Passive income is a major draw for investors, and exchange-traded funds (ETFs) with a dividend focus are a great way to simplify the process. Many of these funds sacrifice returns for stability of distributions, however. For investors seeking the best of both worlds—an attractive dividend yield alongside returns that beat the market—some ETFs offer both.
Of course, there tend to be trade-offs in these cases. In the case of the funds below and others like them, investors should watch out for overall fees and risk levels. Many of the funds with the highest dividend yields will also carry unusually significant risk, making them suitable only for investors with a high tolerance.
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