Exchange-traded funds (ETFs) have grown in popularity, with more ETFs listed than individual stocks on the NYSE. ETFs offer diversification and trade like stocks, making them liquid and tax-efficient. The highest-yielding ETF in 2025 is the Invesco KBW Premium Yield Equity REIT ETF (NASDAQ: KBWY), focusing on real estate investment trusts. While KBWY has a strong dividend yield of over 9.6%, it faces risks from market fluctuations. Investors should approach high dividend yields with caution. Despite its attractive yield, KBWY may not be a stable long-term investment due to its exposure to shaky sectors like office space and healthcare.

Read more at Nasdaq: Which ETF Has the Highest Dividend Yield in 2025? And Is It a Buy Now?