High-Yield Monthly ETFs

Screening Filters

1. Dividend Frequency = Monthly

   • Purpose: Ensure the ETFs selected actually pay dividends every month.
   • Rationale: The user explicitly wants monthly dividend ETFs. Many income funds pay quarterly or semi-annually, so this filter directly targets funds whose distribution schedule is monthly, matching the “monthly dividend” requirement.

2. Annual Dividend Yield ≥ 7%

   • Purpose: Focus on higher-income ETFs.
   • Rationale: The phrase “high-yield” is subjective, but a 7%+ annual yield is generally considered high in ETF land, especially relative to broad market or investment-grade bond ETFs. Setting a minimum yield of 7% ensures we’re only seeing funds that currently offer elevated income, aligning with the “high-yield” part of the request.

3. Expense Ratio ≤ 0.60%

   • Purpose: Exclude excessively expensive funds.
   • Rationale: High-yield ETFs often charge more, but very high fees can eat into the income you receive. Capping the expense ratio at 0.60% keeps the list to funds that provide relatively high yield without overly punitive fees, which is important for long-term net income.

4. Monthly Average Dollar Volume ≥ $300,000

   • Purpose: Ensure a basic level of liquidity and tradability.
   • Rationale: Some niche high-yield or monthly-payer ETFs are very illiquid, leading to wide bid–ask spreads and higher trading costs. By requiring at least $300k in average dollar volume per month, the screener favors ETFs that trade enough to be reasonably accessible for most investors.

5. Inception Date ≤ 2020-01-01

   • Purpose: Focus on ETFs with a longer track record.
   • Rationale: High-yield strategies can be riskier and more complex. Requiring funds to have started on or before January 1, 2020 means we’re looking at ETFs with several years of history, including through different market conditions (e.g., the COVID crash and subsequent recovery). This provides more data to evaluate consistency of yield and distributions.

Why Results Match:

• They are ETFs that pay dividends monthly, satisfying the timing of cash flows the user wants.
• They meet a minimum yield threshold (≥7%), capturing the “high-yield” focus.
• They maintain reasonable costs via the expense-ratio cap, protecting net income.
• They have adequate liquidity, making them more practical to buy and sell.
• They have a multi-year performance and payout history, improving reliability vs. brand-new products.