5 Top Yielding ETFs To Buy in May

Markets have become wildly unstable.

So much so that some investors are jumping out of the market, which is a very bad idea.

Sure, selling may offer some relief. But it also secures losses and prevents you from making your lost money back over time. Remember, markets are resilient. They’ve bounced back from worse, including the 2020 COVID crash, the dot-com bust, and even the Great Depression.

Instead of jumping out of the market, consider diversifying your current portfolio with higher-yielding exchange-traded funds (ETFs).

That’ll help build a stream of passive income and offer you exposure to some of the most respected stocks on the market. All of which should help keep your portfolio safe.

In fact, here are five top-yielding ETFs you may want to buy heading into May.

JPMorgan Nasdaq Equity Premium Equity Income ETF 

Let’s start with the JPMorgan Nasdaq Equity Premium Equity Income ETF (NASDAQ:JEPQ).

With an expense ratio of 0.35%, the JEPQ ETF carries a monthly yield of 12.42%. It also generates income by selling options and by investing in U.S. large-cap growth stocks. All of which allows it to deliver a monthly income stream through options premiums and stock dividends. Even better, investors have also benefited from the ETF’s appreciation.

Some of its 108 holdings include Apple, Nvidia, Microsoft, Amazon, Alphabet, Meta Platforms, Broadcom, Netflix, Tesla and Costco to name just a few.

Since 2023, the JEPQ ETF ran from a low of about $30 to a recent high of $56.77. From there, it pulled back to $46.53 thanks to the broad market pullback but is starting to pivot higher. Last trading at $51.11, we’d like to see it retest its $56.77 high.

ProShares S&P 500 High Income ETF 

There’s also the ProShares S&P 500 High Income ETF (BATS:ISPY).

With an expense ratio of 0.55% and a monthly yield of 0.79%, the ISPY ETF tracks the performance of the S&P 500 Daily Covered Call Index. That Index, as noted by ProShares.com, “is designed to replicate the performance of an investment strategy that combines a long position in the S&P 500 Index with a short position in S&P 500 Index call options. This combination is often referred to as a “covered call” strategy.”

Since it started trading in December 2023, the ISPY ETF ran from about $35.20 to a recent high of $44.50. It recently dropped to $36.51 thanks to the market chaos but is starting to pivot higher. Last trading at $39.51, we’d like to see it retest $44.50.

Vanguard Dividend Appreciation ETF

With an expense ratio of 0.05% and a monthly yield of 1.73%, the Vanguard Dividend Appreciation ETF (NYSEARCA:VIG) is also an attractive opportunity. It tracks the performance of the S&P U.S. Dividend Growers Index and invests in large-cap stocks with a record of dividend growth.

Some of the VIG ETF’s 338 holdings include Apple, Microsoft, Broadcom, JPMorgan, Eli Lilly, Visa, Exxon Mobil, UnitedHealth Group, Mastercard and Costco Wholesale to name a few.

Since the start of 2023, the VIG ETF ran from a low of about $144.20 to a high of $204.26. It would also drop with the market to about $170, where it’s also starting to pivot higher. From its last traded price of $189.04, we’d like to see it retest $204.26 initially.

Fidelity High Dividend ETF 

We can also look at the Fidelity High Dividend ETF (NYSEARCA:FDVV).

With an expense ratio of 0.16% and a yield of 3.26%, the FDVV ETF tracks the Fidelity High Dividend Index, which is designed to reflect the performance of stocks of large- and mid-capitalization dividend-paying companies that are expected to continue to grow dividends.

Some of its top holdings include Apple, Microsoft, Nvidia, JPMorgan Chase, Visa, Exxon Mobil, Philip Morris, and Procter & Gamble to name a few.

The FDVV has also been explosive.

Since 2023, it ran from about $34.11 to a high of $51.90. It also pulled back recently to about $43, where it’s also starting to rebound. From its last traded price of $47.84, we’d like to see an initial retest of $51.90 shortly.

iShares Core High Dividend ETF 

There’s also the iShares Core High Dividend ETF (NYSEARCA:HDV).

With an expense ratio of 0.08% and a yield of 3.3%, the HDV ETF tracks the investment results of an index composed of relatively high dividend-paying U.S. equities. Some of its 75 holdings include Exxon Mobil, Johnson & Johnson, Progressive Corp., Chevron, AbbVie, Philip Morris, AT&T, and Coca-Cola to name just a few. Since 2023, it ran from about $95 to a high of about $120. Now back to $114.66, we’d like to see it retest its prior high.

With all of these ETFs, we can potentially profit from price appreciation and yield.

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