3 High-Yield Dividend ETFs That Will Perform the Best in 2026

Core Insights - High-yield dividend ETFs are expected to perform well in 2026 as interest rates decline, attracting investors seeking higher yields [1] - The article highlights three specific ETFs: FT Vest S&P 500 Dividend Aristocrats Target Income ETF (KNG), Amplify CWP Enhanced Dividend Income ETF (DIVO), and Invesco High Yield Equity Dividend Achievers ETF (PEY) [1] Group 1: ETF Performance and Characteristics - FT Vest S&P 500 Dividend Aristocrats Target Income ETF (KNG) offers an 8% dividend yield and has an expense ratio of 0.75%, but has only returned 7.66% over the past five years [1] - Amplify CWP Enhanced Dividend Income ETF (DIVO) has a dividend yield of 6.13% and an expense ratio of 0.56%, utilizing a tactical covered call strategy while maintaining portfolio upside [1] - Invesco High Yield Equity Dividend Achievers ETF (PEY) provides a 4.43% dividend yield with minimal tech exposure (2.79%) and an expense ratio of 0.54%, making it resilient during market selloffs [1] Group 2: Market Context and Investor Behavior - The current economic environment, characterized by high inflation and stable Treasury yields, is driving investors towards high-yield assets as prolonged rate cuts are anticipated [1] - The demand for yield is expected to increase as inflation remains a concern, leading to a shift in investor focus from Treasuries to dividend-paying equities [1]