How We Identified the Best Dividend ETFs for 2025
Last year's list of best dividend ETFs was so popular, we decided to update it for 2025! To arrive at our list, we began with the entire universe of exchange-traded funds and screened for high dividend yield ETFs with the best year-to-date returns through March 5, 2025.
We first screened for 30-day SEC yields above 5% and then ranked those funds by performance. Leveraged ETFs and derivative income funds, such as covered call ETFs, were eliminated from our search.
While past performance is no guarantee of future results and high yields can indicate higher market risk, the top performers in this space this year are dominated by funds focusing on developed and emerging markets. Last year's leader was master limited partnerships (MLPs).
FlexShares Emerging Markets Quality Low Volatility Index Fund
The FlexShares Emerging Markets Quality Low Volatility Index Fund (QLVE) aims to provide investors with exposure to emerging market equities while focusing on quality and low volatility factors.
Essentially, it seeks to deliver a potentially less volatile emerging market investment experience by selecting companies with strong fundamentals, such as strength in profitability, management expertise, and cash flow.
- YTD return: 2.66%
- SEC yield: 5.38%
- Expense ratio: 0.18%
- AUM: $12.7 million
Cambria Emerging Shareholder Yield ETF
The Cambria Emerging Shareholder Yield ETF (EYLD) targets emerging market companies that return cash to shareholders through a three-pronged approach.
Unlike traditional dividend-focused ETFs, EYLD considers not just dividends but also net share buybacks, where companies repurchase their own stock, and low financial leverage. This strategy aims to identify companies in developing economies that prioritize returning value to shareholders while maintaining a healthy financial profile.
- YTD return: 3.23%
- SEC yield: 5.63%
- Expense ratio: 0.63%
- AUM: $486.6 million
FlexShares International Quality Dividend Dynamic Index
The FlexShares International Quality Dividend Dynamic Index Fund (IQDY) focuses on high-quality, dividend-paying stocks from developed markets outside the U.S., emphasizing companies with strong profitability and growth potential.
The fund doesn't shy away from market risk, and it has a bias on large-cap stocks, along with some mid-caps, by selecting its constituents from its parent index, Northern Trust International Large Cap Index.
- YTD return: 7.32%
- SEC yield: 5.21%
- Expense ratio: 0.47%
- AUM: $64.7 million
FlexShares International Quality Dividend ETF
The FlexShares International Quality Dividend ETF (IQDF) invests in high-quality, dividend-paying stocks from developed and emerging markets, focusing on companies with strong profitability, management efficiency, and cash flow.
IQDF aims to provide consistent income and long-term growth by targeting stocks with high dividend yields while maintaining broad diversification across sectors and regions.
- YTD return: 8.94%
- SEC yield: 5.69%
- Expense ratio: 0.47%
- AUM: $619.4 million
ALPS International Sector Dividend Dogs ETF
The ALPS International Sector Dividend Dogs ETF (IDOG) follows a contrarian dividend strategy, selecting the five highest-yielding stocks from each of the 10 GICS sectors in international developed markets.
By following a modified "Dogs of the Dow" strategy, IDOG seeks to provide high dividend income and potential value appreciation by focusing on out-of-favor stocks with strong fundamentals across a diversified sector allocation.
- YTD return: 11.86%
- SEC yield: 5.38%
- Expense ratio: 0.50%
- AUM: $296.6 million
