US News & World Report: “7 Best Income ETFs to Buy in 2026”
US News & World Report, Jan. 13, 2026 — Scroll down for today’s article by financial planner Marguerita Cheng, CEO of Blue Ocean Global Wealth and a US News columnist where she explains, “Income ETFs are attractive to investors who prioritize stability and cash flow over the pursuit of market-beating returns.”
Why does Warren Buffett prefer stocks over an asset like gold? The simple answer: cash flow.
With gold, you only earn capital gains when you sell it for a profit. However, you don’t need to sell your stocks to earn an income. You can hold on to your stocks while earning a steady income in the form of dividends for as long as you want.
The same thing applies to bonds (and other fixed-income securities) and real estate investment trusts (REITs).
If you are one of those prioritizing high and stable cash flows, then you need to add the right income exchange-traded funds, or ETFs, to your portfolio. Income ETFs are funds that invest in income-yielding or cash-flow-generating securities, whether they’re dividends or interest payments.
Why Should You Consider Income ETFs?
If you are a retiree or nearing retirement, income from your portfolio can help to finance your retirement budget. Even if you are not near retirement, you may use the monthly or quarterly distributions from income ETFs to meet certain recurring needs and wants (for example, paying your children’s school fees).
You may also prioritize regular income so you can reinvest it in the market and profit from the “magic” of compound interest. For stock investors, this approach is known as dividend growth investing.
Additionally, income investing can be a way to reduce the risk exposure of your portfolio, especially in bear markets. Investors often view consistent and growing dividend payments as a sign that a company is stable and able to generate profits across various economic cycles. Thus, when the stock market is volatile, investors often reallocate their equity portfolio to defensive stocks, which are known for their dividend consistency.