Maximize Your Dividends With These 3 High-Yield ETFs

Key Points

• SPQ combines equities with quantitative investment strategies to generate high dividend yields.
• TMET invests in futures of metals essential for the clean energy transition.
• RYLG employs a covered call strategy on a Russell 2000-linked ETF for passive income.

Dividend stocks may be all the more appealing to investors seeking passive income during market turbulence, but the risk level associated with some individual names may increase amid ongoing tariff and geopolitical uncertainty.

Indeed, if the going gets tough, some companies may need to reduce or even cancel dividend payments in order to free up capital to support ongoing operations.

Diversifying dividend stock holdings across multiple securities may be a way to proactively protect against this risk. By holding multiple dividend-paying positions, an investor can mitigate the potential risk of any one of those firms reducing or postponing its dividend payouts.

An effective and easy way to diversify is through a high-dividend-yield exchange-traded fund (ETF). While there are a number of ETFs specifically targeting dividend names, the ProShares S&P 500 Dividend Aristocrats ETF BATS: NOBL is one of the most popular of these.

Here are three funds that don’t specifically target dividends but still offer attractive yields.

35.9% Annual Dividend Yield With Quantitative Strategy

For investors willing to substitute the risk associated with individual names for leverage risk, the Simplify U.S. Equity PLUS QIS ETF NYSEARCA: SPQ may offer a compelling and unique strategy.

This fund combines 100% U.S. equities exposure with 50% exposure to quantitative investment strategies such as commodities, fixed income, and volatility markets. SPQ also offers an income-generating option spread writing strategy that allows it to make quarterly distributions.

SPQ was launched late in 2023, so it only has a few quarters of distribution history as of early 2025. Notably, the fourth-quarter distribution for 2024 of $4.37 per share was almost 10 times that of the fourth-quarter distribution for 2023. Thanks to that, the fund has an impressive annual dividend yield of 35.9% as of March 13, 2025. It remains to be seen whether that was a one-time fluke or an indicator of the fund's distribution potential going forward.

As an actively managed fund, SPQ has higher fees than most passive funds. However, its 0.57% annual expense ratio remains competitive within the active fund category.

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Seize Clean Energy Growth With Compelling Returns and Dividend Yield

Despite a renewed interest by the Trump administration in exploring fossil fuels, global clean energy demand continues to grow. These technologies require metals like lithium, cobalt, and various rare earth materials, offering investors a chance to gain commodities exposure without fossil fuels.

The iShares Transition-Enabling Metals ETF NASDAQ: TMET tracks an index targeting futures of commodities vital to the clean energy transition.

TMET comes into play for investors seeking passive income thanks to its interest income and capital appreciation on the cash balances used for its commodity-based investments. The fund also invests in various fixed-income products, Treasury Inflation-Protected Securities (TIPS), and similar assets.

This secondary strategy allows TMET to pay a compelling dividend yield of 26.3% on top of its core strategy performance. The fund's returns of 12.8% year-to-date as of March 13 significantly outperform the broader market, so investors may be able to combine strong returns and dividends in a single investment.

Passive Income With a Covered Call Strategy on the Russell 2000

Global X Russell 2000 Covered Call & Growth ETF NYSEARCA: RYLG uses a covered call strategy—also known as buy-write—to purchase shares of the Global X Russell 2000 ETF NYSEARCA: RSSL and sell corresponding call options on the Russell 2000 Index. RYLG writes calls on 50% of its portfolio in an effort to capture half of the Russell 2000 Index's upside potential.

While RYLG's returns so far this year have disappointed—down about 7% year-to-date as of March 14—its monthly distributions have been strong. With an annual dividend yield of 25.5% and an annual dividend rate of $5.29, RYLG has proven itself to be a useful source of regular passive income for investors. 

Despite the complexity of its strategy, the fund has a relatively modest expense ratio of 0.35%, which means that investors don't have too much of that income taken up by annual fees either.

Investing in RYLG may be best for those looking for exposure to the small-cap space through the Russell 2000 Index and who have the risk tolerance for a covered call strategy.