3 Best Bond ETFs to Buy for More Than 4% Dividend Yield

The stock market continues to be volatile due to geopolitical tensions in the Middle East. Against this backdrop, investors can consider adding bond exchange-traded funds (ETFs) to their portfolios for a steady stream of income. Bond ETFs offer the benefit of diversification at low cost. Here, we will look at three bond ETFs with more than 4% dividend yields: Vanguard Intermediate-Term Corporate Bond ETF (VCIT), iShares Core Total USD Bond Market ETF (IUSB), and SPDR Portfolio Intermediate Term Corporate Bond ETF (SPIB).

TipRanks’ ETF Comparison Tool gives a snapshot of these ETFs across key metrics.

Vanguard Intermediate-Term Corporate Bond ETF (VCIT)

The VCIT ETF seeks to generate a moderate, sustainable level of current income by investing primarily in high-quality (investment-grade) corporate bonds, with a dollar-weighted average maturity of 5 to 10 years. VCIT tracks the Bloomberg US Aggregate Credit – Corporate Bond (5-10 year) Index.

Interestingly, the VCIT ETF has paid about $3.9021 per share in dividends over the past year. It offers a dividend yield of 4.76%.

iShares Core Total USD Bond Market ETF (IUSB)

The IUSB ETF tracks the Bloomberg U.S. Universal Index and comprises U.S. dollar-denominated investment-grade and high-yield bonds. It helps investors gain access to a diverse range of bonds, including government, corporate, and mortgage-backed securities.

The IUSB ETF has paid more than $1.954 per share in dividends over the past year. It offers a dividend yield of 4.26%.

SPDR Portfolio Intermediate Term Corporate Bond ETF (SPIB)

The SPIB tracks the Bloomberg Intermediate US Corporate Index and offers exposure to U.S. corporate bonds that have a maturity greater than or equal to 1 year and less than 10 years. This ETF is focused on the intermediate niche, balancing between short-term liquidity and long-term yield goals. 

With dividends of more than $1.4863 per share paid over the past year, the SPIB ETF offers a yield of 4.46%.