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Many investors in 2025 need dependable passive income, especially those getting ready to retire, and one outstanding way to achieve this is to invest in exchange-traded funds (ETFs). Unlike open-end mutual funds, ETFs trade on major exchanges like stocks. They own financial assets, including stocks, bonds, currencies, debt, futures contracts, and commodities such as gold bars. Having more passive income can help cover rising costs, such as mortgages, insurance, taxes, and other expenses. This makes it easier for investors to set aside money for future needs as they prepare for or begin retirement. Dependable recurring dividends from quality monthly pay, high-yield ETFs are a recipe for success.
With the 2025 rate cuts now complete, many investors are looking to add quality high-yield monthly-pay ETFs.
Fed Chair Powell was less hawkish than expected in his post-cut remarks and indicated that a 2026 cut could be coming.
High-yield ETFs with monthly dividends should get a boost with the recent rate cuts.
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One significant advantage of owning passive-income ETFs is that they can be sold at any time when markets are trading. We screened our 24/7 Wall St. ETF research database and found five top funds that have these qualities:
High dividend payout every 30 days
Trades at or near a discount to net asset value
Major Wall Street firms manage them
Reasonable expense ratio
Five top funds hit our screens, making sense for investors seeking dependable, monthly distributions rather than quarterly ones. NAV means the current net asset value of the fund.
This massive fund has raised billions since its inception in 2020 and is managed by top portfolio managers at JPMorgan. The JPMorgan Equity Premium Income (NYSEArca: JEPI) ETF holds about 125 stocks, including major tech names, making it ideal for those seeking higher income with reasonable risk.
The fund seeks to achieve this objective by:
Creating an actively managed portfolio of equity securities significantly comprised of those included in the fund’s primary benchmark, the Standard & Poor’s 500 Total Return Index (S&P 500 Index)
Utilizing equity-linked notes (ELNs), selling call options with exposure to the S&P 500 Index
Run by one of the top companies in the industry, the Invesco S&P 500 High Dividend Low Volatility ETF (NYSEArca: SPHD) is an excellent idea for conservative accounts as the fund focuses on stability by selecting the 50 least volatile stocks from the 75 highest-yielding S&P 500 companies. The portfolio managers focus on defensive sectors such as utilities, consumer staples, and real estate, making it ideal for conservative investors who prioritize stability over maximum yield.
The fund generally will invest at least 90% of its total assets in the securities that comprise the underlying index. Strictly in accordance with its guidelines and mandated procedures, S&P Dow Jones Indices LLC compiles, maintains, and calculates the underlying index, which measures the performance of the 50 least volatile high-yielding constituents of the S&P 500 Index over the past year.
This fund invests at least 80% of its total assets in the securities of the underlying index, as well as in American depositary receipts (ADRs) and global depositary receipts (GDRs) based on these securities. The underlying index of the Global X SuperDividend ETF (NASDAQ: SDIV) tracks the performance of 100 equally weighted companies that rank among the highest-yielding equity securities worldwide, including those from emerging markets.
Run by one of the largest companies in the ETF arena, iShares Preferred and Income Securities ETF (NASDAQ: PFF) is another solid choice for more conservative growth-and-income investors. The fund invests in preferred stocks, which combine bond-like characteristics with equity ownership. With over $14 billion in assets and 450+ holdings, it provides a steady monthly income with moderate risk. Though it’s sensitive to interest rate changes, with rates trending lower, it’s a solid investment now.
While investors may not be as familiar with this investment company, this actively managed fund combines quality dividend stocks with covered call options. Its beta of 0.72 indicates lower volatility, making it an attractive option for conservative risk-averse retirees seeking both income and capital preservation. Amplify CWP Enhanced Dividend Income ETF (NYSEArca: DIVO) invests at least 80% of its net assets in dividend-paying U.S. exchange-traded equity securities. It will opportunistically utilize an “option strategy” consisting of writing or selling U.S. exchange-traded covered call options on such Equity Securities. The fund is non-diversified. The fund has outperformed the category, year-to-date, over one year and over three years.
Boomers Seeking Passive Income Are Buying 5 Safe High-Yield Monthly Pay ETFs
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