Similar to REITs, another group to consistently provide high yields for investors is master limited partnerships (MLPs). These companies typically focus on energy infrastructure businesses, such as pipelines and storage facilities, and pass along most of their cash flows to investors.
The VanEck Vectors High Income MLP ETF (YMLP), the Direxion Zacks MLP High Income Index Shares (ZMLP) and the Global X MLP ETF (MLPA) are a few of the funds from this group that made the list, with yields in excess of 7%.
|Ticker||Fund||Fund Average Dividend Yield||30-Day SEC Yield|
|YMLP||VanEck Vectors High Income MLP ETF||9.51||9.37|
|ZMLP||Direxion Zacks MLP High Income Index Shares||8.97||-|
|MLPA||Global X MLP ETF||7.5||-|
The funds mentioned so far are primarily U.S.-focused, but investors can also find high yields outside the country. The Global X Superdividend ETF (SDIV) doesn’t care what country or sector a stock resides in, only that it has a high yield.
It equally weights 100 of the highest dividend-yielding stocks in the world and churns out a beefy 9.3% yield.
Global X has a handful of these “superdividend” ETFs on the market, each targeting a different niche. The Global X MSCI SuperDividend Emerging Markets ETF (SDEM) and the Global X MSCI SuperDividend EAFE ETF (EFAS) are two other examples.
Not to be outdone, iShares has competing products targeting similar areas, such as the iShares Asia/Pacific Dividend ETF (DVYA) and the iShares Emerging Markets Dividend ETF (DVYE), each with yields above 7%.
Here’s a full list of the highest-yielding ETFs:
Highest Yielding ETFs