Best Dividend ETFs (2026)
Which dividend fund to hold for income and dividend growth — 20 funds ranked on cost, yield, return, risk and ETFValuer's overall grade.
Every figure on this page is recalculated from market data each day, so the ranking reflects current conditions rather than whenever this page was written. Educational content — not financial advice.
Top Picks Right Now
- best risk-adjusted return (Sharpe 1.83)
- cheapest in the group at 0.04%
Ranked by ETFValuer's overall score. Recalculated every day from live market data — these positions change as the underlying numbers move.
At a Glance
Each superlative is measured within this group of 20 funds, not across the whole market.
All 20 Funds Ranked
| Fund | Category | Cost | Yield | 1Y | 3Y | Volatility | Max DD | Sharpe | AUM | Score | Grade |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 VYMIVanguard International High Dividend Yield Index Fund ETF Shares | Dividend Income | 0.07% | 3.68% | +29.4% | +75.0% | 13.3% | -12.8% | 1.83 | $20.4B | 85.8 | A |
| 2 VYMVanguard High Dividend Yield Index Fund ETF Shares | Dividend Income | 0.04% | 2.30% | +22.0% | +59.1% | 10.2% | -14.5% | 1.66 | $96.2B | 83.4 | B+ |
| 3 SCHDSchwab U.S. Dividend Equity ETF | Dividend Income | 0.06% | 3.30% | +24.8% | +45.3% | 11.0% | -16.1% | 1.80 | $95.7B | 81.7 | B+ |
| 4 HDViShares Core High Dividend ETF | Dividend Income | 0.08% | 2.90% | +22.8% | +51.5% | 10.7% | -10.5% | 1.67 | $13.7B | 81.3 | B+ |
| 5 DGROiShares Core Dividend Growth ETF | Dividend Income | 0.08% | 1.95% | +20.8% | +55.4% | 9.5% | -14.0% | 1.66 | $41.2B | 81.0 | B+ |
| 6 IDViShares International Select Dividend ETF | Dividend Income | 0.50% | 5.50% | +28.0% | +87.8% | 13.2% | -11.9% | 1.74 | $8.0B | 80.2 | B+ |
| 7 FDLFirst Trust Morningstar Dividend Leaders Index Fund | Dividend Income | 0.43% | 3.80% | +22.4% | +61.9% | 11.7% | -12.2% | 1.49 | $7.3B | 76.2 | B+ |
| 8 VIGVanguard Dividend Appreciation Index Fund ETF Shares | Dividend Income | 0.04% | 1.51% | +16.5% | +50.7% | 10.0% | -14.9% | 1.15 | $129.5B | 75.7 | B+ |
| 9 DVYiShares Select Dividend ETF | Dividend Income | 0.38% | 2.20% | +21.2% | +52.9% | 11.2% | -16.0% | 1.45 | $22.9B | 74.6 | B |
| 10 SCHYSchwab International Dividend Equity ETF | Dividend Income | 0.08% | 3.50% | +21.1% | +48.0% | 12.1% | -12.2% | 1.34 | $2.3B | 74.4 | B |
| 11 RDVYFirst Trust Rising Dividend Achievers ETF | Dividend Income | 0.47% | 0.83% | +26.1% | +69.2% | 14.6% | -19.1% | 1.45 | $24.5B | 74.2 | B |
| 12 SPYDState Street SPDR Portfolio S&P 500 High Dividend ETF | Dividend Income | 0.07% | 4.26% | +17.6% | +46.8% | 11.9% | -16.1% | 1.06 | $7.4B | 68.4 | B |
| 13 DIVOAmplify CWP Enhanced Dividend Income ETF | Dividend Income | 0.56% | 2.26% | +15.5% | +48.4% | 9.2% | -12.1% | 1.14 | $7.2B | 67.1 | B |
| 14 DGRWWisdomTree U.S. Quality Dividend Growth Fund | Dividend Income | 0.28% | 1.27% | +13.2% | +45.5% | 10.3% | -16.2% | 0.79 | $16.6B | 63.4 | C |
| 15 SDYState Street SPDR S&P Dividend ETF | Dividend Income | 0.35% | 2.45% | +12.6% | +31.4% | 10.6% | -14.4% | 0.72 | $21.4B | 62.6 | C |
| 16 SPHDInvesco S&P 500 High Dividend Low Volatility ETF | Dividend Income | 0.30% | 4.58% | +11.4% | +39.2% | 11.7% | -13.3% | 0.55 | $3.3B | 59.7 | C |
| 17 VIGIVanguard International Dividend Appreciation Index Fund ETF Shares | Dividend Income | 0.07% | 2.13% | +7.9% | +30.6% | 13.0% | -14.5% | 0.22 | $9.1B | 59.1 | C |
| 18 NOBLProShares S&P 500 Dividend Aristocrats ETF | Dividend Income | 0.35% | 2.07% | +10.6% | +24.1% | 11.7% | -15.4% | 0.48 | $11.5B | 57.9 | C |
| 19 FVDFirst Trust Value Line Dividend Index Fund | Dividend Income | 0.62% | 1.65% | +10.4% | +29.5% | 9.9% | -12.0% | 0.54 | $8.0B | 57.7 | C |
| 20 PEYInvesco High Yield Equity Dividend Achievers ETF | Dividend Income | 0.54% | 4.09% | +17.6% | +37.9% | 14.2% | -17.9% | 0.89 | $1.1B | 55.6 | C |
Max DD is the deepest peak-to-trough fall over the measurement window. Sharpe ratio measures return per unit of volatility — higher is better. Every figure is recalculated daily.
What Makes a Good Fund Here
A high headline yield is not the same as a good dividend fund. Funds screening for dividend *growth* and balance-sheet quality have historically delivered better total returns than those chasing the highest current payout, which tends to select for troubled companies.
The ETFValuer score blends trailing return, risk-adjusted return, expense ratio, maximum drawdown, fund size and volatility, each percentile-ranked against the full tracked universe, into a single 0-100 figure graded A+ to F. It is a systematic summary of past data, not a forecast — read it alongside the individual columns rather than instead of them.
What Makes a Dividend ETF Good
"Dividend ETF" covers a wide range of strategies, and they are not interchangeable. Before comparing tickers, it helps to know what actually separates them:
- Yield versus total return. A distribution is only part of the return. A fund paying 3% while growing 8% a year in share price beats one paying 9% that stays flat or declines. Compare the 1-year and 3-year total return columns above, not just the trailing yield.
- Expense ratio. Core dividend index funds sit at the very low end of the fee range, while option-writing income funds charge several times more. Since a dividend fund's edge over the market is modest to begin with, fee eats a disproportionate share of it.
- What the fund screens for. Some funds select on current yield, some on a long history of raising dividends, some on balance-sheet quality. That screen determines the sector mix and drives most of the performance difference between funds that otherwise look alike.
- Concentration. Dividend screens naturally tilt toward a handful of sectors. Check how much of a fund sits in its top ten holdings before assuming it is broadly diversified.
- Where the distribution comes from. Dividends paid by profitable companies are one thing; distributions funded by option premium or by returning your own capital are another. The headline yield does not distinguish between them.
Dividend Yield vs Dividend Growth
Core dividend funds split into two philosophies, and the right one depends mostly on your time horizon:
| High-yield funds | Dividend-growth funds | |
|---|---|---|
| Current yield | Higher today | Lower today |
| Payout growth rate | Typically slower | Typically faster |
| Sector tilt | Often financials, energy, utilities | Often technology, healthcare, industrials |
| Best suited to | Investors who need income now, such as in retirement | Investors with a longer horizon who reinvest distributions |
An investor decades from retirement reinvesting every distribution is usually better served by the dividend-growth approach: a lower starting yield compounding at a faster rate overtakes a higher static yield, and the growth screens tend to select financially stronger companies. An investor drawing on the portfolio now reasonably weights current yield more heavily. Holding one fund from each camp is defensible; holding three high-yield funds is usually just the same bet three times.
Taxes and Account Placement
Dividend distributions are taxable in the year received in a standard taxable brokerage account, whether or not you reinvest them. That makes account placement a real decision rather than an afterthought:
- Qualified dividends — the norm for the core dividend index funds on this page — are taxed at long-term capital gains rates, which are lower than ordinary income rates for most people.
- Covered-call fund distributions are frequently a mix of ordinary income, short-term gains and return of capital, and are typically taxed less favourably. That makes them a better fit for a tax-advantaged account than a taxable one.
- REIT distributions are generally taxed as ordinary income for the same reason, and are commonly held in tax-sheltered accounts.
- A high-yield fund in a taxable account generates a tax bill every year regardless of whether you needed the cash. An investor in the accumulation phase may prefer lower-yielding, higher-growth funds there, and keep the income funds sheltered.
Tax treatment varies by country and by personal circumstance. This is general educational information, not tax advice — check your own situation before acting on it.
Head-to-Head Comparisons
Full metric-by-metric breakdowns for the closest calls in this group.
Frequently Asked Questions
What is the best dividend ETF?
VYMI currently tops ETFValuer's ranking of the 20 dividend funds tracked, with a score of 85.8 and a grade of A. The highest current yield among them is IDV at 5.50%, though the highest yield is rarely the best total-return choice.
Is a high dividend yield always better?
No. An unusually high yield often reflects a falling share price rather than a generous payout, and can signal a dividend at risk of being cut. Funds that screen for dividend growth and financial strength have generally produced better total returns than pure high-yield screens.
Are dividend ETFs good for retirement income?
They can be, but the income is not fixed — dividends can be cut, and the fund's value still fluctuates with the market. Many advisers treat total return as the relevant measure and sell shares as needed, rather than restricting a portfolio to high-yield funds to avoid selling.
Compare any of these funds directly
Side-by-side metrics, holdings overlap and return correlation for any pair.