Dividend exchange-traded funds (ETFs) are used to invest in a pool of high dividend-paying stocks. These stocks can span a range of economic sectors and industries of either domestic or international domains. However, they tend to be associated with companies with a strong history of dividend increases, essentially meaning that high dividend ETF funds are usually associated with bigger, less-risky, blue-chip firms. As a result, these funds are favored not only by income-seeking investors who are more risk-averse but also by those who want to balance riskier investments in their portfolio.

• Fidelity NASDAQ Composite Index Track (ONEQ)
  The issuing company of this high dividend ETF is Fidelity. It has an expense ratio of 0.21 percent with an annual dividend yield of 1.79 percent and a 3-month average daily trading volume of 37,090 shares Assets under management amount to $2,488.6 million. ONEQ is a dividend ETF investing in stocks of U.S. companies. It has a variety of market capitalizations and follows a blended strategy by investing in both value stocks and growth.
• First Trust NASDAQ Technology Dividend Index Fund (TDIV)
  With an annual dividend yield of 2.19 percent, First Trust NASDAQ has an expense ratio of 0.50 percent. It has a 3-month average daily trading volume of 93,949 shares. Its assets under management are worth $1,197.3 and the issuing company is First Trust. Focused on stocks of large-cap U.S. technology companies, this fund also follows a blended strategy.
• Global X YieldCo (YLCO)
  This high dividend ETF fund has an expense ratio of 0.65 percent and an annual dividend yield of 2.85 percent. Global X YieldCo has assets under management worth $37.2 million. Its 3-month average daily trading volume is of 24,905 shares. YLCO majorly focuses on the global alternative energy sector, comprising of companies involved in the production and distribution of hydroelectric, wind, solar, or geothermal energy. It is considered a multi-cap ETF as it invests in stocks of companies with a variety of market caps, following a blended value/growth strategy.
• WisdomTree U.S. SmallCap Dividend Fund (DES)
  A smart investor usually diversifies their investment with the typical large-cap dividend ETF and small-cap dividend ETF. DES is one such high dividend ETFs that can accomplish this goal. DES tracks the WisdomTree SmallCap Dividend Index comprising of the companies with the bottom 25 percent of the market capitalization. It has an annual yield of 2.57 percent and the expense ratio is 0.38 percent.

It is important to remember that the most significant aspect of selecting the best ETFs is to select the investment that best coincides with your risk tolerance and time horizon. Although high yields can be an important factor in choosing the best yielding dividend ETFs, diversification of investments can be more important.