Reviewed by Gotrade Internal Analyst
Gotrade News - Morningstar just released its list of 13 High Dividend ETFs that are prime targets for passive income strategies in 2026. This lineup highlights top-rated instruments that offer dividend yields more attractive than the broader market right now.
The selection process didn’t just chase the highest numbers; it focused heavily on asset quality and long-term dividend sustainability. Investors now have a clearer roadmap to navigate market volatility while securing steady cash flow.
Key Takeaways:
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The list features ETFs with Gold or Silver Morningstar Medalist Ratings.
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All selected assets have a trailing 12-month yield beating the SPY average.
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Picks range from US domestic strategies to international exposure for portfolio diversification.
Strict Selection Criteria
Analysts sifted through hundreds of funds to find instruments that optimally balance risk and potential returns for retail investors. The main focus was on low fees and a proven track record of managers who have performed solidly across various market cycles.
A key criteria was that every fund must have 100 percent analyst coverage to ensure maximum data transparency. This adds a layer of safety for investors looking to avoid "yield traps" often found in high-risk stocks.
Here is a quick comparison of the performance and categories of these top assets. This data is key if you're eyeing popular tickers like VIG and VYM.
| Name | Ticker | Morningstar Category | Trailing 12-Month Yield (%) |
|---|---|---|---|
| Capital Group Dividend Value ETF | CGDV | Large Value | 1.26 |
| Fidelity High Dividend ETF | FDVV | Large Value | 2.81 |
| JPMorgan Dividend Leaders ETF | JDIV | Global Large-Stock Blend | 1.69 |
| Schwab International Dividend Equity ETF | SCHY | Foreign Large Value | 3.36 |
| Schwab US Dividend Equity ETF | SCHD | Large Value | 3.51 |
| State Street SPDR S&P Dividend ETF | SDY | Mid-Cap Value | 2.45 |
| Vanguard Dividend Appreciation Index Fund | VIG | Large Blend | 1.59 |
| Vanguard High Dividend Yield Index Fund | VYM | Large Value | 2.33 |
| Vanguard International Dividend Appreciation Index Fund | VIGI | Foreign Large Growth | 2.12 |
| Vanguard International High Dividend Yield Fund | VYMI | Foreign Large Value | 3.49 |
| WisdomTree US LargeCap Dividend Fund | DLN | Large Value | 1.83 |
| WisdomTree US MidCap Dividend Fund | DON | Mid-Cap Value | 2.43 |
| WisdomTree US SmallCap Dividend Fund | DES | Small Value | 2.65 |
Diverse Dividend Strategies
Investors need to realize that each High Dividend ETF on this list takes a different strategic approach to generating income. Some funds focus on large-cap US companies, while others hunt for growth opportunities in international markets.
The choice between high absolute yield or dividend growth should align with your risk profile and cash flow needs. Diversifying into mid-cap or small-cap categories can also be a solid move to boost your total return potential.
Ready to build your passive income machine with these top ETFs? You can start investing in VIG, VYM, and access over 600 other top Options and ETFs on Gotrade. You can get started with as little as $1!
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Reference:
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Morning Star, The Top High-Dividend ETFs for Passive Income in 2026. Accessed on February 5, 2026
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