Key Factors
ETFs that pay aggressive dividends aren’t usually related to robust returns, however three funds supply a mix of each advantages.
VEA and EFA take related approaches, specializing in non-U.S. developed markets, and have every outperformed the S&P 500’s returns this yr.
SPYV, in contrast, focuses on large-cap U.S. worth shares and has had a slower yr, however it’s constructing momentum and offering a pleasant dividend bonus.

Dividend shares aren’t historically identified for his or her share worth rallies. Corporations making distributions to stockholders are typically steady and well-established, with their greatest progress days lengthy up to now. Equally, exchange-traded funds (ETFs) that maintain baskets of dividend shares have a tendency to offer buyers with a wholesome passive earnings stream merely for proudly owning shares somewhat than capital appreciation.
Often, although, buyers can discover the perfect of each worlds. Vanguard FTSE Developed Markets ETF (NYSEARCA: VEA), iShares MSCI EAFE ETF (NYSEARCA: EFA), and SPDR S&P 500 Worth ETF (NYSEARCA: SPYV) are three ETFs that pay noteworthy dividends and ship notable capital appreciation. Whereas not the very best of any ETF making distributions, the dividends are nonetheless sufficient to offer a compelling perk for shareholders—particularly contemplating these ETFs are buying and selling at or close to year-to-date (YTD) highs after experiencing sizable rallies.
VEA: Rides International Market Surge With a Aggressive Yield
VEA capitalizes on the robust efficiency of many worldwide fairness markets in 2025, a few of which have outpaced the S&P 500’s already strong 15% returns YTD. 
The fund generally is a long-term funding possibility for buyers looking for entry to non-U.S. equities. Like many different broad-based Vanguard ETFs, it boasts a extremely aggressive expense ratio—simply 0.03% per yr.
Comprised of practically 4,000 complete shares, VEA gives a extremely diversified group of shares at a low value.
The fund’s geographic and inventory mandates are expansive, because it holds firms throughout the market capitalization spectrum from Canada, Europe, and elements of the Pacific, with European shares comprising 52% of its holdings. Japan is the one largest nation by portfolio allocation, accounting for about 21% of the portfolio.
VEA pays out a dividend yield of two.74%, which is sort of excessive for a fund that does not particularly make use of a dividend technique. On high of that, the fund has rallied by near 29% YTD, or about twice the return fee of the broader U.S. market throughout that interval.
EFA: Giant-Cap Worldwide Focus With Robust 2025 Returns
Using an identical strategy to VEA, EFA distinguishes itself with its large-cap focus. Each funds are sizable and commerce very actively, though EFA’s buying and selling quantity tends to be greater than VEA’s, making it a main alternative for merchants seeking to transfer out and in of positions extra steadily.
EFA’s basket of shares will not be as intensive as VEA’s, however with practically 1,000 holdings, it nonetheless gives distinctive diversification. Whereas the portfolio focuses on European names, Japanese shares signify the most important portion of the portfolio, at roughly 22%. The fund additionally invests in a smaller proportion of Australian equities, which can enchantment to buyers looking for a selected geographic tilt.
The place EFA falls brief a bit is in its annual payment, which is considerably greater at 0.32%. Nonetheless, with an annual dividend yield of two.7% and YTD returns of practically 29%, there are many advantages to contemplating this fund nonetheless.
SPYV: Combines U.S. Worth Investing and Earnings Potential
The SPYV adopts a unique strategy from the 2 above. Apart from its unique give attention to U.S. equities, SPYV additionally narrows the search additional by monitoring large-cap shares with worth traits comparable to price-to-earnings and price-to-sales ratios. 
Though its portfolio includes practically 400 positions, SPYV prioritizes three main firms: Apple Inc. (NASDAQ: AAPL), Microsoft Corp. (NASDAQ: MSFT), and Amazon.com Inc. (NASDAQ: AMZN) collectively signify roughly 20% of invested belongings.
At 1.83%, SPYV’s dividend yield is barely decrease than that of the funds above, however it’s nonetheless a pleasant bonus for buyers interested by a worth play. SPYV’s momentum has been accelerating after an early-2025 dip, and the fund is up about 13% YTD.
With an annual payment of 0.04%, SPYV could also be a very good buy-and-hold possibility for buyers seeking to seize undervalued shares throughout sectors, with a little bit of a passive earnings profit thrown in for good measure.

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Corporations Talked about in This Article:CompanyCurrent PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Value TargetVanguard FTSE Developed Markets ETF (VEA)$59.59-0.5percent2.82percent16.34Hold$59.77Amazon.com (AMZN)$221.99-0.3percent0.09percent33.82Moderate Purchase$294.70Apple (AAPL)$270.01+1.0percent0.39percent40.98Moderate Purchase$278.22iShares MSCI EAFE ETF (EFA)$92.33-0.5percent2.78percent16.48N/AN/AMicrosoft (MSFT)$488.65-1.0percent0.74percent34.77Moderate Purchase$634.33SPDR Portfolio S&P 500 Worth ETF (SPYV)$55.11-0.4percent1.87percent20.50Moderate Purchase$55.42

About Nathan ReiffExperienceNathan Reiff has been a contributing author for DividendStocks.com since 2024.
Skilled Background: Nathan Reiff is a monetary author and analyst with greater than a decade of expertise investing and learning the markets via self-guided studying and academic sources from DividendStocks.com and past. He started his profession within the search engine optimisation and cryptocurrency sectors earlier than increasing into basic finance and fairness analysis as his curiosity in investing deepened.
Credentials: He holds a Bachelor of Arts and Physician of Musical Arts from Yale College and a Grasp of Music from the College of Michigan.
Finance Expertise: Nathan has been a contributing author for DividendStocks.com since 2024. He’s additionally a long-time contributor to Investopedia and Decrypt, the place he has written extensively on subjects together with ETFs, cryptocurrencies, expertise, actual property, various power, and client staples.
Writing Focus: He makes a speciality of elementary evaluation, dividend shares, ETFs, and rising monetary tendencies. His work bridges conventional markets with digital innovation, serving to readers navigate all the things from blockchain to blue-chip equities.
Funding Strategy: Nathan follows a long-term, fundamentals-first investing philosophy, emphasizing macroeconomic context, firm efficiency, and sector dynamics.
Inspiration: Nathan has realized an incredible quantity concerning the inventory market from monetary writers and academic sources and is raring to assist encourage a brand new technology of buyers via his writing.
Enjoyable Reality: He’s an avid prepare dinner and baker who brings the identical creativity and precision to the kitchen that he does to monetary evaluation.
Areas of Experience: Basic evaluation, ETFs, expertise, retail, client staples, dividends, cryptocurrencies
EducationDoctor of Musical Arts, Yale College, New Haven, Connecticut; Bachelor of Arts, Yale College, New Haven, Connecticut; Grasp of Music, College of Michigan, Ann Arbor, Michigan