.61% – unlike bond funds, this one uses options and derivatives tied to Bitcoin exposure to generate income. Its yield reflects crypto market volatility rather than interest or dividends.
• WisdomTree U.S. High Yield (QHY) – 6.49% – another broad corporate junk bond ETF, similar to JNK or USHY.

Key Takeaway

This 6.5%–6.7% bracket reflects the heart of traditional high-yield investing:

• Broad junk bond ETFs like JNK and USHY dominate.
• Senior loan funds provide floating-rate income alternatives.
• Structured credit and preferred ETFs offer diversification but with niche risks.
• A few specialty products (like Grayscale’s Bitcoin-linked income ETF) add volatility-driven yield at the margins.

At this stage, tihngs are getting more “normal.”

Yields are more stable and comparable to mainstream high-yield bonds and leveraged loans, rather than the extreme option-income products higher up the list.

BondBloxx USD High Yield Bond ETF (XHYC) – 6.48%

This one focuses on junk bonds in the U.S., mostly BB and B-rated debt.

The yield comes from the coupon payments on those bonds. It’s steady income while defaults stay low, but the downside is clear: when the economy slows, junk bonds are the first to feel stress.

On top of that, the fund is still relatively small, which makes it less liquid than giants like HYG or JNK.

Nuveen Preferred and Income ETF (NPFI) – 6.48%

Here you’re getting exposure to preferred stock, mainly from banks and insurers.

These are hybrid securities that sit above common stock but below bonds.

The income is from preferred dividends, which tend to be reliable unless the financial sector runs into trouble.

They’re also rate-sensitive, so rising interest rates can hurt the price, even if the income keeps flowing.

FT Vest U.S. Equity Buffer & Premium Income ETF (XIDE) – 6.47%

This one’s a bit different. It’s an options-based strategy that sells calls and uses buffers to limit downside.

The yield comes mostly from option premiums, not dividends.

That means income looks good when market volatility is decent, but it’s not tied to companies paying out cash.

It’s safer than plain equities in downturns but has capped upside when the market rallies.

Invesco Financial Preferred ETF (PGF) – 6.47%

This fund is entirely focused on financial institution preferred stock.

The income comes from dividends paid by big banks.

That makes it dependable most of the time, but very concentrated.

If the financial sector goes through stress, the whole fund suffers.

Think of it as a concentrated version of NPFI.

NEOS Enhanced Income 20+ Year Treasury ETF (TLTI) – 6.46%

Probably the “safest” on this list in terms of credit risk. It owns long-term Treasuries, then sells options on them for extra yield.

The income comes partly from Treasury interest and partly from those option premiums. You won’t lose income because of default, but the fund’s value can swing a lot with interest rates and volatility.

iShares iBonds 2028 Term High Yield Bond ETF (IBHH) – 6.45%

This one is a target-date junk bond fund. All the bonds mature in 2028, and the ETF shuts down at that point.

If you’re reading this in a future year from when this was written, there will be funds of future years likely available (especially from a large, stable franchise like iShares, which is managed by BlackRock).

You’re collecting coupons from junk bonds until then.

The good part is the maturity date makes it more predictable than perpetual junk ETFs.

The risk is simple: defaults between now and 2028/the target year.

Tidal Trust III – Rockefeller ETF (RMOP) – 6.45%

An actively managed multi-asset income ETF. It mixes corporate bonds, preferreds, and other structured products.

The yield comes from all those positions.

The challenge here is that it’s a smaller, newer fund, so you’re relying heavily on management skill.

There’s less transparency compared to bigger index funds.

VanEck Fallen Angel High Yield Bond ETF (ANGL) – 6.44%

This one specializes in “fallen angels” — bonds that used to be investment grade but got downgraded.

Historically, these have performed better than traditional junk because the companies were once higher quality.

The yield comes from bond coupons, and the risk is lower than typical high yield, though still cyclical.

SPDR Loomis Sayles Opportunistic Bond ETF (OBND) – 6.43%

An actively managed bond ETF where managers can go anywhere: corporates, Treasuries, even emerging markets.

Yield comes from bond coupons and opportunistic trades.

Loomis Sayles is a well-regarded bond shop, but the outcome depends on manager skill.

It’s flexible, which can be good or bad depending on timing.

iShares J.P. Morgan EM High Yield Bond ETF (EMHY) – 6.40%

This one goes straight into emerging-market junk bonds. Yield comes from sovereign and corporate debt in developing countries.

The risk here is high — currency swings, political problems, and default risk are all part of the package. The high yield is basically danger pay.

iShares US & Intl High Yield Corp Bond ETF (GHYG) – 6.38%

This is a global high yield corporate bond fund. You’re collecting coupons from US and international junk bonds.

More diversified than EMHY, but still sensitive to global credit cycles. A worldwide recession would hit it hard.

LifeX 2058 Longevity Income ETF (LFAU) – 6.38%

This is a niche ETF focused on retirement income themes.

The income likely comes from a mix of bonds and options.

The problem? It’s tiny — i.e., less than $1 million in assets.

That makes it illiquid and unstable.

Plus, the yield is engineered.

iShares iBonds 2027 Term High Yield Bond ETF (IBHG) – 6.37%

Same structure as IBHH, except it matures a year earlier, in 2027.

You’re getting junk bond coupons until then, then the fund closes.

Predictable in concept, but defaults remain the key risk.

Xtrackers Short Duration High Yield ETF (SHYL) – 6.37%

This one focuses on short-term junk bonds. Yield comes from their high coupons.

Because they mature sooner, they’re less sensitive to interest rate changes than long-term junk.

Still, they’re junk — so if the economy goes south, defaults are the problem.

Invesco S&P 500 BuyWrite ETF (PBP) – 6.36%

This fund owns the S&P 500 and writes covered calls on it.

The yield comes from option premiums plus dividends.

You’ll get steady income, but you give up some upside if the market runs higher.

It’s a middle-ground choice: safer income than pure stocks, but less growth.

Key Takeaways for This Group

• Steadier income picks: TLTI (Treasuries with options), IBHH/IBHG (maturing junk ETFs), ANGL (fallen angels).
• Middle ground: NPFI/PGF (preferreds), XIDE/PBP (options-income strategies).
• Riskier income: XHYC, GHYG, EMHY (junk and EM debt), RMOP/OBND (manager skill plays), LFAU (too small to trust).

Okay, we’re going to cap off this article at ~6% yields, so let’s wrap this up…

iShares Preferred and Income Securities ETF (PFF) – 6.20% Yield

This is the biggest preferred stock ETF in the world, with nearly $14B in assets.

It owns preferred shares issued by banks, utilities, and large companies.

Preferreds are a hybrid between stocks and bonds, paying steady dividends but with more risk than bonds since they can lose value if rates rise or the issuing company struggles.

Income is steady, but prices can swing when interest rates move.

Janus Henderson B-BBB CLO ETF (JBBB) – 6.17% Yield

This fund invests in CLOs (collateralized loan obligations) that bundle together loans to businesses with weaker credit (rated B to BBB).

These are floating-rate instruments, so they pay more when interest rates rise. Income comes from loan interest payments.

They’re riskier than Treasuries or investment-grade bonds because defaults could eat into payouts.

Nuveen AA-BBB CLO ETF (NCLO) – 6.17% Yield

Similar to JBBB, but this one sticks with slightly safer tranches of CLOs, rated AA to BBB.

That means lower credit risk than the Janus fund but still dependent on loan performance.

It’s a balance between yield and safety, with less default risk but still vulnerable in recessions.

F/m High Yield 100 ETF (ZTOP) – 6.16% Yield

This ETF goes after the highest-yielding corporate bonds from 100 issuers.

It’s aggressive because the focus is yield, not safety.

The income comes directly from the interest on junk bonds.

Expect good payouts but high exposure to defaults if the economy slows.

Invesco Emerging Markets Sovereign Debt ETF (PCY) – 6.15% Yield

Here you’re buying government bonds from emerging markets like Brazil, Mexico, and Indonesia.

Yields are high because these countries pay more to borrow. Income comes from sovereign bond coupons.

Risk comes from currency swings, political instability, or debt crises.

WisdomTree Interest Rate Hedged High Yield ETF (HYZD) – 6.14% Yield

This one’s clever: it owns high-yield corporate bonds but hedges interest rate risk using Treasury futures.

That means if rates rise, it doesn’t lose as much value.

The yield comes from junk bond coupons, but the hedge reduces rate-driven price drops.

Still exposed to credit defaults.

LifeX 2060 Longevity Income ETF (LFAW) – 6.14% Yield

LifeX again. It’s a very niche fund aimed at longevity income planning.

It mixes bonds and other fixed income designed to last until 2060, targeting people who want retirement payouts that align with their future.

Income comes from long-term bonds. Risk is interest rate sensitivity, since it’s a very long-dated portfolio.

Ocean Park High Income ETF (DUKH) – 6.13% Yield

This is a boutique high-yield ETF with a tiny asset base.

It blends high-yield bonds, loans, and sometimes structured credit.

Income comes from interest, but because it’s small, it may trade with less liquidity and higher costs.

Riskier due to its narrow size and exposure.

DoubleLine Multi-Sector Income ETF (DMX) – 6.11% Yield

Run by Jeffrey Gundlach’s DoubleLine, this is an active fund that hunts across many bond sectors: mortgages, high yield, Treasuries, and even emerging markets.

The idea is diversification while chasing yield. Income comes from bond coupons across sectors. Active management adds some flexibility, but also more manager risk.

iShares iBonds 2031 Term High Yield ETF (IBHK) – 6.11% Yield

This ETF holds a portfolio of junk bonds that all mature around 2031.

Unlike perpetual ETFs, this one actually “ends” and returns capital at maturity, like a bond ladder.

Income comes from high-yield corporate bond coupons.

Safer than a rolling junk bond fund since you know your end date.

Academy Veteran Impact ETF (VETZ) – 6.10% Yield

This ETF invests in bonds that finance veteran-owned businesses and community development projects.

The yield comes from municipal and corporate debt, with a social mission angle.

Risk is moderate, but returns depend on niche projects, so diversification is narrower.

Invesco BulletShares 2026 High Yield ETF (BSJQ) – 6.10% Yield

Like IBHK, this is a target-date junk bond ETF that matures in 2026.

You collect interest until maturity, then the fund winds down and pays out. Safer for planning because you know when your money comes back.

Risk is still tied to defaults in the next couple of years.

Global X SuperIncome Preferred ETF (SPFF) – 6.10% Yield

This ETF invests in a small basket of preferred stocks, mostly from banks and insurers.

It’s a high-yielding but concentrated portfolio.

Income is steady, but price swings are sharper because of its narrow holdings.

Higher risk than PFF because it’s less diversified.

AAM Low Duration Preferred and Income Securities ETF (PFLD) – 6.09% Yield

This one focuses on shorter-term preferred securities, meaning less exposure to rate hikes compared to PFF or SPFF. Income comes from preferred dividends.

Safer on interest rate sensitivity, but still carries credit risk from the issuers.

Putnam ESG High Yield ETF (PHYD) – 6.08% Yield

This is a high-yield bond ETF but with an ESG (environmental, social, governance) screen.

It avoids companies that don’t meet sustainability standards.

Income comes from junk bond coupons.

Risk is the same as other high-yield funds.

ESG rules may limit diversification.

Conclusion

The ETFs on this list aren’t suited for most traders/investors, as many rely on complex strategies (a lot of covered call structures), high volatility, or concentrated risk that can be hard to manage long term.

Still, they serve a niche for those seeking specialized income streams or exposure beyond traditional bonds and equities. (Almost all these still have high correlations to traditional stock and bond markets.)

At the very least, they expand awareness of what’s available in today’s market.

Always remember that elevated yields often come with equally elevated risks (that may not be compensated adequately).

Do your due diligence, understand how each fund works, and consult a qualified financial advisor if you need guidance tailored to your own goals, risk tolerance, time horizons, and circumstances.