8 Best Income ETFs to Buy in 2024

For those looking to turn their retirement portfolios into self-structures annuities and live off the monthly payments, here's a way to do that.  

MARCH 8, 2024 Invested Advice, rankings and stock market news for investors.

Happy Friday, investors! Stocks rise on momentum from the Fed's rate-cut news, and embattled NYCB gets a life raft. Highlights of today's newsletter include our market insights plus these new articles: 8 Best Income ETFs to Buy in 2024 6 of the Best AI ETFs to Buy Now 9 Best Cheap Stocks to Buy Under $5 How Much Would $10,000 Invested in Nvidia Stock 20 Years Ago Be Worth Today? TODAY'S FEATURED STORY 8 Best Income ETFs to Buy in 2024 When reviewing income exchange-traded funds, or ETFs, investors should consider the fund's historical performance, expense ratio, yield, distribution schedule and management. Each of these factors can help investors make better decisions. For instance, a high-yield income ETF may look attractive, but if that fund has an inconsistent distribution schedule and poor historical returns, it may not be the right choice. Each researched metric can offer more context. Overall, though, investors have a wide variety of high-quality income ETFs to choose from. These top income ETFs span a nice variety of holdings, and each balances high yield with solid returns: iShares International Select Dividend ETF (ticker: IDV). The iShares International Select Dividend ETF prioritizes high-dividend stocks in non-U.S. developed markets. The fund has a 0.51% expense ratio and a generous 5.9% 30-day SEC yield. The 12-month trailing yield is even higher, at 6.6%. IDV has returned an annualized 10% over the past 15 years, but in the past five years its return averages to about 4%. So the high-yield component is mostly what income investors are after with this one. Schwab U.S. Dividend Equity ETF (SCHD). The Schwab U.S. Dividend Equity ETF is a low-cost fund, with a 0.06% expense ratio, and it's diversified across 104 securities. The fund consists of large-cap companies that value investors would appreciate. The fund's top four holdings are Broadcom Inc. (AVGO), AbbVie Inc. (ABBV), Home Depot Inc. (HD) and Merck & Co. (MRK), showing some variety in its holdings. SCHD has a 30-day SEC yield of 3.5% and a trailing-12-month yield of 3.4%. The fund has returned an annualized 12.6% over the past five years as of March 6. Click here to continue reading.   INCOME ETFEXPENSE RATIOTRAILING-12-MONTH YIELD *iShares International Select Dividend ETF (ticker: IDV)0.51%6.6% Schwab U.S. Dividend Equity ETF (SCHD)0.06%3.4% SPDR S&P Dividend ETF (SDY)0.35%2.6% Vanguard High Dividend Yield ETF (VYM)0.06%3% WisdomTree U.S. Quality Dividend Growth Fund (DGRW)0.28%1.7% iShares iBoxx $ High Yield Corporate Bond ETF (HYG)0.49%5.8% JPMorgan Equity Premium Income ETF (JEPI)0.35%7.9% Vanguard Dividend Appreciation Index Fund ETF (VIG)0.06%1.8%