For the past three years, investors have been loading up on the S&P 500 (^GSPC 1.22%), tech stocks, and the "Magnificent Seven." High-yield equity strategies haven't gotten a whole lot of interest, especially when the artificial intelligence (AI) boom is producing huge returns in semiconductor and other AI-adjacent areas of the market.
That has changed a bit as we kick off 2026. Tech has turned into only an average performer, while recent laggards, such as energy, materials, value, small-cap, and dividend stocks, have done very well. That's good news for income seekers and retirement investors, who have seen limited opportunities for outperformance lately but are suddenly looking at a more favorable environment now.
Vanguard has a number of intriguing ETFs that could fill in the high-yield slot in a retirement portfolio. Currently offering yields of up to 4%, here are three that deserve a look.
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1. Vanguard High Dividend Yield ETF
The Vanguard High Dividend Yield ETF (VYM 0.69%) is one of the cornerstones of the Vanguard dividend ETF lineup. Its simple strategy of targeting above-average yields from a broad universe of stocks provides the kind of diversified portfolio that investors can buy and hold for retirement.
NYSEMKT: VYM
Key Data Points
One of the advantages of this fund is that it's market cap-weighted. Some similar funds will yield-weight their portfolios. While that increases the amount of income the ETF will produce, it also exposes investors to the risk that some of these high yields are vulnerable to cuts, or they're the product of price declines. This ETF doesn't do that, which means the yield may be slightly more conservative.
On the downside, that cap-weighting strategy can also give big companies more influence even though they don't necessarily have the yield or dividend history of other stocks. This strategy can potentially dilute some of its effectiveness. But its overall diversification makes it a more stable way of achieving an above-average yield.
The Vanguard High Dividend Yield ETF has a current yield of 2.5%.
2. Vanguard International High Dividend Yield ETF
The Vanguard International High Dividend Yield ETF (VYMI 1.43%) is simply the non-U.S. version of the ETF above. It follows the same strategy, but just scours foreign developed and emerging markets for dividend stock opportunities.
NASDAQ: VYMI
Key Data Points
The fund has a diversified mix of geographic exposures. The ETF is currently about 80% developed and 20% in emerging markets. And it has a roughly equal allocation split between Europe and Asia (along with an 8% weighting to Canada). Since it uses the same market cap-weighting strategy, the fund's portfolio tilts heavily toward large caps and should provide investors some comfort that it's mostly targeting bigger, more established companies.
International stocks finally had a big year relative to the S&P 500 in 2025, and that trend has carried into the early stages of 2026. Given U.S. stock market dominance over the past several years, many investors remain underinvested in these markets. They do, however, provide important diversification benefits, often higher yields, and can have extended stretches of outperformance. For retirement savers, it's usually a good idea to spread out sources of income, and this ETF does a good job of that.
The Vanguard International High Dividend Yield ETF has a current yield of 4%.
3. Vanguard Real Estate ETF
The Vanguard Real Estate ETF (VNQ 0.43%) has been a popular way to boost portfolio income for years. By investing in real estate investment trusts (REITs), this fund often behaves differently than the S&P 500 and can often offer yields that are double or even triple that of the index.
NYSEMKT: VNQ
Key Data Points
The fund's top five sector holdings currently include REITs in healthcare, retail, industrial, telecom towers, and data centers. That means anybody who invests in this fund has a position in the companies that own and manage everything from hospitals to healthcare facilities to shopping centers to factories to AI-adjacent data centers. Real estate is considered a good portfolio diversifier, and this ETF provides solid, broad exposure to this space at a minimal cost.
For retirement savers, the yield is one of the major benefits of investing in REITs, but it's always wise to approach with caution. REITs can be especially sensitive to changes in interest rates and economic conditions.
The Vanguard Real Estate ETF has a current yield of 3.5%.
