5 High-Yield ETFs to Buy for Long-Term Income

For investors committed to generating income, these five high-yield ETFs could be worth including in your buy-and-hold portfolio.

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The Federal Reserve recently suggested that the U.S. economy will shrink by 6.5% – its worst annual performance since World War II. The Fed also expects unemployment to finish the year over 9%.

Those are good reasons to develop a heightened interest in high-yield ETFs (exchange-traded funds). That's because the Fed's key interest rate likely will hover around 0% for the next 24 to 36 months, leaving investors starved for income, while Fed Chairman Jerome Powell uses every tool at his disposal to help restart the economy.

"(The outbreak) will weigh heavily on economic activity. (It) poses considerable risks to the economic outlook," Powell stated June 10. "We're not even thinking about raising rates. We're not even thinking about thinking about raising rates."

That should make it all the more difficult to generate above-average income from equity and bond ETFs in the near to mid-term. Difficult … but not impossible.

Here are five high-yield ETFs delivering at least 4% in annual income that you can buy for the long-term

Data is as of June 16. Dividend yields represent the trailing 12-month yield, which is a standard measure for equity funds.

Kyle Woodley

Kyle Woodley is the Editor-in-Chief of Young and The Invested (opens in new tab), a site dedicated to improving the personal finances and financial literacy of parents and children. He also writes the weekly The Weekend Tea (opens in new tab) newsletter, which covers both news and analysis about spending, saving, investing, the economy and more.


Kyle was previously the Senior Investing Editor for Kiplinger.com, and the Managing Editor for InvestorPlace.com before that. His work has appeared in several outlets, including Yahoo! Finance, MSN Money, Barchart, The Globe & Mail and the Nasdaq. He also has appeared as a guest on Fox Business Network and Money Radio, among other shows and podcasts, and he has been quoted in several outlets, including MarketWatch, Vice and Univision. He is a proud graduate of The Ohio State University, where he earned a BA in journalism. 


You can check out his thoughts on the markets (and more) at @KyleWoodley (opens in new tab).