We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The S&P 500 has entered correction territory on March 13, 2025 as all three major market indices declined in Thursday's session. The Nasdaq Composite had already entered this territory previously. Correction zone typically refers to a decline of 10% or more from a recent high (read: 4 Reasons to Buy the Dip in Nasdaq ETFs).
On March 13, 2025, U.S. President Donald Trump has threatened to impose a 200% tariff on alcoholic beverages from European Union nations after the EU reinstated levies on American whiskey. With Trump standing firm on tariffs despite a three-week market upheaval, investors are likely placing significant emphasis on the trade war at the moment.
Against this backdrop, we highlight below a few winning high-income exchange-traded funds (ETFs) that could offer some protection to your portfolio. Investors may be interested in securities that have the potential to offer decent capital appreciation as well as higher current income. Also, these securities provide investors with avenues to make up for capital losses if that happens at all.
The underlying Solactive Global SuperDividend Index tracks the performance of 100 equally weighted companies that rank among the highest dividend-yielding equity securities in the world. The index provider applies certain dividend stability filters. The 120-stock ETF charges 58 bps in fees and yields 11.04% annually.
The fund has 32% exposure to the United States, followed by Hong Kong (14.5%), Britain (7.1%) and China (4.5%). Due to its extensive foreign exposure, the ETF SDIV has gained 0.6% this year compared with 5.7% losses seen in the SPDR S&P 500 ETF Trust (SPY - Free Report) .
The underlying Dow Jones Emerging Markets Select Dividend Index measures the performance of the companies in emerging market countries that have provided relatively high dividend yields on a consistent basis over time. The fund yields 11.16% annually and has gained about 6% this year. The fund charges 49 bps in fees.
Short-term Treasury ETFs generally track a collection of short-term Treasury securities, focusing on bonds with shorter durations. These ETFs typically hold Treasuries that mature within a few months to a few years. During periods of high or rising inflation, they provide a balance of attractive yields and lower risk compared to long-term Treasury ETFs. The ETF BIL yields 4.86% annually and charges 14 bps in fees. BIL is up 0.1% so far this year (read: Why Are Investors Flocking to Money Market Funds?).
SPDR Bloomberg Short Term High Yield Bond ETF (SJNK - Free Report)
The underlying Bloomberg US High Yield 350mn Cash Pay 0-5 Yr 2% Capped Index includes publicly issued U.S. dollar denominated, non-investment-grade, fixed rate, taxable corporate bonds that have a remaining maturity of less than 5 years regardless of optionality, are rated high-yield and have $350 million or more of issuance. The fund yields 7.44% annually and has lost only 0.9% this year. The fund charges 40 bps in fees.
MLP ETFs have been performing greatly this year.Many of the MLPs have hit multiyear highs. The underlying Alerian MLP Infrastructure Index is capped, float-adjusted, capitalization-weighted composite of energy infrastructure Master Limited Partnerships that earn the majority of their cash flow from the transportation, storage, and processing of energy commodities. The ETF charges 85 bps in fees and yields 7.47% annually. The fund has gained 3.5% so far this year (as of March 13, 2025).
JEPI is a defensive equity portfolio that deploys a bottom-up fundamental research process with stock selection based on our proprietary risk-adjusted stock rankings. Disciplined options overlay implements written out-of-the-money (OTM) S&P 500 Index call options that seek to generate distributable monthly income. JEPI charges 35 bps in fees and yields 7.53% annually. JEPI has lost 2.3% in the year-to-date frame (read: High-Yield ETFs Face Off: JEPI Versus HIPS).
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Wall Street in Correction: Tap High-Income ETFs
The S&P 500 has entered correction territory on March 13, 2025 as all three major market indices declined in Thursday's session. The Nasdaq Composite had already entered this territory previously. Correction zone typically refers to a decline of 10% or more from a recent high (read: 4 Reasons to Buy the Dip in Nasdaq ETFs).
On March 13, 2025, U.S. President Donald Trump has threatened to impose a 200% tariff on alcoholic beverages from European Union nations after the EU reinstated levies on American whiskey. With Trump standing firm on tariffs despite a three-week market upheaval, investors are likely placing significant emphasis on the trade war at the moment.
Against this backdrop, we highlight below a few winning high-income exchange-traded funds (ETFs) that could offer some protection to your portfolio. Investors may be interested in securities that have the potential to offer decent capital appreciation as well as higher current income. Also, these securities provide investors with avenues to make up for capital losses if that happens at all.
ETFs in Focus
Global X SuperDividend ETF (SDIV - Free Report)
The underlying Solactive Global SuperDividend Index tracks the performance of 100 equally weighted companies that rank among the highest dividend-yielding equity securities in the world. The index provider applies certain dividend stability filters. The 120-stock ETF charges 58 bps in fees and yields 11.04% annually.
The fund has 32% exposure to the United States, followed by Hong Kong (14.5%), Britain (7.1%) and China (4.5%). Due to its extensive foreign exposure, the ETF SDIV has gained 0.6% this year compared with 5.7% losses seen in the SPDR S&P 500 ETF Trust (SPY - Free Report) .
iShares Emerging Markets Dividend ETF (DVYE - Free Report)
The underlying Dow Jones Emerging Markets Select Dividend Index measures the performance of the companies in emerging market countries that have provided relatively high dividend yields on a consistent basis over time. The fund yields 11.16% annually and has gained about 6% this year. The fund charges 49 bps in fees.
SPDR Bloomberg 1-3 Month T-Bill ETF (BIL - Free Report)
Short-term Treasury ETFs generally track a collection of short-term Treasury securities, focusing on bonds with shorter durations. These ETFs typically hold Treasuries that mature within a few months to a few years. During periods of high or rising inflation, they provide a balance of attractive yields and lower risk compared to long-term Treasury ETFs. The ETF BIL yields 4.86% annually and charges 14 bps in fees. BIL is up 0.1% so far this year (read: Why Are Investors Flocking to Money Market Funds?).
SPDR Bloomberg Short Term High Yield Bond ETF (SJNK - Free Report)
The underlying Bloomberg US High Yield 350mn Cash Pay 0-5 Yr 2% Capped Index includes publicly issued U.S. dollar denominated, non-investment-grade, fixed rate, taxable corporate bonds that have a remaining maturity of less than 5 years regardless of optionality, are rated high-yield and have $350 million or more of issuance. The fund yields 7.44% annually and has lost only 0.9% this year. The fund charges 40 bps in fees.
Alerian MLP ETF (AMLP - Free Report)
MLP ETFs have been performing greatly this year.Many of the MLPs have hit multiyear highs. The underlying Alerian MLP Infrastructure Index is capped, float-adjusted, capitalization-weighted composite of energy infrastructure Master Limited Partnerships that earn the majority of their cash flow from the transportation, storage, and processing of energy commodities. The ETF charges 85 bps in fees and yields 7.47% annually. The fund has gained 3.5% so far this year (as of March 13, 2025).
JPMorgan Equity Premium Income ETF (JEPI - Free Report)
JEPI is a defensive equity portfolio that deploys a bottom-up fundamental research process with stock selection based on our proprietary risk-adjusted stock rankings. Disciplined options overlay implements written out-of-the-money (OTM) S&P 500 Index call options that seek to generate distributable monthly income. JEPI charges 35 bps in fees and yields 7.53% annually. JEPI has lost 2.3% in the year-to-date frame (read: High-Yield ETFs Face Off: JEPI Versus HIPS).