Top Investors Name 2 High-Yield Dividend ETFs Paying 11% Passive Income for 2026

High-yield dividend ETFs have become a go-to option for investors who want meaningful income without constantly trading or managing individual positions. The appeal is straightforward, as these funds aim to deliver steady cash flow while still maintaining exposure to equities that can grow over time. In a market where price swings can test patience, the idea of collecting regular distributions near the 11% range has drawn plenty of interest from income investors.

One fund that continues to attract that kind of interest is the JPMorgan Nasdaq Equity Premium Income ETF (JEPQ). Launched in 2022, JEPQ is built around a simple concept that has proven effective in recent years. It holds a portfolio that mirrors the Nasdaq-100, while layering in an options strategy through equity-linked notes to generate income. That combination allows the fund to tap into the growth potential of large-cap technology names while converting market volatility into distributable cash.

The fund’s top holdings include big names such as Nvidia (NVDA), Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOGL), and Meta (META). That exposure provides participation in the same trends that have driven equity markets higher, while the options overlay helps produce a yield that has hovered in the double-digit range. At current levels, JEPQ’s yield sits at 11%, making it one of the more compelling income vehicles within the ETF universe.

One top investor, known by the pseudonym PropNotes, views that balance as the fund’s core strength. PropNotes, who is among the top 1% of stock pros covered by TipRanks, describes JEPQ as offering double-digit income while still leaving room for modest capital appreciation, which helps explain why it has remained a popular choice among income investors.

At the same time, the investor does not ignore the factors that could affect future payouts. PropNotes points out that lower market volatility and growing assets under management could weigh on yield over time, potentially pulling it down toward the 6% to 8% range in a less favorable environment. Still, his overall stance remains constructive, as he maintains a Buy rating on JEPQ and sees the fund as a solid fit for investors who prioritize income within a diversified portfolio.

Another ETF that has drawn strong backing comes from top investor Jack Bowman, who highlights the Goldman Sachs Nasdaq-100 Premium Income ETF (GPIQ). He refers to it as “The King Of Sideways Markets,” a label that reflects how the fund is designed to perform when markets move within a range rather than trending strongly higher.

GPIQ follows a similar playbook to JEPQ, combining exposure to Nasdaq-100 stocks with a covered call strategy designed to generate income. Its top holdings include many of the same large-cap technology names, giving investors familiar exposure to the sector. The result is a portfolio that remains closely linked to the broader tech trade while currently delivering a distribution rate of 11.6%.

Bowman is clear about both the opportunity and the risk. The investor describes GPIQ as an aggressive fund that can work well for investors seeking high income, but he also stresses that it carries meaningful downside exposure since it still holds equities. He believes the current environment makes the strategy look appealing, especially when markets are trading in a tighter range. However, he cautions that if the bull market accelerates, investors in GPIQ may lag those holding traditional long-only positions, even though the income stream itself should remain relatively steady.

Bowman also highlights the tax efficiency tied to the fund’s strategy, which can allow for some level of tax deferral on distributions, giving it an edge for certain investors. Still, the investor emphasizes discipline, arguing that investors should approach the fund with careful position sizing because conditions can shift at any moment. His guiding principle is simple but effective, as he believes position sizing matters more than picking the perfect security.

Disclaimer: The opinions expressed in this article are solely those of the featured investors. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.