Investing Insights

9 Top ETFs for Income Investors That Stood Out in 2025

14 snips
Dec 26, 2025
Bryan Armour, an ETF specialist from Morningstar, and Dan Sotiroff, editor of ETF Investor, explore top-performing ETFs for income investors. They discuss how factor investing impacts dividend strategies, detailing a checklist for selecting dividend ETFs. Highlights include gold-rated Vanguard and Schwab funds. Sotiroff explains the rising popularity of bond ETFs in 2025, discussing their stability and diverse options like Fidelity's core-plus fund. They also delve into the attraction of covered-call ETFs, balancing current income with long-term growth risks.
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INSIGHT

Dividend ETFs Tilt Toward Value And Low Volatility

  • Dividend ETFs typically tilt toward value and low volatility while dividend-growth ETFs skew higher in quality.
  • Factor exposure explains why income-focused dividend funds often sacrifice some quality for yield.
ADVICE

Choose Dividend ETFs With Balanced Factor Exposure

  • Look for some value and low-volatility exposure without sacrificing quality when choosing a dividend ETF.
  • Favor low turnover and low fees to control implementation costs and diversify risk.
INSIGHT

Vanguard’s Dividend Growth Emphasizes Quality

  • Vanguard's Dividend Appreciation ETFs select firms with long records of raising payouts and market-cap weight to limit active risk.
  • That approach yields higher quality holdings with lower turnover and lower costs.
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