Best Of
Best Monthly Dividend ETFs in 2026
Top-rated ETFs that pay dividends every month, ranked by yield, AUM, and cost.
Data updated June 2026 · 50 ETFs
Who this page is for
Best for
- Retirees matching distributions to monthly living expenses
- Income-focused investors who budget around predictable cash flow
- Investors who want more frequent compounding when reinvesting
Not a fit for
- Pure total-return investors — many monthly payers carry elevated expense ratios
- Tax-sensitive taxable accounts where frequent distributions complicate reporting
- Short-term traders — these funds are built for holding, not flipping
Analysis
The monthly dividend ETF category is dominated by large, well-established fixed-income funds from a handful of major issuers. Vanguard and iShares account for eight of the ten largest funds shown above, reflecting the deep investor preference for low-cost, index-based bond exposure with predictable monthly income. The category spans a wide range of strategies — from broad U.S. aggregate bond markets to international bonds, munis, and even one equity fund — suggesting that "monthly dividend" is as much a distribution mechanic as it is an asset class descriptor.
- BND holds the largest AUM among the funds shown above at $157.9B, edging out AGG ($135.9B) despite both offering nearly identical yields of 4.03% and 4.00%, respectively.
- BND and AGG also tie for the lowest expense ratio in the top 10 at 0.03%, alongside VCIT which delivers the highest yield among funds shown at 4.94% while carrying an expense ratio of just 0.04%.
- BNDX stands out for its relatively low yield of 2.82%, likely reflecting the currency-hedging costs and lower coupon environments in international bond markets.
- DIA is the sole equity fund in this top 10, with a yield of 3.26% and an expense ratio of 0.16% — notably the highest among the funds shown above.
- The category's average yield of 5.21% sits well above most of the top 10 yields shown, suggesting higher-yielding strategies elsewhere in the full 50-fund universe pull the average upward.
Investors in this category should be aware that bond-heavy monthly-pay funds carry interest rate sensitivity — rising rates can pressure NAV even as income remains steady. The presence of muni funds like MUB and VTEB introduces tax considerations that vary significantly by individual circumstance, and BNDX's lower yield reflects currency-hedging costs that passive yield screens may not fully surface.
AI-generated analysis — AI can make mistakes. Verify important information independently. Not investment advice. Learn more
Top picks
Top 3 monthly dividend ETFs by assets under management.
Yield distribution
Expense ratio distribution
Income projection
Estimated annual, monthly, and weekly income based on the average yield of 5.21% across these 50 ETFs. For illustration only—actual income will vary.
| Investment | Annual income | Monthly income | Weekly income |
|---|---|---|---|
| $10,000 | $521 | $43 | $10 |
| $25,000 | $1,301 | $108 | $25 |
| $50,000 | $2,603 | $217 | $50 |
| $100,000 | $5,206 | $434 | $100 |
Issuer breakdown
Distribution of ETFs by fund issuer. Larger issuers often offer lower expense ratios and higher liquidity.
All 50 ETFs
| Ticker | Name | Issuer | Yield | Expense ratio | AUM | Frequency |
|---|---|---|---|---|---|---|
| BND | Vanguard Total Bond Market ETF | Vanguard | 4.03% | 0.03% | $157.9B | Monthly |
| AGG | iShares Core U.S. Aggregate Bond ETF | iShares | 4.00% | 0.03% | $135.9B | Monthly |
| SGOV | iShares 0-3 Month Treasury Bond ETF | iShares | 3.57% | 0.07% | $95.2B | Monthly |
| BNDX | Vanguard Total International Bond ETF | Vanguard | 2.82% | 0.07% | $81.6B | Monthly |
| VCIT | Vanguard Intermediate-Term Corporate Bond ETF | Vanguard | 4.94% | 0.04% | $66.2B | Monthly |
| IEF | iShares 7-10 Year Treasury Bond ETF | iShares | 4.01% | 0.15% | $46.9B | Monthly |
| MUB | iShares National Muni Bond ETF | iShares | 3.12% | 0.05% | $45.2B | Monthly |
| BSV | Vanguard Short-Term Bond ETF | Vanguard | 4.11% | 0.04% | $45.1B | Monthly |
| VTEB | Vanguard Tax-Exempt Bond ETF | Vanguard | 3.28% | 0.05% | $45.0B | Monthly |
| DIA | State Street SPDR Dow Jones Industrial Average ETF Trust | State Street | 3.26% | 0.16% | $44.9B | Monthly |
| JEPI | JPMorgan Equity Premium Income ETF | JPMorgan | 8.32% | 0.35% | $44.3B | Monthly |
| VCSH | Vanguard Short-Term Corporate Bond ETF | Vanguard | 4.50% | 0.04% | $44.1B | Monthly |
| GOVT | iShares U.S. Treasury Bond ETF | iShares | 3.72% | 0.05% | $42.5B | Monthly |
| IUSB | iShares Core Total USD Bond Market ETF | iShares | 3.92% | 0.06% | $41.4B | Monthly |
| VGIT | Vanguard Intermediate-Term Treasury ETF | Vanguard | 3.92% | 0.04% | $41.0B | Monthly |
| TLT | iShares 20+ Year Treasury Bond ETF | iShares | 4.62% | 0.15% | $40.7B | Monthly |
| MBB | iShares MBS ETF | iShares | 4.21% | 0.04% | $39.3B | Monthly |
| JEPQ | JPMorgan Nasdaq Equity Premium Income ETF | JPMorgan | 11.40% | 0.35% | $39.0B | Monthly |
| VGSH | Vanguard Short-Term Treasury ETF | Vanguard | 3.81% | 0.04% | $29.4B | Monthly |
| LQD | iShares iBoxx $ Investment Grade Corporate Bond ETF | iShares | 4.53% | 0.14% | $29.2B | Monthly |
| BIV | Vanguard Intermediate-Term Bond ETF | Vanguard | 4.39% | 0.04% | $28.9B | Monthly |
| JAAA | Janus Henderson AAA CLO ETF | Janus Henderson | 4.69% | 0.21% | $28.1B | Monthly |
| USHY | iShares Broad USD High Yield Corporate Bond ETF | iShares | 6.80% | 0.08% | $27.7B | Monthly |
| FBND | Fidelity Total Bond ETF | Fidelity Investments | 4.43% | 0.36% | $26.0B | Monthly |
| SHY | iShares 1-3 Year Treasury Bond ETF | iShares | 3.55% | 0.15% | $25.3B | Monthly |
| IGSB | iShares 1-5 Year Investment Grade Corporate Bond ETF | iShares | 4.57% | 0.04% | $22.2B | Monthly |
| IEI | iShares 3-7 Year Treasury Bond ETF | iShares | 3.76% | 0.15% | $18.3B | Monthly |
| IGIB | iShares 5-10 Year Investment Grade Corporate Bond ETF | iShares | 4.87% | 0.04% | $18.3B | Monthly |
| USIG | iShares Broad USD Investment Grade Corporate Bond ETF | iShares | 4.84% | 0.04% | $17.4B | Monthly |
| USFR | WisdomTree Floating Rate Treasury Fund | WisdomTree | 3.61% | 0.15% | $17.3B | Monthly |
| PULS | PGIM Ultra Short Bond ETF | PGIM Investments | 4.30% | 0.15% | $17.2B | Monthly |
| DGRW | WisdomTree U.S. Quality Dividend Growth Fund | WisdomTree | 2.03% | 0.28% | $16.7B | Monthly |
| MINT | PIMCO Enhanced Short Maturity Active Exchange-Traded Fund | PIMCO | 3.87% | 0.35% | $16.2B | Monthly |
| BINC | iShares Flexible Income Active ETF | iShares | 5.48% | 0.40% | $16.1B | Monthly |
| HYG | iShares iBoxx $ High Yield Corporate Bond ETF | iShares | 6.15% | 0.49% | $16.1B | Monthly |
| STIP | iShares 0-5 Year TIPS Bond ETF | iShares | 13.34% | 0.03% | $15.8B | Monthly |
| SCHP | Schwab U.S. TIPS ETF | Schwab | 9.17% | 0.03% | $15.6B | Monthly |
| VMBS | Vanguard Mortgage-Backed Securities ETF | Vanguard | 4.17% | 0.04% | $15.3B | Monthly |
| TIP | iShares TIPS Bond ETF | iShares | 13.97% | 0.19% | $14.9B | Monthly |
| EMB | iShares JP Morgan USD Emerging Markets Bond ETF | iShares | 5.06% | 0.39% | $14.3B | Monthly |
| PYLD | PIMCO ETF Trust - PIMCO Multisector Bond Active Exchange-Traded Fund | PIMCO | 5.88% | 0.55% | $14.2B | Monthly |
| PFF | iShares Preferred and Income Securities ETF | iShares | 5.47% | 0.46% | $13.5B | Monthly |
| SCHR | Schwab Intermediate-Term U.S. Treasury ETF | Schwab | 3.98% | 0.03% | $13.0B | Monthly |
| JCPB | JPMorgan Core Plus Bond ETF | JPMorgan | 4.76% | 0.40% | $12.9B | Monthly |
| SCHO | Schwab Short-Term U.S. Treasury ETF | Schwab | 3.69% | 0.03% | $12.8B | Monthly |
| QQQI | NEOS Nasdaq-100 High Income ETF | NEOS | 14.42% | 0.68% | $12.5B | Monthly |
| SCHI | Schwab 5-10 Year Corporate Bond ETF | Schwab | 4.90% | 0.03% | $11.5B | Monthly |
| SPIB | State Street SPDR Portfolio Intermediate Term Corporate Bond ETF | State Street | 4.48% | 0.04% | $11.3B | Monthly |
| SUB | iShares Short-Term National Muni Bond ETF | iShares | 2.52% | 0.07% | $11.3B | Monthly |
| SPHY | SPDR Portfolio High Yield Bond ETF | State Street | 7.05% | 0.05% | $11.1B | Monthly |
Frequently asked questions
What are the best monthly dividend ETFs?
This page lists the top 50 ETFs in this category ranked by key metrics. The list includes funds from issuers like Vanguard, iShares 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 50 ETFs on this list is 5.21%. Individual yields range from 7.05% to 4.03%.
Why do some investors prefer monthly dividends?
Monthly dividends align with most household expenses (rent, utilities, subscriptions), making them practical for retirees and income-focused investors. They also allow for more frequent compounding when reinvested.
Are monthly dividend ETFs more expensive?
On average, yes. Monthly payers tend to use active strategies like covered calls or leverage, which carry higher expense ratios than passive quarterly index funds. Always compare the net yield (yield minus expense ratio) when evaluating.
What's the difference between distribution rate and SEC yield?
Distribution rate reflects actual cash paid out over the trailing 12 months (including return of capital), while SEC yield is a standardized 30-day measure of income earned from the portfolio's holdings. Distribution rate can overstate true income if it includes return of capital.
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