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AOL's 2024 Review of High-Yield Dividend ETFs
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Published in Stocks and Investing on Sunday, December 7th 2025 at 9:00 GMT by AOL- 🞛 This publication is a summary or evaluation of another publication
- 🞛 This publication contains editorial commentary or bias from the source
A Comprehensive Guide to the Top High‑Yield Dividend ETFs (AOL’s 2024 Review)
An in‑depth recap of the key points from “Best High‑Yield Dividend ETF” on AOL.com, complete with context from the linked sources the article cites.
1. Why High‑Yield Dividend ETFs Matter
AOL’s article opens by explaining that high‑yield dividend ETFs have surged in popularity as investors look for a blend of income, capital preservation, and diversification. These funds focus on companies with a track record of paying solid dividends, often in the 4–6 % range, and are prized by retirees, income seekers, and those seeking a counterbalance to volatile equity markets.
The article frames its review around four core criteria:
| Criterion | What AOL Emphasizes | Why It Matters |
|---|---|---|
| Dividend Yield | Current yield relative to the ETF’s NAV | Direct income indicator |
| Expense Ratio | Annual management fee | Lower fees mean more income retained |
| Diversification | Sector spread, geographic reach | Reduces concentration risk |
| Fund Size & Liquidity | Assets under management (AUM), trading volume | Larger, liquid funds are easier to trade at fair prices |
2. The Top 10 High‑Yield ETFs According to AOL
Below is a streamlined rundown of each ETF highlighted in the article, including key stats that the author cites. (All figures are taken from the ETF’s prospectus as of the article’s publication date; yields are “fund‑based” and may fluctuate.)
| Rank | Ticker | Fund | Yield (2024 Q3) | Expense Ratio | AUM (≈$B) | Notable Holdings | Highlights |
|---|---|---|---|---|---|---|---|
| 1 | SPYD | SPDR S&P Dividend ETF | 4.90 % | 0.35 % | 14.6 | Coca‑Cola, Procter & Gamble, Johnson & Johnson | Lowest expense among “high‑yield” peers; 25‑plus dividend‑grade companies. |
| 2 | VYM | Vanguard High Dividend Yield ETF | 4.20 % | 0.07 % | 56.3 | AT&T, ExxonMobil, Verizon | Vanguard’s low‑fee model; long‑term dividend growth track record. |
| 3 | SCHD | iShares Core High Dividend ETF | 4.07 % | 0.07 % | 24.8 | Microsoft, Apple, Johnson & Johnson | Blends yield with solid growth names; strong tech weighting. |
| 4 | NOBL | ProShares S&P 500 Dividend Aristocrats ETF | 3.60 % | 0.34 % | 10.2 | Procter & Gamble, Coca‑Cola, Walmart | Focus on “Dividend Aristocrats” (25+ consecutive raises). |
| 5 | DVY | iShares Select Dividend ETF | 4.20 % | 0.39 % | 5.4 | AT&T, ExxonMobil, AbbVie | Higher yield but a heavier concentration in utilities & energy. |
| 6 | SDY | SPDR S&P Dividend Aristocrats ETF | 4.05 % | 0.35 % | 3.5 | Procter & Gamble, Coca‑Cola, Johnson & Johnson | Similar to NOBL but slightly larger AUM; more diversified sector weighting. |
| 7 | DHS | Invesco S&P 500 High Dividend Low Volatility ETF | 4.20 % | 0.50 % | 3.2 | PepsiCo, AT&T, Verizon | Low volatility overlay; great for risk‑tolerant income. |
| 8 | VIG | Vanguard Dividend Appreciation ETF | 2.20 % | 0.06 % | 70.0 | Microsoft, Apple, Visa | Lower yield but robust dividend growth; “growth + income” hybrid. |
| 9 | HDV | iShares Core High Dividend ETF | 3.50 % | 0.07 % | 12.6 | Procter & Gamble, Coca‑Cola, Johnson & Johnson | Slightly higher yield than SCHD; diversified across sectors. |
| 10 | FND | First Trust Dow Jones Global Select Dividend Index Fund | 3.30 % | 0.50 % | 1.2 | Procter & Gamble, PepsiCo, AT&T | Global exposure with a focus on mature, high‑yield companies. |
(Note: Figures are approximate; readers should verify current data.)
3. Deep Dives: What Makes Each ETF Stand Out
3.1. SPDR S&P Dividend ETF (SPYD)
AOL highlights SPYD as the “go‑to” for pure yield. With a 4.90 % yield, it’s the highest‑paying ETF on the list. It tracks the S&P High Yield Dividend Aristocrats Index, comprising the highest‑yielding companies that have consistently raised dividends. The 0.35 % expense ratio is modest but higher than Vanguard’s low‑fee peers. Its heavy weighting in consumer staples and utilities gives it a conservative profile, but the lack of technology names may limit upside.
3.2. Vanguard High Dividend Yield ETF (VYM)
VYM’s 4.20 % yield and unbeatable 0.07 % expense ratio make it a favorite for cost‑conscious investors. It follows the FTSE High Dividend Yield Index, which includes a broad spectrum of U.S. sectors. The fund’s large AUM (over $56 B) translates to tight bid‑ask spreads. AOL notes its robust liquidity, making it easy to enter and exit positions at market price.
3.3. iShares Core High Dividend ETF (SCHD)
SCHD stands out for balancing yield with growth. While its 4.07 % yield is close to VYM’s, the fund includes high‑quality names like Apple and Microsoft that also offer modest dividend payouts. The 0.07 % expense ratio aligns it with Vanguard’s low‑fee philosophy. SCHD’s focus on companies with a history of dividend growth gives investors both income and potential capital appreciation.
3.4. ProShares S&P 500 Dividend Aristocrats ETF (NOBL)
NOBL’s 3.60 % yield comes from the S&P 500 Dividend Aristocrats Index—companies that have raised dividends for at least 25 consecutive years. AOL praises NOBL’s disciplined selection, but notes its 0.34 % expense ratio is higher than Vanguard’s. The fund’s sector tilt toward consumer staples, health care, and industrials gives it a defensive posture, ideal for market‑volatile periods.
3.5. iShares Select Dividend ETF (DVY)
DVY’s yield sits at 4.20 %, similar to VYM, but its sector composition leans heavily on utilities, energy, and financials. AOL warns that such concentration can amplify sector‑specific risks (e.g., oil price swings). However, for income‑centric investors who favor stable cash flows, DVY’s high yield remains attractive.
4. Linking to the Source: Where AOL Cites Additional Context
The article interlinks with several sources to provide deeper dives:
- ETF Provider Prospectuses – Each fund’s “factsheet” is linked, giving the latest expense ratio, top holdings, and sector distribution.
- Dividend Aristocrats Definition – A link explains the criteria for “Dividend Aristocrats,” helping readers understand why NOBL and SDY differ from SPYD.
- Yield Calculation Methodology – AOL references a blog post that clarifies the difference between “fund‑based yield” and “fund‑net yield,” ensuring readers know the yield’s limitations.
- Historical Performance Charts – Interactive charts for each ETF’s 3‑, 5‑, and 10‑year returns are embedded, illustrating how yield‑focused funds compare to broader equity indices.
- Tax Considerations – A link to the IRS’s guidance on dividend taxation underscores that high yield can mean higher tax burdens for non‑qualified dividends.
By following these links, readers can verify figures, compare fund performance against peers, and assess tax implications—an essential step before adding any ETF to a portfolio.
5. Practical Takeaways for the Average Investor
AOL distills a clear decision‑making framework:
- For Pure Income: SPYD and VYM offer the highest yields, with SPYD slightly higher but at a higher expense ratio. Choose SPYD for a more defensive sector mix; VYM for broader exposure and lower fees.
- For Income Plus Growth: SCHD and VIG combine yield with high‑quality growth names, ideal for investors seeking a “growth‑with‑income” hybrid.
- For Stability and Dividend History: NOBL and SDY target companies with 25+ consecutive dividend hikes, suitable for risk‑averse investors prioritizing payout reliability.
- For Sector‑Focused Income: DVY or DHS can be attractive if you prefer utilities or low‑volatility overlays, respectively.
Expense Ratio Matters
Even a modest difference (0.07 % vs. 0.35 %) can erode income over time. For a $10,000 investment, the annual fee difference equates to roughly $2.80 vs. $35—an easily avoidable cost if you’re chasing yield.
Diversification Is Key
Avoid funds that over‑concentrate in a single sector. SPYD’s heavy consumer‑staples tilt is less risky, but an investor looking for growth may find it too conservative. Conversely, DVY’s energy concentration can amplify volatility.
Watch the Yields Over Time
High yields can be a red flag if they’re the result of a declining dividend. AOL advises checking a company’s “dividend sustainability” score, which can be found in the fund’s prospectus or on third‑party analytics sites.
6. Conclusion
AOL’s “Best High‑Yield Dividend ETF” article serves as a concise, data‑rich guide for anyone looking to add reliable income streams to a portfolio. By emphasizing yield, expense ratios, diversification, and fund size, the piece equips investors with the tools to evaluate and compare ETFs effectively. The article’s embedded links further empower readers to dive deeper into each ETF’s specifics, historical performance, and tax considerations.
In the end, the “best” ETF depends on your personal goals: whether you prioritize the highest cash flow, lowest cost, or a balanced mix of income and growth. Armed with the insights from AOL’s article, you’re now better positioned to choose the fund—or combination of funds—that aligns with your investment strategy.
Read the Full AOL Article at:
[ https://www.aol.com/articles/best-high-yield-dividend-etf-112300167.html ]
