5 Best Dividend ETFs to Buy for Q2 2025

Dividend paying stocks are often the first port of call for anyone wanting regular income from their investments.

Buying shares in dividend ETFs offers an easier way to invest in companies that make regular payments to shareholders.

Our beginner friendly guide picks the best dividend ETFs and tells you where to buy them. 

What are the top dividend ETFs to buy?

In the table below we’ve listed the best five dividend ETFs selected by our expert analysts. You’ll find each one’s ticker symbol and name. Continue scrolling to learn more about each ETF in detail or have a look at our comprehensive article if you would like to learn more about buying ETFs.

1. SPDR Portfolio S&P 500 High Dividend ETF (NYSEARCA: SPYD)

• Current price: $40.16
• AUM: $5,906.89 million
• Annual expense ratio: 0.07%
• YTD performance: 1.18%
• Annual dividend yield: 4.50%

The SPDR Portfolio S&P 500 High Dividend ETF offers investors exposure to the top 80 high dividend-yielding companies within the S&P 500. Managed by State Street Global Advisors, SPYD aims to track the performance of the S&P 500 High Dividend Index, ensuring that investors benefit from a diverse portfolio of established, high-yield stocks.

SPYD’s low expense ratio of just 0.07% makes it an attractive option for cost-conscious investors seeking substantial dividend income. The ETF’s current dividend yield stands at an impressive 4.50%, providing a steady income stream that is particularly appealing in today’s low-interest-rate environment.

 SPYD’s performance has been relatively stable, with a year-to-date gain of 1.18%, showcasing its resilience and income-generating potential. The fund’s sector allocation offers a unique blend that sets it apart from other dividend ETFs.

SPYD includes holdings in a variety of sectors, which helps mitigate risk and enhances potential for capital appreciation. With a balanced approach, SPYD provides a robust option for investors looking to bolster their portfolios with high-yielding, reliable dividend-paying stocks.

2. Invesco S&P 500 High Dividend Low Volatility ETF (NYSEARCA: SPHD)

• Current price: $44.21
• AUM: $2,922.4 million
• Annual expense ratio: 0.30%
• YTD performance: 2.58%
• Annual dividend yield: 4.23%

Our second pick, the Invesco S&P 500 High Dividend Low Volatility ETF, stands out by blending high dividend yields with reduced volatility. Tracking the S&P 500 Low Volatility High Dividend Index, SPHD invests in 50 securities from the S&P 500 that have a history of delivering high dividends with lower volatility.

This ETF is rebalanced and reconstituted semi-annually in January and July to ensure it remains aligned with its strategic goals. SPHD is an excellent option for investors seeking a balance between income and risk management.

Boasting an annual dividend yield of 4.23%, it provides a steady income stream. The fund’s diversified portfolio includes major defensive sector holdings such as utilities and consumer staples, featuring companies like Altria Group, Kinder Morgan, and AT&T. This sector focus helps mitigate market volatility, making SPHD a stable choice in uncertain times.

What makes SPHD unique is its targeted approach to high-yield, low-volatility investments, ideal for those prioritizing income without significant price fluctuations. It offers focused exposure to stable, high-yield stocks, differentiating it from broader market ETFs. For investors looking for a dividend-focused ETF that minimizes risk, SPHD is a compelling choice.

3. ProShares S&P 500 High Income ETF (BATS: ISPY)

• Current price: $43.30
• AUM: $166.50 million
• Annual expense ratio: 0.55%
• YTD performance: 7.95%
• Annual dividend yield: 8.85%

The ProShares S&P 500 High Income ETF leverages a daily covered call strategy to enhance income potential. By selling call options daily, ISPY aims to generate a high level of income, offering a substantial annualized distribution yield of 8.85%. This makes it an attractive choice for income-focused investors.

ISPY’s strategy targets efficient income generation while seeking to capture S&P 500 returns over the long term. Unlike traditional monthly covered call strategies, the daily approach aims to reduce timing risk and enhance return potential. This innovative method ensures consistent income through daily option premiums.

The fund’s sector allocation mirrors that of the S&P 500, with significant exposure to Information Technology, Financials, and Health Care sectors. This diversified exposure, combined with the high-income generation strategy, positions ISPY as a unique option for investors seeking high dividends with a tactical approach to managing market volatility.

4. Vanguard International High Dividend Yield Index Fund ETF (NASDAQ: VYMI)

• Current price: $69.45
• AUM: $8.11 billion
• Annual expense ratio: 0.22%
• YTD performance: 3.80%
• Annual dividend yield: 4.80%

For investors aiming to diversify their income streams beyond U.S. borders, the Vanguard International High Dividend Yield Index Fund ETF (NASDAQ: VYMI) stands out as a prime choice. This ETF tracks the FTSE All-World ex US High Dividend Yield Index, targeting large-cap value stocks that offer attractive dividend yields.

With a low expense ratio of 0.22%, VYMI offers cost-effective access to a broad portfolio of over 1,500 high-dividend-yield stocks. The ETF delivers a compelling annual dividend yield of 4.80%, paid quarterly, making it an appealing option for income-seeking investors.

Its regional allocation, with significant exposure to Europe, the Pacific, and emerging markets, ensures a well-rounded global investment approach. VYMI’s extensive diversification reduces risks inherent in single-stock investments. Holdings like Nestlé, TotalEnergies, and Toyota Motor exemplify the high-quality, dividend-paying companies within the fund.

Since its inception in 2016, VYMI has achieved an annualized return of over 8.5%, demonstrating its potential for both income generation and capital growth.

5. Invesco Senior Loan ETF (NYSEARCA: BKLN)

• Current price: $21.09
• AUM: $8,318.2 million
• Annual expense ratio: 0.65%
• YTD performance: -0.38%
• Annual dividend yield: 8.88%

Rounding out our list is the Invesco Senior Loan ETF, which offers investors exposure to the largest institutional leveraged loans. Tracking the Morningstar LSTA US Leveraged Loan 100 Index, BKLN focuses on market-weighted performance of the top 100 leveraged loans, providing a unique investment opportunity within the high-yield, floating-rate loan sector.

With an annual yield of 8.88%, BKLN is ideal for investors seeking high income potential. The ETF’s structure allows it to capitalize on rising short-term interest rates, as the loans it holds are typically priced off floating rate benchmarks like SOFR plus a credit spread.

Despite the inherent risks associated with leveraged loans, BKLN has managed to deliver strong returns, driven by high yields and tightening credit spreads.

However, investors should remain cautious of the increasing default rates in the leveraged loan market. For those willing to navigate the risks, BKLN offers substantial income potential and a hedge against rising interest rates.

Where to buy the best dividend ETFs

To buy the best dividend ETFs you will first need to register with a broker. The table below has a selection of our expertly recommended brokers. Simply click the links to register in just a few minutes. 

4.6

eToro

Min. Deposit $100

Fees 1%

No. assets 3600+

Demo account Yes

Visit site

eToro review

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.

4.5

Plus500

Min. Deposit $100

Fees From 2%

No. assets 2800+

Demo account Yes

Visit site

Plus500 review

This information is NOT relevant to EU residents who are to be serviced by EU subsidiaries of the Plus500 Group, such as Plus500CY Ltd, authorized by CySEC (Reg. 250/14). Different regulatory requirements apply in Europe, such as leverage limitations and bonus restrictions.

Best dividend ETFs

Min. Deposit n/a

Fees -

No. assets n/a

Demo account -

Visit site

What is a dividend ETF?

It’s an exchange traded fund that’s available to buy and sell on the stock market. Dividend ETFs give investors exposure to a basket of stocks which pay regular dividends. ETFs of this nature are most suited to anyone seeking income from their investments. Dividend ETFs are not tied down to a specific industry niche and can invest in a range of stocks. 

Dividend ETFs invest in all sizes of companies and include some of the largest and best known businesses in the world. You are able to buy shares in a dividend ETF the same way as any other stock. Most ETFs track the performance of a particular index or industry. 

Are dividend ETFs a good investment?

Yes they can be and they are best suited for anyone wanting to generate income from their investments. Typically, investors who seek regular income buy individual stocks, however, dividend ETFs offer a much easier way to earn regular payments. These types of ETFs not only pay dividends but give investors exposure to a diversified range of stocks. 

Most dividend ETFs invest in companies from across the globe and include the largest blue chip companies, to smaller businesses in emerging markets. Some dividend ETFs only buy stocks of companies that have historically maintained dividend payments, while other don’t. So it’s important to consider the types of companies included in any ETF. 

Whatever you decide to do, it’s key to keep up to date with the latest news and market analysis which you can do by clicking any of the links below. You’ll also need to register with a trusted broker prior to buying an ETF. If you click on the button below you’ll be taken to a selection of our expertly selected ETF platforms offering dividend ETFs.

Methodology: How we choose the best dividend ETFs

At Invezz, we are dedicated to helping investors make informed decisions by providing authoritative, accessible, and engaging advice and recommendations. Our curated section of the best Exchange-Traded Funds (ETFs) is carefully selected by our team of experienced market analysts and reviewed by a sub-editor. This methodology outlines the rigorous process we follow to ensure our ETF recommendations are up-to-date, reliable, and insightful.

• Analyst research & recommendations: Our seasoned market analysts use their in-depth sector knowledge to identify ETFs with strong potential, ensuring they meet high standards of performance, liquidity, and market potential.
• ETF evaluation: We evaluate ETFs based on their underlying assets, historical performance, expense ratios, and tracking accuracy, alongside macroeconomic factors and sector trends.
• Fund performance reports: We assess ETFs through the latest performance reports, analyzing key metrics like returns, volatility, expense ratios, and assets under management (AUM).
• Sector analysis and external recommendations: Our detailed sector analysis, combined with recommendations from reputable sources like Barron’s and Zacks, provides an additional layer of validation for our selections.
• Quarterly review & refresh: We update our curated ETF list quarterly, re-evaluating each ETF based on the latest reports, industry developments, and market conditions to ensure our recommendations reflect the most current information available.