Federal Reserve likely to cut interest rates, making high-yielding income investments crucial. Two ETFs offer yields 2-3 times greater than S&P 500 average, backed by diversified portfolio of serial dividend growers. Traders predict Fed’s third rate cut of 2025, with more expected in 2026.

Schwab U.S. Dividend Equity ETF, launched in 2011, tracks Dow Jones U.S. Dividend 100 Index of companies with 10+ years of annual dividend growth. Fund focuses on consistent dividend growers with strong fundamentals, conducting monthly reviews and removing stocks that cancel dividends.

Schwab U.S. Dividend Equity ETF yields 3.8%, above S&P 500 average, with top holdings like Coca-Cola, Texas Instruments, and AbbVie raising dividends in 2025. Fund boasts 12.17% average annual return since inception and low 0.06% expense ratio.

SPDR S&P Dividend ETF tracks S&P High Yield Dividend Aristocrats® Index, selecting stocks with 20+ years of dividend increases. Fund holds top holdings like Verizon, Chevron, and Target, offering average annual return of 8.65% since 2005 inception.

SPDR S&P Dividend ETF underperformed S&P 500 in 2025 due to limited tech exposure and emphasis on industrials, consumer staples, and utilities sectors. Fund includes real estate investment trusts, benefiting from falling interest rates with 2.6% yield and 0.35% expense ratio.

Schwab U.S. Dividend Equity ETF offers lower expense ratio and higher yield, attracting short-to-medium term investors. Both funds provide above-average yields that could grow significantly amid falling interest rates, presenting opportunities for income investors.

Read more at Yahoo Finance: 2 High-Yield Dividend ETFs to Buy Today