Income investing has taken on renewed urgency as we move deeper into 2026. High-yield dividend ETFs can perform better than expected as interest rates come down.
Investors with long-term plans are looking at higher-yielding assets because these are the ones that are positioned to perform the best when interest rates decline. The market tends to get hungry for yield when inflation is high, and Treasuries no longer yield a healthy amount. Right now, inflation is barely tolerable, and Treasury yields are holding up. However, prolonged rate cuts will lead to a thirst for more yield, and Wall Street will have nowhere but the market to turn to in order to quench that thirst.
Here are three ETFs to look into if you want to buy ahead of the herd.
This post originally appeared at 24/7 Wall St.