Many investors in 2025 need dependable passive income, 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. The more passive income can help cover rising costs, such as mortgages, insurance, taxes, and other expenses, the easier it is for investors to set aside money for future needs as they prepare for or begin retirement. Dependable recurring monthly dividends from quality, high-yield ETFs are a recipe for success.
24/7 Wall St. Key Points:
Some on Wall Street expect the first federal funds cut at the September meeting.
High-yield monthly-pay ETFs and stocks should get a boost with a rate cut.
Passive income ETFs are one of the best ideas for the rest of 2025.
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One significant advantage of owning ETFs is that they can be sold at any time when the markets are trading. We screened our 24/7 Wall St. ETF research database and found five top funds that have these qualities:
High dividend monthly payout
Trades at a discount to net asset value
Major Wall Street firms manage them
Reasonable expense ratio
JPMorgan Equity Premium Income
This massive fund has raised billions since its inception in 2020 and is managed by top portfolio managers at JPMorgan. JPMorgan Equity Premium Income (NYSEArca: JEPI) 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
Dividend yield = 8% paid monthly
NAV = $56.03
Expense ratio = 0.35%
Global X U.S. Preferred ETF
This fund focuses on preferred stocks of top U.S. companies. It invests at least 80% of its assets in the securities of its underlying index. Global X U.S. Preferred ETF (NYSEArca: PFFD) supports at least 80% of its assets in preferred domestic securities, principally traded in or whose revenues are primarily from the United States. The underlying index tracks the broad-based performance of the U.S. chosen securities market.
Dividend yield = 6.62% paid monthly
NAV = $18.75
Expense Ratio = 0.23%
Global X SuperDividend REIT ETF
Global X SuperDividend REIT ETF (NASDAQ: SRET) offers investors exposure to the real estate sector. 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 = 8.66% paid monthly
NAV = $20.78
Expense ratio = 0.58%
iShares National Muni Bond ETF
While yielding much less, this is an ideal fund for investors seeking tax-free income. iShares National Muni Bond ETF (NYSEArca: MUB) 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 = 3.15% paid monthly
NAV = $103.51
Expense ratio = 0.05%
Global X NASDAQ 100 Covered Call ETF
With a massive dividend paid each month, Global X NASDAQ 100 Covered Call ETF (NASDAQ: QYLD) aims to deliver investment results that generally correspond to the price and yield performance of the CBOE NASDAQ-100 BuyWrite Index. The fund will invest at least 80% of its total assets in common stocks included in the Index. It employs a replication strategy to track the index.
Dividend Yield = 13.54% paid monthly
NAV = $16.59
Expense ratio = 0.60%
Five of the Safest Strong-Buy High-Yield Dividend Stocks Are On Sale Now
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