Most exchange-traded funds (ETFs) pay some form of distribution, and that stems from their legal structure. As most ETFs are regulated investment companies, they are required to pay out a vast majority of taxable income to shareholders by year-end.
Over time, annual payouts have become less common in ETFs as investors increasingly prefer more consistent income. Since the launch of the first U.S. ETF in January 1993, issuers have adapted by moving toward quarterly distributions. These are now standard across much of the industry.
ETF managers either estimate year-end totals, or apply a formula based on expected dividend yields or anticipated option premiums to provide a steadier stream of income. This evolution has paved the way for a smaller set of ETFs that go even further by paying weekly distributions.
Here are six of the best weekly paying ETFs to buy today.
This post originally appeared at U.S. News & World Report.