Forget About COLA Increases, These High Yield ETFs Will Do More For You

Core Insights - The markets in 2025 have shown volatility, with both bullish and bearish trends impacting investor strategies [1] - The Social Security Administration has projected a 2.8% Cost of Living Adjustment (COLA) for 2026, which may not keep pace with rising inflation at approximately 3% [2] High-Yield ETFs - Two high-yield ETFs are highlighted as potential alternatives for income-focused investors: the State Street Blackstone High Income ETF (HYBL) and the State Street SPDR Portfolio S&P 500 High Dividend ETF (SPYD) [3] - The State Street Blackstone High Income ETF (HYBL) has around $545 million in assets under management and offers a dividend yield of 7.2%, significantly higher than the projected COLA increase [5] - HYBL aims to generate strong total returns with high income while maintaining lower volatility compared to broader bond and credit markets, investing in high-yield corporate bonds, senior loans, equity, and U.S. CLO debt tranches [5][6] - The top holdings of HYBL include Fair Isaac Corp 4%, JetBlue Airways Corp / JetBlue Loyalty LP 9.875%, and Cloud Software Group/Balboa/Citrix, reflecting a diversified economic exposure [6] - The SPYD ETF tracks the 80 highest dividend-yielding S&P 500 stocks and has a low fee of 0.07% [7]