The ongoing geopolitical tensions in the Middle East and high oil prices continue to impact global stock markets. Given this uncertain backdrop, investors seeking stable income can consider adding bond exchange-traded funds (ETFs) to their portfolios. Bond ETFs offer the benefit of diversification at low cost. Here, we will look at three bond ETFs with at least 4% dividend yields: Vanguard Short-Term Corporate Bond ETF (VCSH), SPDR Portfolio Aggregate Bond ETF (SPAB), and JPMorgan Core Plus Bond ETF (JCPB).
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TipRanks’ ETF Comparison Tool gives a snapshot of these ETFs across key metrics.
Vanguard Short-Term Corporate Bond ETF (VCSH)
The VCSH ETF tracks the Bloomberg U.S. 1-5 Year Corporate Bond Index. It invests primarily in high-quality (investment-grade) corporate bonds, with a dollar-weighted average maturity of 1 to 5 years. The VCSH ETF allows investors to benefit from stability and potential income while mitigating interest rate risk generally associated with longer-duration bonds.
Interestingly, the VCSH ETF has paid about $3.501 per share in dividends over the past year. It offers a dividend yield of 4.43%.
SPDR Portfolio Aggregate Bond ETF (SPAB)
The SPAB ETF tracks the Bloomberg U.S. Aggregate Bond Index. It provides broad, diversified exposure to U.S. dollar-denominated investment-grade bonds, including government bonds, corporate bonds, mortgage pass-through securities, commercial mortgage-backed securities, and asset-backed securities.
The SPAB ETF has paid $1.024 per share in dividends over the past year. It offers a dividend yield of 4.01%.
JPMorgan Core Plus Bond ETF (JCPB)
The JCPB ETF balances its holdings across bonds of various durations – short, intermediate, and long-term. Such strategic allocation seeks to optimize returns while managing interest rate risk. By investing in a variety of corporate, government, and mortgage-backed securities, JCPB seeks to provide investors with a core bond exposure and the potential for enhanced returns.
With dividends of more than $2.324 per share paid over the past year, the JCPB ETF offers a yield of 4.95%.
