High dividend Exchange Traded Funds (ETFs)
High dividend ETFs are investment funds that focus on stocks with high dividend yields. We’ve compiled a collection of high dividend ETFs available on our platform.
Important information: As investment values can go down as well as up, you may not get back all of the money you invest. Currency changes affect international investments, and this can decrease their value in sterling. If you’re unsure if an investment account is right for you, please speak to an authorised financial adviser. Tax treatment depends on your individual circumstances and may be subject to change in the future.
What are high dividend ETFs?
High dividend ETFs are investment funds that focus on stocks that have high dividend yields. This ETF type aims to provide investors with a high income stream.
In general, ETFs suit investors who want to save time and not manage a portfolio of individual stocks.
Generally speaking, an ETF tracks the up and down fortunes of a particular index – such as the FTSE 100 or S&P 500.
Other ETFs focus on a particular theme, sector or group of shares – such as focusing on companies that will potentially pay a high level of income.
What makes an ETF a high dividend ETF?
A yield above 4% is often seen as high, as it’s typically above the wider UK market. For example, the FTSE All Share has yielded around 2.9% as of March 2026, while global shares (MSCI World) tend to be lower, at around 1.6%.
Dividend yields quoted on a fund’s factsheet are backward looking, meaning that they calculate the income paid out over the past 12 months as a percentage of the current price of the ETF. While a good guide for the yield of a portfolio, future dividends may vary, and a rising price of an ETF can reduce its yield if there is not an equal increase in dividends paid.
How do they work?
High dividend ETFs can take different approaches designed to capture income. These focus on:
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Highest-yielding companies globally or in a particular market
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Dividend growth potential
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Strong track record of increasing dividends
Pros and cons to high dividend ETF investing
High dividend ETFs can be a great way to increase your cashflow but it might not be right for every investor. Take a look at the pros and cons for a balanced view.
Pros
- Diversification across a broad selection of sectors and dividend paying companies
- You could get a regular income from the dividends which are typically paid out quarterly
- Access to income-focused investments without you picking individual stocks
- They can be a reliable source of income as ETFs can offer dividends even when company earnings are down
- Most ETFs track an index which means lower management fees than traditional funds
Cons
- There is no guarantee of future dividend payments
- Dividend payments are not fixed and your income may change
- If the stock price is high, that could offset the yield and reduce overall returns
- Dividends are subject to taxes unless they are held in a tax-efficient account such as an ISA
- ETFs prioritising income may have reduced growth potential
High dividend ETFs
This selection of dividend-focused ETFs, collated by our Funds and Investment Editor, Kyle Caldwell, highlight a range of different strategies. Find more information on each ETF in the next section.
| ETF | Yield | Ongoing charges |
|---|---|---|
| iShares EM Dividend ETF USD Dist GBP (LSE:SEDY) | 5.10% | 0.65% |
| WisdomTree Europe Equity Income UCIT ETF GBP (LSE:EEI) | 4.70% | 0.29% |
| Invesco EURO STOXX Hi Div Low VolETF GBP (LSE:EUHD) | 4.30% | 0.30% |
| iShares UK Dividend ETF GBP Dist (LSE:IUKD) | 4.40% | 0.40% |
| iShares Asia Pacific Div ETF USD Dist GBP (LSE:IAPD) | 3.60% | 0.59% |
| Stt Strt SPDR S&P Glbl DivAristETF (LSE:GLDV) | 3.80% | 0.45% |
| iShares Core FTSE 100 ETF GBP Dist (LSE:ISF) | 2.70% | 0.07% |
| Vanguard FTSE AllWld HiDivYld ETF $Dis GBP (LSE:VHYL) | 2.50% | 0.29% |
Updated by Kyle Caldwell in March 2026.
Comparing our high dividend ETFs
Here's a closer look at each high dividend ETF, including where and how it invests. Understanding how an ETF is structured can help you decide if it’s right for your portfolio.
You’ll find more detail in the Key Investor Information Document (KIID) on each instrument page.
WisdomTree Europe Equity Income UCIT ETF GBP (LSE:EEI) offers European exposure, and has a yield of 4.7%. It invests in high yielding European companies. The yearly charge is 0.29%.
Invesco EURO STOXX High Dividend Low Volatility ETF (LSE: EUHD) is another for European exposure, with a yield of 4.3%. It invests in 50 high yield European companies that are also deemed to have low volatility. Its cost is 0.3% a year.
iShares UK Dividend ETF GBP Dist (LSE:IUKD) has a yield of 4.4% on offer. This ETF owns 50 stocks with leading dividend yields from UK listed companies. Its cost is 0.4% a year.
SPDR® S&P Global Dividend Aristocrats ETF (LSE:GLDV) owns global shares that have maintained or increased their dividend annually for at least 10 years. It yields 3.8% and owns around 100 companies, charging annual fees of 0.45%.
iShares Core FTSE 100 ETF GBP Dist (LSE:ISF) tracks the FTSE 100 index, which provides plenty of UK income exposure. The UK offers some of the highest dividend yields among developed markets, given the bias to strong dividend paying sectors including energy and financials. iShares Core FTSE 100 ETF yields 2.7%, with distributions to investors every three months. It costs 0.07% in annual fees.
Vanguard FTSE All-World High Dividend Yield ETF $Dis GBP (LSE:VHYL) is one high dividend ETF that features in ii’s Super 60 list of fund ideas. It yields 2.5% by owning large and mid-sized global companies that have higher-than-average dividend yields. Risk is spread across 2,000 stocks and the yearly fee is 0.29%.
For investors prepared to take on greater risk, there are high dividend ETF options for emerging market economies.
iShares EM Dividend ETF USD Dist GBP (LSE:SEDY) has a yield of 5.1%. It owns 100 emerging markets companies with the highest dividend yields. The yearly charge is 0.65%.
iShares Asia Pacific Dividend ETF USD Dist GBP (LSE:IAPD) has a yield of 3.6%, offering exposure to Asia. It invests in 50 stocks with leading dividend yields from Asia Pacific countries. Its yearly charge is 0.59%.
Bear in mind the charges are ongoing costs, which do not include transaction costs (the fees incurred when the ETF buys and sells shares).
Updated by Kyle Caldwell in March 2026
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High dividend ETF FAQs
The ETF fund manager will follow a specific investment strategy. For example they may start with a large stock market index like the FTSE All Share and use filters to narrow the list of investments down to only the highest-yielding stocks. The manager can then update the portfolio based on changes to the dividend yields available, with entries and exits to the portfolio, known as a rebalance, generally carried out every three months.
Yes you can reinvest dividends back into your investments. Check out our dividend reinvestment service or select an ETF with an accumulation (acc) share class, which will reinvest dividends automatically.
Monthly dividend ETFs carry the same risk as other ETFs. The risk level will depend on the underlying investments. For example, an ETF investing in emerging market shares may be more volatile than a tracker packed with blue chip UK stocks.
You will not pay tax on ETF dividends if you’ve invested through a tax-efficient account like a Stocks and Shares ISA. However, ETF dividends paid through a Trading Account will be subject to the usual dividend tax allowance.
Read more about how dividend tax works.
The ETF fund manager will follow a specific investment strategy. For example they may start with a large stock market index like the FTSE All Share and use filters to narrow the list of investments down to only the highest-yielding stocks. The manager can then update the portfolio based on changes to the dividend yields available, with entries and exits to the portfolio, known as a rebalance, generally carried out every three months.
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