Many investors in 2025 need dependable passive income, and one outstanding way to get reliable regular dividends is to invest in exchange-traded funds (ETFs). Unlike open-end mutual funds, ETFs trade on major exchanges like stocks. They own financial assets such as stocks, bonds, currencies, debts, futures contracts, and commodities such as gold bars.
24/7 Wall Street Key Points:
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The December rate cut may be the last until the spring or summer.
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Inflation has stayed stubbornly high and above expectations.
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Passive income ETFs make sense for 2025.
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Is your portfolio generating sufficient passive income? You may want to meet with a financial advisor for a complete portfolio review. To get started, click here now. (sponsored)
One massive advantage to owning ETFs is that they can be sold anytime when the markets are trading. We screened our 24/7 Wall St. ETF research database and found six top funds that have these qualities:
- High dividend payout
- Trades at or at a discount to net asset value
- Are managed by major Wall Street firms
- Reasonable expense ratio
Six top funds hit our screens and make sense for investors looking for dependable, often monthly instead of quarterly, distributions.
JPMorgan Equity Premium Income
This gigantic fund has taken in billions since its inception in 2020 and is run by top portfolio managers at JPMorgan. JPMorgan Equity Premium Income ETF (NYSEArca: JEPI) seeks to achieve this objective by:
- Creating an actively managed portfolio of equity securities comprised significantly 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
Dividend yield = 7% paid monthly
NAV = $59.66
Expense ratio = 0.35%
Alerian MLP
This is an excellent way for investors to have energy exposure, as Alerian Master Limited Partnership ETF (NYSEArca: AMLP) will typically invest at least 90% of its total assets in securities that comprise the underlying index. The underlying index includes energy infrastructure MLPs that earn most of their cash flow from transporting, storing, and processing energy commodities.
Another huge plus is unlike individual MLP stocks, which send a K-1 for tax purposes and can be a hassle, this fund sends investors a 1099.
Dividend yield = 7.25% paid quarterly
NAV = $48.72
Expense ratio = 0.85%
Global X U.S. Preferred
This fund focuses on preferred stocks of top U.S. companies. Global X U.S. Preferred ETF (NYSEArca: PFFD) invests at least 80% of its assets in the securities of its underlying index. It supports at least 80% of its assets in preferred domestic securities, principally traded in or whose revenues are primarily from the U.S. The underlying index tracks the broad-based performance of the U.S. chosen securities market.
Dividend yield = 6.13% paid monthly
NAV = $19.66
Expense ratio = 0.23%
Global X SuperDividend REIT
Like the MLP fund with energy, Global X SuperDividend REIT ETF (NASDAQ: SRET) gives investors exposure to real estate. At least 80% of its total assets are in the securities of the underlying index, and American depositary receipts and global depositary receipts are based on these securities. The underlying index tracks the performance of REITs that rank among the highest-yielding REITs globally.
Dividend Yield = 7.72% paid monthly
NAV = $20.92
Expense ratio = 0.59%
iShares National Muni Bond
While much lower in yield, iShares National Muni Bond ETF (NYSEArca: MUB) is a perfect fund for investors seeking tax-free income. The underlying index includes municipal bonds, the interest of which is exempt from Federal income taxes and not subject to the alternative minimum tax.
Dividend Yield = 2.93% paid monthly.
NAV = $108.15
Expense ratio = 0.05%
Vanguard High Dividend Yield Index Fund
This is a perfect income ETF for more conservative investors. Vanguard High Dividend Yield Index Fund’s (NYSEArca: VYM) manager employs an indexing investment approach designed to track the index’s performance, consisting of common stocks of companies that generally pay higher than average dividends. The adviser attempts to replicate the target index by investing all, or substantially all, of the fund’s assets in the stocks that make up the index.
Dividend Yield = 2.70% paid quarterly
NAV = $131.11
Expense ratio = 0.06%
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