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7 Best Income ETFs to Buy in 2026

By U.S. News & World Report

Why does Warren Buffett prefer stocks over an asset like gold? The simple answer: cash flow.

With gold, you only earn capital gains when you sell it for a profit. However, you don’t need to sell your stocks to earn an income. You can hold on to your stocks while earning a steady income in the form of dividends for as long as you want.

The same thing applies to bonds (and other fixed-income securities) and real estate investment trusts (REITs).

If you are one of those prioritizing high and stable cash flows, then you need to add the right income exchange-traded funds, or ETFs, to your portfolio. Income ETFs are funds that invest in income-yielding or cash-flow-generating securities, whether they’re dividends or interest payments.

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Why Should You Consider Income ETFs?

If you are a retiree or nearing retirement, income from your portfolio can help to finance your retirement budget. Even if you are not near retirement, you may use the monthly or quarterly distributions from income ETFs to meet certain recurring needs and wants (for example, paying your children’s school fees).

You may also prioritize regular income so you can reinvest it in the market and profit from the “magic” of compound interest. For stock investors, this approach is known as dividend growth investing.

Additionally, income investing can be a way to reduce the risk exposure of your portfolio, especially in bear markets. Investors often view consistent and growing dividend payments as a sign that a company is stable and able to generate profits across various economic cycles. Thus, when the stock market is volatile, investors often reallocate their equity portfolio to defensive stocks, which are known for their dividend consistency.

In what follows, we consider seven of the best income ETFs to buy in 2026. This list focuses on stock, bond and REIT ETFs. It ignores income-generating derivative strategies, which are often too complex for the average retail investor.

ETF Expense ratio 30-day SEC yield
Schwab U.S. Dividend Equity ETF (ticker: SCHD) 0.06% 3.4%
SPDR Portfolio S&P 500 High Dividend ETF (SPYD) 0.07% 4.6%
iShares International Select Dividend ETF (IDV) 0.50% 3.9%
Vanguard Long-Term Bond ETF (BLV) 0.03% 5.4%
State Street SPDR Portfolio High Yield Bond ETF (SPHY) 0.05% 7.1%
Schwab U.S. REIT ETF (SCHH) 0.07% 3.5%
VanEck Mortgage REIT Income ETF (MORT) 0.42% 13.7%

Schwab U.S. Dividend Equity ETF (SCHD)

SCHD is an equity income ETF that tracks the Dow Jones U.S. Dividend 100 Index. This index contains 100 U.S. stocks that combine high dividend yields, strong fundamentals and consistent dividend payments.

It tracks popular dividend stocks like Verizon Communications Inc. (VZ), Coca-Cola Co. (KO) and Home Depot Inc. (HD), among others.

Key features:

— 30-day SEC yield: 3.4%

— Expense ratio: 0.06%

— Assets under management: $85.1 billion

— Number of holdings: 104

— Five-year annualized return (market price): 8.2%

Best known for:

SCHD is best known for its low expense ratio, high dividend yield and dividend consistency.

SPDR Portfolio S&P 500 High Dividend ETF (SPYD)

SPYD is an equity income ETF that tracks the S&P 500 High Dividend Index, an index of 80 S&P 500 companies with the highest dividend yield.

Its holdings include popular stocks like AT&T Inc. (T), U.S. Bancorp (USB) and Chevron Corp. (CVX).

Key features:

— 30-day SEC yield: 4.6%

— Expense ratio: 0.07%

— Assets under management: $7.1 billion

— Number of holdings: 80

— Five-year annualized return (market price): 7.9%

Best known for:

SPYD is best known for its high dividend yield, low expense ratio and commitment to an equal-weight strategy rather than weighting its holdings by market capitalization.

iShares International Select Dividend ETF (IDV)

IDV is an equity income ETF that tracks the Dow Jones EPAC Select Dividend Index. This index consists of high-yielding dividend stocks in developed markets outside of the U.S., including Europe, Asia and Canada.

It includes popular names like British American Tobacco PLC (BATS.L) and Total Energies SE (TTE).

Key features:

— 30-day SEC yield: 3.9%

— Expense ratio: 0.5%

— Assets under management: $8.1 billion

— Number of holdings: 103

— Five-year annualized return (market price): 12.9%

Best known for:

IDV is best known for its high dividend yield, global diversification and strong returns.

Vanguard Long-Term Bond ETF (BLV)

BLV is a bond ETF that mirrors the Bloomberg U.S. Long Government/Credit Float Adjusted Index, a benchmark of long-duration (maturities of 10 years or more) and investment-grade U.S. government and corporate bonds.

Key features:

— 30-day SEC yield: 5.4%

— Expense ratio: 0.03%

— Assets under management: $8.8 billion

— Number of holdings: 3,000

— Five-year annualized return (market price): -3.1%

Best known for:

BLV is best known for its high dividend yield, low expense ratio and monthly distributions.

[Read: 9 of the Best Bond ETFs to Buy Now.]

State Street SPDR Portfolio High Yield Bond ETF (SPHY)

SPHY is a bond ETF that mirrors the ICE BofA US High Yield Index. This index tracks corporate bonds rated below investment grade (BB+ or lower).

Key features:

— 30-day SEC yield: 7.1%

— Expense ratio: 0.05%

— Assets under management: $10 billion

— Number of holdings: 1,924

— Five-year annualized return (market price): 4.4%

Best known for:

SPHY is best known for its high dividend yield, which results from its focus on non-investment-grade bonds.

Schwab U.S. REIT ETF (SCHH)

SCHH is a REIT ETF that tracks the Dow Jones Equity All REIT Capped Index, a benchmark that consists of all publicly traded U.S. REITs (mortgage and equity).

Key features:

— 30-day SEC yield: 3.5%

— Expense ratio: 0.07%

— Assets under management: $9.3 billion

— Number of holdings: 121

— Five-year annualized return (market price): 3.7%

Best known for:

SCHH is best known for its low expense ratio and the diversification of its holdings.

VanEck Mortgage REIT Income ETF (MORT)

MORT seeks to replicate the performance of the MVIS US Mortgage REITs Index, an index that tracks U.S. mortgage REITs.

Key features:

— 30-day SEC yield: 13.7%

— Expense ratio: 0.42%

— Assets under management: $383.7 million

— Number of holdings: 27

— Five-year annualized return (market price): -1%

Best known for:

MORT is best known for its high yield and its concentration in mortgage REITs.

Which Income ETF Is Best for You?

If you want to earn a consistent income from your portfolio, any of these seven income ETFs may be appropriate for your situation.

However, the one(s) you choose will depend on your risk tolerance (can you cope with the higher risk of non-investment-grade bonds?), other investment goals (the importance of returns in addition to yield, for instance) and time horizon (for example, can you cope with the long maturities of a long-term bond ETF?).

In the end, you should talk to your financial advisor before making a final decision. This will help you choose the right income ETFs that align with your individual financial situation.

More from U.S. News

5 Best ETFs for Tax-Loss Harvesting

ETF vs. Stock: Which Is Better for Your Portfolio?

ETF vs Mutual Fund: How to Choose for Your Investing Strategy

7 Best Income ETFs to Buy in 2026 originally appeared on usnews.com

Update 04/07/26: This story was published at an earlier date and has been updated with new information.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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