All of us strive for a higher retirement income, and the sooner we start planning for it, the easier it is. If you have enough time, you can build a well-balanced portfolio of assets that will continue to generate passive income through dividends. The current market is inclined towards exchange-traded funds (ETFs) that carry a strong yield and have a diversified portfolio. They are easy to trade like stocks and have a low cost. While you can generate a significant amount of income through dividends from dividend-paying stocks, ETFs carry lower risk, and some pay monthly dividends. There are ETFs that have a yield higher than 5% or 6%, which can outperform the market. The S&P 500 index has a yield of only 1.2%. Here are three ETFs that can generate decades of passive income.
Fidelity High Dividend ETF
Yield- 2.98%
The Fidelity High Dividend ETF (NYSEARCA:FDVV | FDVV Price Prediction) was launched in 2016 and offers a broad exposure to the All Cap Value category. It is a smart beta ETF managed by the professional experts at Fidelity and has $6.9 billion in assets under management. The ETF aims to match the performance of the Fidelity Core Dividend Index. It invests in large-and mid-cap high-dividend-paying companies that are expected to grow their dividends. The fund invests in 121 stocks including some of the top dividend companies.
FDVV has a yield of 2.98% and an expense ratio of 0.16%, making it one of the cheaper options in the industry. While ETFs are designed to offer diversified exposure to reduce risk, FDVV offers ultimate diversification through multi-sector holdings. About 25.32% of the portfolio is in the technology sector, followed by financials (19.21%) and consumer defensive (12.59%).
Its top 10 holdings account for 32.69% of the total assets under management. Taking into account the individual holdings, Nvidia has an allocation of 6.32%, followed by Microsoft (5.57%) and Apple (5.09%). These companies offer excellent growth but it also holds dividend-paying companies like Exxon Mobil, Broadcom, and Philip Morris.
The ETF added about 11.20% year-to-date and 10% over the last 12 months. It is trading for $55.58 as of writing and has a 52-week high and low between $55.92 and $42.84. Its 1-year return is 15.02%, and its 3-year return is 18.94%.
Schwab U.S. Dividend Equity ETF
Yield-3.81%
A hot ETF today, Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD) has an attractive yield of 3.81% and works just like a dividend investor would. It offers an ideal balance of quality, yield, and growth. SCHD invests in companies that have a history of rising dividend and share prices. It only picks stocks that have raised dividends for at least a decade and then creates a composite score based on the cash flow to total debt, dividend yield, return on equity, and the five-year dividend growth. Through a market-cap weighting approach, it picks the top 100 companies.
With SCHD, you get to own the biggest and the best U.S. companies without worrying about individual stock performance. The fund has $71.7 billion in assets under management and holds 103 companies. Its highest allocation lies in the energy sector (19.23%), followed by consumer staples (18.81%) and healthcare (15.53%). It only invests 9% in the technology sector. SCHD’s top 10 holdings constitute 41% of the portfolio, and it includes companies like AbbVie, Chevron, PepsiCo, Cisco, Verizon Communications, and Home Depot.
The ETF has an NAV of $27.36; it has remained flat in 2025 and is down 3% over the past 12 months. It has a 52-week high of $29 and a 52-week low of $23. It has generated an average 3-year return of 9.34% and a 5-year return of 10.61%. The fund has a low expense ratio of 0.06%.
The JPMorgan Equity Premium Income ETF
Yield- 7.27%
An excellent ETF by JPMorgan, the The JPMorgan Equity Premium Income ETF (NYSEARCA:JEPI) is a covered call ETF. It has garnered investor attention with a strong yield of 7.27%. It pays monthly dividends and is a favorite of passive income investors. The fund invests 80% of its assets in stocks and focuses on Nasdaq 100 stocks.
The remaining 20% is invested in equity-linked notes, which have a strategy of selling call options on the index and generating a premium from it. This allows the ETF to maintain a high yield. Investing in JEPI could boost your bottom line and ensure monthly dividends. Reinvestment of these dividends will continue portfolio growth.
The fund holds 124 stocks and includes top-tier businesses like Nvidia, Microsoft, and The Southern Company. It has an expense ratio of 0.35%, but its sizeable yield more than makes up for this ratio. It has the highest allocation in the information technology sector (15.5%), followed by financials (13.3%) and industrials (11.8%). The top 10 holdings are big tech names, including Amazon, Visa, and Meta Platforms.
Its NAV is $56.86 and is down 1.10% year-to-date. However, it is up 7.3% over a period of five years. Do not expect the ETF to show high capital growth; it promises strong monthly dividends. JEPI is a high-yield low-stress ETF that will generate steady income for years.
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