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High-Yield ETFs for Passive Income

Yahoo Finance •
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Investors seeking income can consider three dividend ETFs yielding over 9%, each using distinct strategies. The ProShares Russell 2000 High Income ETF (ITWO) offers an 11.37% yield through a daily covered call strategy on small-cap stocks, aiming to capture more upside than traditional monthly approaches.

The iShares 20+ Year Treasury Bond BuyWrite ETF (TLTW) delivers a 14.71% yield by overlaying a buy-write strategy on long-term Treasuries. Despite past losses from rising rates, it’s gaining as rate-cut expectations grow. TLTW provides bond-like stability with enhanced income potential.

Meanwhile, the Westwood Midstream Income ETF (MDST) yields 9.03% by investing in U.S. energy pipelines. These assets benefit from steady, fee-based revenues driven by rising energy exports to Europe. With global supply concerns, especially from Venezuela, midstream infrastructure remains in demand.

All three funds offer monthly distributions and cater to investors looking beyond low-yield savings accounts. They reflect a shift from passive indexing toward active income generation.