##  [# Yield Definition](/etf-education-center/etf-glossary/yield) 

 

# Yield Definition

 

 

Learn the definition of yield and other ETF terminology from the etf.com glossary.



 

 

 

 

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[By ETF Glossary](/authors/etf-glossary)

 Jan 16, 2024

 Edited by: ETF.com Staff

 

 

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## Learn more about Yield

Yield in ETFs epitomizes the income generated by the fund's holdings, expressed as a percentage of its Net Asset Value (NAV). This income, derived from dividends, interest payments, or other sources, is a critical consideration for income-seeking investors. High-yield ETFs often invest in assets with higher income potential, such as dividend-paying stocks or high-yield bonds. Yield serves as a barometer for investors evaluating the income-generating potential of an ETF, contributing to portfolio construction strategies aimed at optimizing cash flow and achieving a balance between income and capital appreciation within the context of specific investment objectives.

### Related Terms

[Exchange-Traded Fund](/etf-education-center/etf-glossary/exchange-traded-fund-etf), [Net Asset Value (NAV)](/etf-education-center/etf-glossary/net-asset-value-nav)

 
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  ETF Glossary is etf.com’s collection of key terms and definitions related to exchange-traded funds. ETFs are investment funds that are traded on stock…   [View Bio](/authors/etf-glossary)

 



 

 


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