3 Best Bond ETFs with High Dividend Yields for Income Investors

2026-03-04 00:12:00

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Investors seeking stable income can consider adding bond exchange-traded funds (ETFs) that offer attractive dividend yields to their portfolios. Bond ETFs offer the benefit of diversification at low cost. Here, we will look at three bond ETFs with lucrative dividend yields: Invesco Senior Loan ETF BKLN +0.20% ▲ , BondBloxx JP Morgan USD Emerging Markets 1-10 Year Bond ETF XEMD -0.31% ▼ , and VanEck CLO ETF CLOI -0.06% ▼ .

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TipRanks’ ETF Comparison Tool gives a snapshot of these ETFs across key metrics.

Invesco Senior Loan ETF (BKLN)

The BKLN ETF tracks the Morningstar LSTA U.S. Leveraged Loan 100 Index and is suitable for investors seeking high income potential and diversification through senior loans. It is worth noting that senior secured loans are secured by a company’s assets and are prioritized for return of capital in the event of default.

Interestingly, the BKLN ETF has paid over $1.432 in dividends over the past year. It offers an attractive yield of 7.07%.

BondBloxx JP Morgan USD Emerging Markets 1-10 Year Bond ETF (XEMD)

The XEMD ETF tracks the J.P. Morgan EMBI Global Diversified Liquid 1-10 Year Maturity Index and offers exposure to U.S. dollar-denominated emerging market bonds with an average life of below 10 years. It offers investors the opportunity to capitalize on the growth potential of rapidly developing economies while mitigating currency risk.

The XEMD ETF has paid about $2.6978 per share in dividends over the past year. It offers a dividend yield of 6.01%.

VanEck CLO ETF (CLOI)

The CLOI ETF invests mainly in investment-grade-rated tranches of collateralized loan obligations (CLOs) of any maturity. It aims to ensure capital preservation and provide current income.

With dividends of $2.9157 per share paid over the past year, the CLOI ETF offers a yield of 5.54%.

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