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For income-focused investors, dividend ETFs can be an attractive option for generating steady cash flow. These funds offer exposure to a diversified portfolio of dividend-paying companies, often with lower volatility than individual stocks. Let’s take a look at three reliable dividend ETFs with solid track records and one risky, ultra-high-yield option for those willing to take on more risk in pursuit of higher income.

Reliable Option 1: Invesco High Yield Equity Dividend Achievers ETF

The Invesco High Yield Equity Dividend Achievers ETF (NASDAQ:PEY) focuses on companies with a history of consistently growing dividends. With a trailing 12-month yield of 5.03% and a 10-year annualized total return of 7.79%, PEY offers an attractive combination of income and growth.

The fund’s top holdings include Walgreens Boots Alliance Inc. (WBA), Verizon Communications Inc. (VZ) and Universal Corp/VA (UVV).

Reliable Option 2: ProShares S&P 500 Dividend Aristocrats ETF

The ProShares S&P 500 Dividend Aristocrats ETF (BATS:NOBL) invests in companies that have increased dividends for at least 25 consecutive years. While its trailing 12-month yield of 2.09% is lower than some other dividend ETFs, NOBL’s focus on consistent dividend growers has helped it deliver an impressive 10-year annualized total return of 9.02%.

Top holdings include Albemarle Corp. (ALB), Dover Corp. (DOV), and 3M Co.

Check this out: Passive income investments are one of the most trusted methods for riding out a recession, so it’s no surprise that people are turning to high-yield real estate notes that pay a fixed 7.5% to 9%.

Reliable Option 3: SPDR Portfolio S&P 500 High Dividend ETF

The SPDR Portfolio S&P 500 High Dividend ETF (NYSE:SPYD) targets the 80 highest-yielding stocks within the S&P 500 index. With a trailing 12-month yield of 4.61% and an annualized total return of 8.03% since its inception in October 2015, SPYD offers a compelling blend of high income and capital appreciation potential.

The fund’s top holdings include Hasbro Inc. (HAS), Public Service Enterprise Group (PEG) and Iron Mountain Inc. (IRM).

Risky, Ultra High-Yield Option: VanEck Vectors Mortgage REIT Income ETF

The VanEck Vectors Mortgage REIT Income ETF (NYSE:MORT) is an intriguing option for investors willing to take on more risk in exchange for potentially higher yields. This fund invests in mortgage real estate investment trusts (mREITs), which typically offer much higher yields than traditional equity REITs. MORT currently boasts a trailing 12-month yield of 11.85%, but its 10-year price loss of 54.51% highlights the risks associated with this asset class. mREITs are particularly sensitive to changes in interest rates and regulatory environments, making them a more volatile and speculative investment.

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Top holdings include Annaly Capital Management Inc. (NLY), AGNC Investment Corp (AGNC) and Starwood Property Trust Inc. (STWD).

Alternative High-Yield Options

While dividend ETFs can be a great source of passive income, investors seeking higher yields may want to consider alternative investment opportunities. Two such options are Arrived and Basecamp Alpine Notes.

Arrived is a real estate investment platform that allows individuals to invest in shares of rental properties for as little as $100. With an average dividend yield of 4.2%, Arrived offers investors the potential for steady rental income and long-term appreciation without the hassles of being a landlord. Investors who want to take an even more passive approach can diversify their real estate holdings with Arrived’s Single Family Residential Fund. The fund offers equity in several rental properties across the most promising real estate markets. View investment properties currently available on Arrived.

Basecamp Alpine Notes, offered by EquityMultiple, are short-term, high-yield investment opportunities backed by real estate. These notes, exclusive to first-time investors on the platform, offer a target APY of 9.00% over a 3-month term with a minimum investment of just $1,000. EquityMultiple’s first loss protection feature aligns the platform’s interests with those of its investors, as the company would lose its entire investment before investors lose a single dollar in the event of a default. See how much you could be earning with Basecamp Alpine Notes. 

Dividend ETFs can be a powerful tool for generating passive income, but it’s essential to understand the risks and rewards associated with each option. While the three reliable ETFs discussed above offer a balance of income and stability, the risky, ultra high-yield MORT ETF demonstrates the potential pitfalls of chasing yield without proper due diligence. For investors seeking even higher yields and willing to explore alternative investments, platforms like Arrived and EquityMultiple’s Basecamp Alpine Notes provide intriguing opportunities to diversify one’s income streams beyond traditional dividend ETFs.

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This article 3 Reliable and 1 Risky, Ultra High-Yield Dividend ETFs To Boost Your Passive Income Game originally appeared on Benzinga.com