There’s no query that probably the greatest methods to construct wealth over the lengthy haul is by producing passive revenue, particularly when that revenue is dependable and doesn’t require fixed monitoring or lively decision-making. That’s why among the finest investments you should purchase for passive revenue in 2026 are high-yield exchange-traded funds (ETFs).
Proudly owning investments that earn you dependable passive revenue is all the time essential, however in 2026, it issues greater than regular.
Between geopolitical tensions, uncertainty round rates of interestand markets which have already rallied exhausting in sure areas, it is sensible to contemplate shoring up your portfolio and shopping for higher-yield investments that may assist mitigate volatility.
ETFs make this even simpler as a result of they provide instantaneous diversification, decrease single-stock danger, and a extra hands-off method to construct revenue.
That’s why in case you’re seeking to increase your passive revenue in 2026 with out taking up pointless danger, two of my favorite high-yield investments aren’t truly shares; they’re high-quality ETFs.
The most effective high-yield ETFs to purchase for passive revenue in 2026
In the event you’re seeking to increase the passive revenue your portfolio generates in 2026, there’s no query that probably the greatest ETFs to contemplate is BMO Canadian Excessive Dividend Coated Name ETF (TSX:ZWC).
There are two most important explanation why the ZWC ETF is a prime decide for dividend traders right this moment. First, it holds a diversified portfolio of high-quality Canadian dividend-paying shares throughout sectors like financials, utilities, telecommunications, and power. These are mature, well-established companies that already generate sturdy and predictable money circulate.
That’s important, as a result of these shares on their very own already present traders with sustainable dividends and excessive yields.
Why the ZWC ETF is particularly made for passive-income seekers, although, isn’t simply because it owns a portfolio of high-quality dividend shares. The opposite most important purpose is the coated name technique it makes use of.
With a view to increase the revenue, it returns to traders, the fund writes coated calls on a portion of its holdings, accumulating possibility premiums in change for giving up some upside if these shares rally sharply.
These premiums are then added to the dividends the underlying shares already generate, which is what permits the ZWC to pay a considerably increased distribution than a standard dividend ETF.
The fund additionally costs a better supervisor expense ratio (MER) due to this technique, however even with a MER of 0.72%, the ZWC nonetheless affords traders a internet yield of greater than 5.1% right this moment, displaying why it’s probably the greatest high-yield ETFs that passive revenue seekers should buy in 2026.
And whereas traders can select to purchase coated name ETFs at any time, they’re notably engaging looking forward to the remainder of 2026.
With a lot uncertainty and plenty of shares already buying and selling at or above their truthful worth, markets might grind increased, however a large bull run isn’t assured. In that form of setting, buying and selling some upside for speedy, dependable revenue could make quite a lot of sense.
The most effective high-income ETFs for relative security
Unsurprisingly, along with the ZWC ETF, one other prime high-yield fund I like in 2026 for most of the similar causes is BMO Coated Name Canadian Banks ETF (TSX: ZWB).
The ZWB ETF is structured precisely just like the ZWC, besides it focuses solely on Canada’s main banks. That is key as a result of financial institution shares are well-known as among the finest dividend shares to personal for the lengthy haul, since Canadian banks are among the most secure and dominant monetary establishments on the planet.
They function in a extremely regulated setting, generate huge quantities of recurring income, and have an extended historical past of paying dividends by means of a number of financial cycles.
The ZWB ETF is right as a result of it affords publicity to all the main Canadian banks without delay, which helps cut back single-bank danger whereas nonetheless benefiting from the sector’s total energy. And with its coated name technique, the ETF at present affords a internet yield of 4.7%.
So, in case you’re going to commerce off some capital good points potential for increased revenue, 2026 seems like precisely the form of 12 months the place that trade-off could make sense.