Dividend ETFs remain popular among income-focused investors, but some stand out for their higher yields. According to TipRanks’ High Dividend Yield ETFs tool, three funds currently offer yields above 8%: J.P. Morgan Nasdaq Equity Premium Income ETF (JEPQ), Goldman Sachs Nasdaq 100 Core Premium Income ETF (GPIQ), and Global X SuperDividend ETF (SDIV).
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For context, a dividend ETF (Exchange-Traded Fund) is a fund that holds a basket of dividend-paying stocks and trades on an exchange like a regular stock.
Let’s take a look at these ETFs in detail.
J.P. Morgan Nasdaq Equity Premium Income ETF (JEPQ)
J.P. Morgan Nasdaq Equity Premium Income ETF (JEPQ) gives investors exposure to large, well-known Nasdaq companies while aiming for steady income. The ETF carries a 0.35% expense ratio and a beta of 0.98, offering market-like returns with slightly lower risk.
JEPQ offers a 10.54% dividend yield, paying $0.559 per share monthly. The fund holds 94 stocks totaling $36.03 billion in assets. Its top three positions are Nvidia (NVDA), Apple (AAPL), and Alphabet (GOOGL).
Goldman Sachs Nasdaq 100 Core Premium Income ETF (GPIQ)
Goldman Sachs Nasdaq 100 Core Premium Income ETF offers exposure to leading Nasdaq-100 companies while aiming to deliver both growth and income. The ETF has a dividend yield of about 9.93% and pays roughly $0.432 per share each month. It also has a relatively low expense ratio of 0.29%, helping investors keep more of their returns.
However, with a beta of 1.12, the fund tends to be more volatile than the broader market, meaning it can see bigger price swings.
In terms of holdings, GPIQ gains from the strong performance of top tech companies. Currently, GPIQ holds 103 stocks with total assets worth $3.36 billion. Its top 3 holdings are NVDA, AAPL, and Microsoft (MSFT).
Global X SuperDividend ETF (SDIV)
Global X SuperDividend ETF focuses on high-yield dividend stocks from around the world, aiming to provide consistent monthly income. The ETF is known for its elevated yield, but it also carries higher risk, as many of its holdings are in slower-growth or more volatile sectors. The fund tracks the Solactive Global SuperDividend Index.
SDIV has a high dividend yield of 8.84%, providing investors with strong passive income potential. It pays dividends per share of $0.19 monthly. Meanwhile, the fund carries an expense ratio of 0.58%.
Looking at the holdings, the ETF has 102 stocks with total assets of $1.27 billion.