Generating stable and consistently growing passive income is undoubtedly one of the smartest ways to build wealth over the long term. That’s why finding investments to buy, like high-yield exchange-traded funds (ETFs), which are specifically made for passive income seekers, gives you a ton of flexibility.
For example, you can reinvest those dividends immediately to help your portfolio compound faster, use them for living expenses without selling shares, or just use that consistent income to build a cash position ahead of the next market correction and buying opportunity.
This is the case for any dividend-paying stock. However, ETFs can make this even easier for investors because they spread risk across many holdings.
That’s why high-quality ETFs that offer an attractive yield are some of the best investments to buy to boost your passive income. ETFs give you instant diversification, low costs compared to active funds, and professional management without the hassle of picking individual stocks yourself.
High-yield investing isn’t about chasing the absolute highest payouts. In fact, an exceptionally high yield is often a red flag that the company’s dividend is probably unsustainable. Instead, high-yield investing is about finding solid, reliable sources of income that can keep coming even if markets get choppy.
So, if you’re looking for reliable, high-yield ETFs to buy now that will significantly boost the passive income your portfolio generates, here are two of my favourite picks.
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One of the best ETFs that passive income seekers can buy
There’s no question that one of the best ETFs dividend investors can buy and hold for the long haul is BMO Canadian High Dividend Covered Call ETF (TSX: ZWC).
The ZWC is ideal for many reasons. First, it holds a portfolio of high-quality and reliable Canadian companies with well-established operations that allow them to pay strong, consistent and often growing dividends. And because the fund offers instant diversification, you gain exposure to some of the best companies in the most reliable industries, such as financials, utilities, energy, and telecoms.
And while these stocks on their own would generate a significant yield for investors, what really boosts the passive income that the ZWC ETF generates is its covered call strategy.
That’s why it’s easily one of my favourite ETFs to buy for high-yield passive income. The fund is constantly selling call options on a portion of its holdings.
A covered call means you own the stock and sell someone the right to buy it from you at a set price in the future. In exchange, you collect an upfront premium from the buyer. The reason you sell these call options is specifically to collect those extra premiums, which is what boosts the overall yield significantly.
The trade-off for investors is that some of your capital gains potential will be capped if stocks rally hard. However, in a sideways or moderate-growth year like 2026 looks to be, that extra income often outweighs the limited capital gains potential, which is another reason it’s one of my favourite ETFs to buy in 2026.
So, if you’re looking to boost the passive income your portfolio generates with a reliable high-yield ETF, the ZWC currently offers a yield of roughly 5.6%.
Another top covered call ETF to buy now
In addition to the ZWC, another high-quality ETF that can boost your passive income significantly is BMO Covered Call Canadian Banks ETF (TSX: ZWB).
The ZWB ETF invests in the major Canadian banks, often holding them directly or through an equal-weighted banks ETF for balance. And while the fund is less diversified than the ZWC because it only invests in one sector, banks are some of the most stable and profitable companies in the Canadian economy.
In fact, Canadian banks are renowned for their stability thanks to the tightly regulated market they operate in, their strong balance sheets, consistent earnings, and long history of paying and growing dividends even through recessions.
Meanwhile, the fund works exactly the same way as the ZWC. It sells call options to collect premiums, which lifts the overall payout. So, while an equal weight banks ETF might offer a net yield of roughly 2.7%, the ZWB offers a yield of 5.2%.
Therefore, if you’re looking for a reliable, high-yield ETF that can boost your income in 2026, the ZWB is undoubtedly one of my favourite picks.
