3 High-Yield Dividend ETFs to Load Up On Right Now (And Why)

"Some investors consistently seek the highest-growth stocks in the market. Others focus almost exclusively on quality, with valuation being the most vital metric to consider. Still others will focus on dividend yield, and the absolute size of a stock's dividend yield, as the key metric to consider when evaluating the investability of a given stock. Personally, I believe a combination of the three can be most meaningful for those seeking substantial total returns over the long term."

"With a dividend yield of approximately 6.8%, the Invesco S&P SmallCap High Dividend Low Volatility ETF (XSHD) is one of the top options in the market for investors seeking to maximize their yield. Tracking the 90 highest-yielding U.S. small-cap stocks, this ETF employs a unique allocation strategy. It selects the 60 stocks from this group with the lowest price volatility and then weights each position based on its respective yield."

"This ETF's expense ratio of 0.3% is reasonable, considering the amount of work that will undoubtedly be required to rebalance this portfolio from time to time. Indeed, for investors seeking to capitalize on a rally in small-cap stocks (which have underperformed their large-cap counterparts on a relative basis) while mitigating downside risk through a volatility screen, this is how I'd approach gaining exposure to the small-cap space."

A combination of growth, quality (valuation), and dividend focus can drive substantial long-term total returns. Some investors prioritize highest-growth stocks, others emphasize quality and valuation, and others prioritize dividend yield and its size. For investors seeking maximum upfront yield within value and growth guardrails, the Invesco S&P SmallCap High Dividend Low Volatility ETF (XSHD) provides approximately 6.8% yield. XSHD tracks the 90 highest-yielding U.S. small-cap stocks, selects the 60 with lowest price volatility, and weights positions by yield. The concentrated portfolio amplifies market-swing risks and may cause long-term yield fluctuations. The expense ratio is 0.3%.

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