Best Of
Best Low-Cost Dividend ETFs in 2026
Dividend ETFs with the lowest expense ratios, so more income stays in your pocket.
Data updated June 2026 · 40 ETFs
Who this page is for
Best for
- Long-term investors minimizing fee drag on compounded returns
- Core-portfolio holders who want reliable dividend income with broad diversification
- Fee-conscious investors in taxable and tax-advantaged accounts alike
Not a fit for
- Income maximizers — these typically yield 2-4%, not 8-50% like options-based strategies
- Investors seeking options overlays, leverage, or single-stock income bets
- Short-term traders — these funds shine over decade-plus holding periods
Analysis
This category brings together 40 ultra-low-cost ETFs spanning both equity and fixed income strategies, united by their emphasis on minimal fees rather than maximizing dividend income alone. The funds shown above are dominated by broad market index trackers from established issuers including Vanguard, iShares, State Street, JPMorgan, and Schwab, reflecting the consolidation of passive investing around a handful of major providers. A notable split exists between equity-oriented funds with modest yields and bond-focused funds delivering meaningfully higher income at the same rock-bottom expense ratios.
- IVV holds the largest AUM among the funds shown above at $832.9B, illustrating the extraordinary scale passive core equity ETFs have reached.
- Among monthly-paying funds in the top 10 here, SCHI posts the highest yield at 4.90%, while AGG and BND represent the lower end of that group at 4.00% and 4.03% respectively.
- BBUS and SPYM tie for the lowest expense ratio among the funds shown above at 0.02%, a fraction below the category's 0.03% average.
- AUM concentration is striking — BND ($157.9B), SPYM ($148.1B), and IVV ($832.9B) account for the vast majority of assets among the top 10 here, while SCHJ trails at just $798M.
- Equity funds in the top 10 here yield between 1.04% and 1.11%, well below the category's 3.60% average yield, suggesting bond ETFs are pulling that average upward.
Income-focused investors should be aware that low expense ratios do not automatically translate into high yields — several funds here prioritize broad market exposure over dividend generation. Interest rate sensitivity is also a meaningful consideration for the bond ETFs in this group, as rising rates can pressure net asset values even when income distributions remain stable.
AI-generated analysis — AI can make mistakes. Verify important information independently. Not investment advice. Learn more
Top picks
Top 3 ETFs by lowest expense ratio.
Yield distribution
Expense ratio distribution
Income projection
Estimated annual, monthly, and weekly income based on the average yield of 3.60% across these 40 ETFs. For illustration only—actual income will vary.
| Investment | Annual income | Monthly income | Weekly income |
|---|---|---|---|
| $10,000 | $360 | $30 | $7 |
| $25,000 | $900 | $75 | $17 |
| $50,000 | $1,800 | $150 | $35 |
| $100,000 | $3,601 | $300 | $69 |
Issuer breakdown
Distribution of ETFs by fund issuer. Larger issuers often offer lower expense ratios and higher liquidity.
All 40 ETFs
| Ticker | Name | Issuer | Yield | Expense ratio | AUM | Frequency |
|---|---|---|---|---|---|---|
| BBUS | JPMorgan BetaBuilders U.S. Equity ETF | JPMorgan | 1.04% | 0.02% | $8.4B | Quarterly |
| SPYM | SPDR Portfolio S&P 500 ETF | State Street | 1.11% | 0.02% | $148.1B | Quarterly |
| AGG | iShares Core U.S. Aggregate Bond ETF | iShares | 4.00% | 0.03% | $135.9B | Monthly |
| BBAG | JPMorgan BetaBuilders U.S. Aggregate Bond ETF | JPMorgan | 4.46% | 0.03% | $1.0B | Monthly |
| BND | Vanguard Total Bond Market ETF | Vanguard | 4.03% | 0.03% | $157.9B | Monthly |
| ITOT | iShares Core S&P Total U.S. Stock Market ETF | iShares | 1.04% | 0.03% | $91.4B | Quarterly |
| IVV | iShares Core S&P 500 ETF | iShares | 1.09% | 0.03% | $832.9B | Quarterly |
| SCHB | Schwab U.S. Broad Market ETF | Schwab | 1.06% | 0.03% | $42.3B | Quarterly |
| SCHI | Schwab 5-10 Year Corporate Bond ETF | Schwab | 4.90% | 0.03% | $11.5B | Monthly |
| SCHJ | Schwab 1-5 Year Corporate Bond ETF | Schwab | 4.48% | 0.03% | $798M | Monthly |
| SCHO | Schwab Short-Term U.S. Treasury ETF | Schwab | 3.69% | 0.03% | $12.8B | Monthly |
| SCHP | Schwab U.S. TIPS ETF | Schwab | 9.17% | 0.03% | $15.6B | Monthly |
| SCHQ | Schwab Long-Term U.S. Treasury ETF | Schwab | 5.68% | 0.03% | $747M | Monthly |
| SCHR | Schwab Intermediate-Term U.S. Treasury ETF | Schwab | 3.98% | 0.03% | $13.0B | Monthly |
| SCHX | Schwab U.S. Large-Cap ETF | Schwab | 1.06% | 0.03% | $70.8B | Quarterly |
| SCHZ | Schwab U.S. Aggregate Bond ETF | Schwab | 4.18% | 0.03% | $10.4B | Monthly |
| SCMB | Schwab Municipal Bond ETF | Schwab | 3.44% | 0.03% | $3.9B | Monthly |
| SCYB | Schwab High Yield Bond ETF | Schwab | 6.87% | 0.03% | $2.6B | Monthly |
| SMBS | Schwab Mortgage-Backed Securities ETF | Schwab | 5.17% | 0.03% | $6.5B | Monthly |
| SPAB | State Street SPDR Portfolio Aggregate Bond ETF | State Street | 4.12% | 0.03% | $9.6B | Monthly |
| SPBO | State Street SPDR Portfolio Corporate Bond ETF | State Street | 5.06% | 0.03% | $2.0B | Monthly |
| SPDW | State Street SPDR Portfolio Developed World ex-US ETF | State Street | 2.90% | 0.03% | $40.5B | Semi-Annual |
| SPMD | State Street SPDR Portfolio S&P 400 Mid Cap ETF | State Street | 1.27% | 0.03% | $18.0B | Quarterly |
| SPSM | State Street SPDR Portfolio S&P 600 Small Cap ETF | State Street | 1.40% | 0.03% | $16.2B | Quarterly |
| SPTB | SPDR Series Trust | State Street | 4.10% | 0.03% | $282M | Monthly |
| SPTI | State Street SPDR Portfolio Intermediate Term Treasury ETF | State Street | 3.93% | 0.03% | $10.3B | Monthly |
| SPTL | State Street SPDR Portfolio Long Term Treasury ETF | State Street | 4.20% | 0.03% | $10.3B | Monthly |
| SPTM | State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF | State Street | 1.12% | 0.03% | $13.4B | Quarterly |
| SPTS | State Street SPDR Portfolio Short Term Treasury ETF | State Street | 3.87% | 0.03% | $5.9B | Monthly |
| STIP | iShares 0-5 Year TIPS Bond ETF | iShares | 13.34% | 0.03% | $15.8B | Monthly |
| VOO | Vanguard S&P 500 ETF | Vanguard | 1.17% | 0.03% | $1033.5B | Quarterly |
| VTG | Vanguard Total Treasury ETF | Vanguard | 3.30% | 0.03% | $139M | Monthly |
| VTI | Vanguard Total Stock Market ETF | Vanguard | 1.15% | 0.03% | $653.5B | Quarterly |
| XHLF | Bondbloxx Bloomberg Six Month Target Duration US Treasury ETF | BondBloxx | 3.65% | 0.03% | $1.9B | Monthly |
| XONE | Bondbloxx Bloomberg One Year Target Duration US Treasury ETF | BondBloxx | 3.94% | 0.03% | $762M | Monthly |
| BIV | Vanguard Intermediate-Term Bond ETF | Vanguard | 4.39% | 0.04% | $28.9B | Monthly |
| BKIE | BNY Mellon International Equity ETF | BNY Mellon | 3.07% | 0.04% | $1.2B | Quarterly |
| BKMC | BNY Mellon US Mid Cap Core Equity ETF | BNY Mellon | 1.71% | 0.04% | $658M | Quarterly |
| BKSE | BNY Mellon ETF Trust - BNY Mellon US Small Cap Core Equity ETF | BNY Mellon | 1.01% | 0.04% | $85M | Quarterly |
| BLV | Vanguard Long-Term Bond Fund | Vanguard | 4.87% | 0.04% | $5.9B | Monthly |
Frequently asked questions
What are the best low-cost dividend ETFs?
This page lists the top 40 ETFs in this category ranked by key metrics. The list includes funds from issuers like JPMorgan, State Street, iShares, Vanguard and more.
How often is this list updated?
The data on this page is refreshed regularly using the latest available distribution rates, expense ratios, and AUM figures. Last updated June 2026.
What is the average yield of these ETFs?
The average distribution yield across the 40 ETFs on this list is 3.60%. Individual yields range from 4.87% to 1.04%.
Why do expense ratios matter for dividend ETFs?
Every dollar paid in fees is a dollar not compounding in your portfolio. On a $100,000 investment, the difference between a 0.06% and a 0.50% expense ratio is roughly $440 per year—money that could be generating its own dividends if reinvested.
Can low-cost ETFs still offer good yields?
Yes. Many low-cost dividend ETFs yield 2-4%, which is competitive with savings accounts and CDs. While they won't match the 10%+ yields of covered call funds, their lower risk and lower fees often deliver better total returns over time.
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