3 Bond ETFs with Attractive Dividend Yields for Income-Seeking Investors

Bond exchange-traded funds (ETFs) are preferred by several income-seeking investors as they provide regular income, are affordable, and help diversify their portfolios. Here, we will look at three bond ETFs offering attractive yields: Vanguard Total Corporate Bond ETF (VTC), Strategy Shares Gold-Hedged Bond ETF (GOLY), and DoubleLine Opportunistic Bond ETF (DBND). Using TipRanks’ ETF Comparison Tool, let’s look at how these three ETFs stack up against each other across key metrics.

• Vanguard Total Corporate Bond ETF (VTC): The VTC ETF tracks the Bloomberg U.S. Corporate Bond Index. It offers diversified exposure to investment-grade U.S. corporate bonds, ensuring that underlying bonds maintain high credit quality and provide a more stable income stream while minimizing default risks. The VTC ETF has $1.61 billion in assets under management (AUM) and has a low expense ratio of 0.03%. VTC pays monthly dividends. It offers a dividend yield of 4.78%.

• Strategy Shares Gold-Hedged Bond ETF (GOLY): The GOLY ETF presents a unique investment opportunity by combining a fixed-income security with exposure to precious metals to enhance returns. It invests in U.S. dollar-denominated, domestic and foreign corporate bonds, and U.S. Treasury securities, while also seeking capital appreciation through near-month gold futures contracts listed on the Chicago Mercantile Exchange (CME). It also seeks returns from futures contracts on energy and industrial metals/precious metals commodities by investing in total-return swaps. The GOLY ETF has $192.4 million in assets under management. It offers a dividend yield of 6.92%. Interestingly, this fund has risen by almost 40% over the past year.

• DoubleLine Opportunistic Bond ETF (DBND): The DBND ETF seeks to enhance current income and total return by investing in fixed-income instruments, including U.S. government securities, agency mortgage-backed securities (MBS), non-agency MBS, commercial MBS, global developed credit, international fixed-income instruments, and emerging markets fixed-income instruments. The DBND ETF has nearly $644 million in assets under management. It offers a dividend yield of 4.73%. This fund has risen about 2% over the past year.