Exchange-traded funds (ETFs) that pay high dividends are becoming increasingly popular with investors looking to supplement their income. ETFs are a type of investment fund that holds a variety of assets, including stocks, commodities, and bonds. Unlike traditional mutual funds, ETFs trade on exchanges and can be bought and sold at any time during the trading day.

ETFs with high dividends offer numerous benefits that make them attractive to investors. One of the most appealing aspects is the potential for steady income. High-dividend ETFs often pay out regular dividends and can provide a steady stream of income regardless of swings in the stock market. Many of these funds pay out dividends on a quarterly or monthly basis, making it easy for investors to plan for regular payments.

Another noteworthy benefit of ETFs with high dividends is that they often feature an additional layer of risk protection. By diversifying the underlying assets within the ETF, investors can reduce their exposure to specific companies, sectors, or asset classes that perform poorly. Holding investments that may cancel each other out can be especially beneficial if one sector of the market is going through a downturn.

High-dividend ETFs can also be a great