The best dividend ETFs right now include Schwab U.S. Dividend Equity (SCHD), Vanguard Dividend Appreciation (VIG), Vanguard High Dividend Yield (VYM), iShares Core Dividend Growth (DGRO), ProShares S&P 500 Dividend Aristocrats (NOBL), iShares Core High Dividend (HDV), and SPDR Portfolio S&P 500 High Dividend (SPYD). Together these seven funds hold more than $390 billion and let income investors own hundreds of dividend payers through a single ticker.
A dividend ETF is a basket of dividend-paying stocks you can buy like one share. The yield is the annual dividend divided by the share price, so a 3.5% yield pays about $35 a year on every $1,000 invested. With the 10-year Treasury near 4.6%, the gap between bond income and stock dividends is tight, and that has pushed more investors toward funds that pay now and raise the payout over time.
We screened the largest US-listed dividend ETFs and narrowed the list to seven, each built for a different job: pure income, dividend growth, or a blend of both.
How We Picked These Funds
Dozens of dividend ETFs trade on US exchanges. We filtered for funds with at least $5 billion in assets under management (the total money the fund holds, called AUM), a track record of three years or longer, and daily volume above 100,000 shares so you can buy and sell without moving the price. We also weighed the expense ratio, the yearly fee charged as a percent of your money, and favored low-cost funds. We excluded funds that borrow to amplify returns, single-stock income funds, and anything with a yield so high it signals a payout at risk. The result splits cleanly into two camps: high current income and rising dividends over time.
The List
Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD)
Why it made the list: SCHD tracks the Dow Jones U.S. Dividend 100 Index, which screens for companies with 10 or more years of payments, strong cash flow, and healthy balance sheets. It charges 0.06% and yields about 3.3%, one of the best income-plus-quality combinations in the category. The five-year dividend growth rate sits near 11% a year.
The bull case: SCHD holds about 100 stocks weighted toward consumer staples, healthcare, and energy, sectors that tend to hold up when growth stocks wobble. The low fee and the quality screen have produced steady total returns with less drama than the broad market.
The risk: The fund owns almost no large technology names, so it can lag badly in years when a handful of tech stocks drive the market.
Key number: Roughly $95 billion in assets at a 0.06% fee, meaning you pay about $6 a year per $10,000 invested.
Vanguard Dividend Appreciation ETF (NYSEARCA:VIG)
Why it made the list: VIG focuses on dividend growth rather than high yield. It tracks the S&P U.S. Dividend Growers Index, which requires at least 10 straight years of rising dividends and drops the highest-yielding 25% of names to avoid stressed payers. At 0.04%, it is the cheapest fund on this list.
The bull case: The 338 holdings lean toward large, profitable companies in technology, financials, and healthcare. Investors get a rising income stream plus more growth exposure than a pure high-yield fund offers.
The risk: The yield is low, near 1.5%, so VIG suits investors who want their income to grow more than those who need cash today.
Key number: A 0.04% expense ratio, the lowest fee in this group.
Vanguard High Dividend Yield ETF (NYSEARCA:VYM)
Why it made the list: VYM tracks the FTSE High Dividend Yield Index and holds 589 stocks, the broadest list here. It yields close to 2.3% and charges just 0.04%, pairing solid income with deep diversification.
The bull case: With nearly 600 holdings across financials, industrials, and healthcare, VYM spreads risk widely and avoids betting on any single company. It has a long record dating back to 2006. For a closer look at two classic high yielders of the kind VYM owns, see our comparison of the Verizon and AT&T dividends.
The risk: The broad screen lets in some slower-growing companies, so dividend growth trails more focused funds like SCHD.
Key number: 589 holdings, the most diversified fund on this list.
iShares Core Dividend Growth ETF (NYSEARCA:DGRO)
Why it made the list: DGRO sits between yield and growth. It requires five straight years of dividend increases and a payout ratio under 75%, meaning companies pay out less than three-quarters of earnings as dividends and reinvest the rest. It yields about 2% and charges 0.08%.
The bull case: The fund holds 394 stocks and has grown its payout near 9% to 10% a year. That blend of current income and growth has made it a popular core holding.
The risk: The yield is middling, so income-focused investors may want to pair it with a higher-yield fund.
Key number: A payout ratio cap of 75%, a built-in check on payout safety.
ProShares S&P 500 Dividend Aristocrats ETF (BATS:NOBL)
Why it made the list: NOBL holds only S&P 500 companies that have raised dividends for at least 25 straight years, the group known as Dividend Aristocrats. It weights each of its roughly 70 stocks equally, so no single name dominates.
The bull case: The 25-year screen filters for durable businesses that kept raising payouts through recessions. Equal weighting tilts the fund toward consumer staples and industrials, classic defensive sectors. PepsiCo, which has raised its dividend for 54 straight years, is a textbook example of the companies that make the cut.
The risk: At 0.35%, NOBL charges far more than the index funds here, and the strict screen leaves out many strong dividend payers with shorter histories.
Key number: A 0.35% expense ratio, roughly six times what SCHD charges.
iShares Core High Dividend ETF (NYSEARCA:HDV)
Why it made the list: HDV targets high current income with a quality filter. It holds 74 stocks screened for financial health and yields near 3%. Energy, consumer staples, and healthcare make up most of the fund.
The bull case: The concentrated list of large, cash-rich companies delivers one of the higher yields on this list without reaching for risky payers.
The risk: A heavy energy weighting, above 20% of the fund, ties returns to oil and gas prices, which have swung hard in 2026.
Key number: 74 holdings, a focused bet on large dividend payers.
SPDR Portfolio S&P 500 High Dividend ETF (NYSEARCA:SPYD)
Why it made the list: SPYD owns the 80 highest-yielding stocks in the S&P 500, weighted equally. It posts the highest yield on this list, currently above 4%, at a low 0.07% fee.
The bull case: The simple high-yield screen and equal weighting deliver strong current income and a value tilt toward real estate, utilities, and consumer staples.
The risk: Chasing the highest yields can pull in companies under pressure, and the real estate and utility weighting makes SPYD sensitive to interest rates.
Key number: A yield above 4%, the highest in this group.
Best Dividend ETFs at a Glance
SCHD Recent Dividends
Sector Overview
Dividend funds have drawn fresh money in 2026 as investors balance growth bets against steady income. With the 10-year Treasury near 4.6% and the S&P 500 trading above 7,500, many investors want a cushion if high-flying tech names pull back. Dividend ETFs offer that cushion, paying cash every quarter while still owning stocks. The rally has been kind to these funds, too: VYM and HDV each returned more than 20% over the past year, though the price gains have pushed yields down across the category.
The split between yield and growth runs through the whole category. High-yield funds like VYM, HDV, and SPYD pay more today and lean toward value sectors. Growth funds like VIG and DGRO pay less now but raise the dividend faster, which can matter more over a 10- or 20-year holding period. SCHD sits in the middle, which is why it has become the default choice for many income investors. For investors who prefer picking individual names, our guide to the best value stocks covers the kind of cash-rich companies these funds hold.
Income strategies are also shifting as more retirement money moves into markets. A proposed Department of Labor rule could open 401(k) plans to private assets, a sign of how hard investors are hunting for yield. Options-based income funds are pulling in money as well; JEPQ trades Nasdaq upside for a monthly payout. And for a look at one high-yield product on the riskier end, see our breakdown of the MSTY dividend, which shows why a triple-digit yield is not always what it appears to be.
What to Watch
- Interest rates: The 10-year Treasury sits near 4.6%. If the Fed cuts and that yield falls, high-yield funds like SPYD and HDV tend to gain as bonds get less competitive.
- Energy prices: HDV and VYM carry heavy energy weights, so oil swings tied to Middle East tensions flow straight through to their returns.
- Distributions: SCHD paid its second-quarter distribution of $0.2525 per share on June 29, and the next round of quarterly payouts for these funds lands in late September.
Bottom Line
For investors who want income today, SCHD, VYM, HDV, and SPYD pay the most now. For investors who want a rising paycheck over time, VIG and DGRO grow the dividend faster. Many investors own one from each camp. SCHD remains the simplest single pick, blending a yield near 3.3% with quality holdings and a rock-bottom fee.
Frequently Asked Questions
What is the best dividend ETF?
SCHD is the most popular dividend ETF and the most common single pick. It pairs a yield near 3.3% with a 0.06% fee and a quality screen that favors companies with 10 or more years of payments. Investors who want higher income often choose VYM or SPYD, while those who want faster dividend growth pick VIG or DGRO.
Which dividend ETF has the highest yield?
Among these seven, SPYD usually has the highest yield, currently above 4%, because it holds the 80 highest-yielding stocks in the S&P 500. HDV and SCHD also pay well, near 3% to 3.3%. Higher yields can carry more risk, so check what a fund holds before chasing the top number.
Are dividend ETFs good for retirement?
Dividend ETFs can fit a retirement portfolio because they pay regular cash and tend to hold stable, profitable companies. Funds like SCHD and VYM offer income now, while VIG and DGRO grow the payout to help offset inflation. They do not guarantee income, since companies can cut dividends in a downturn.
Is SCHD or VIG better?
SCHD yields more, near 3.3%, and favors current income. VIG yields less, near 1.5%, but grows its dividend faster and holds more technology. Income-focused investors lean toward SCHD, while those who want growth with a rising payout lean toward VIG. Many investors hold both.
How much do dividend ETFs cost?
Most of the funds here charge very little. VIG and VYM cost 0.04% a year, SCHD costs 0.06%, and HDV and SPYD run 0.07% to 0.08%. NOBL is the priciest at 0.35%, or about $35 a year per $10,000 invested.
