Best ETFs to Invest In, According to AI Analyst, 4/23/2026

Several exchange-traded funds (ETFs) provide investors with a steady stream of income coupled with the potential for capital appreciation. TipRanks’ ETF AI Analyst helps pick such attractive ETFs that can generate solid total returns (capital appreciation plus dividends).

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Here, we will look at three such ETFs rated Outperform by the AI Analyst: Schwab US Dividend Equity ETF (SCHD), FT Vest Dow Jones Internet & Target Income ETF (FDND), and JPMorgan Equity Premium Income ETF (JEPI).

Using TipRanks’ Stock Comparison Tool, let’s look at a few metrics of these ETFs.

1. Schwab US Dividend Equity ETF (SCHD) — The SCHD ETF tracks the total return of the Dow Jones U.S. Dividend 100 Index and is suitable for investors seeking exposure to a diverse portfolio of income-generating equities. The ETF AI Analyst has a price target of $34 on the SCHD ETF, implying about 8.4% upside potential (at the time of writing). Additionally, the SCHD ETF offers a dividend yield of about 3.4%. The AI Analyst’s Outperform rating on SCHD is based on holdings like Verizon (VZ) and Merck (MRK).
2. FT Vest Dow Jones Internet & Target Income ETF (FDND) — The FDND ETF tracks the Dow Jones Internet Composite Index and aims to offer current income with a secondary objective of providing capital appreciation. It helps investors capitalize on the high-growth potential of internet-centric businesses, while offering steady dividend payouts. The ETF AI Analyst has a price target of $26 on the FDND ETF, implying about 23% upside potential. Plus, FDND offers a high dividend yield of about 9.2%. The top three holdings of the FDND ETF are Amazon (AMZN), Meta Platforms (META), and Netflix (NFLX).  
3. JPMorgan Equity Premium Income ETF (JEPI) — The JEPI ETF seeks to deliver monthly distributable income while providing equity market exposure with less volatility. It pursues an interesting investment strategy that integrates high-quality, large-cap stocks with options overlay techniques to generate monthly income. The ETF AI Analyst has a price target of $63 on the JEPI ETF, indicating 9.5% upside potential. Plus, JEPI offers a high dividend yield of 8.3%. The Outperform rating on JEPI is supported by holdings in companies such as Walmart (WMT), Johnson & Johnson (JNJ), and Ross Stores (ROST).