Monthly Income ETFs Perfect For Retirement
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JPMorgan Equity Premium Income (JEPI) delivers a 7.17% dividend yield and generated an 11% income yield over the past 12 months using an options writing strategy.
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Global X SuperDividend US (DIV) holds 50 equally weighted stocks with a 7.67% dividend yield, focusing on energy, real estate, and utilities rather than technology.
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Amplify CWP Enhanced Dividend Income (DIVO) combines dividend growth stocks with covered calls, generating a 4.86% yield and 13.52% annualized return over three years.
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Exchange-traded funds (ETFs) can be powerful investments for building your retirement funds. No matter when you start investing, there are ETFs that will serve your financial goals. The best ETFs have low costs, generate passive income, maximize long-term gains, and reduce risk. If you’re nearing retirement or already enjoying your retirement years, here’s why JPMorgan Equity Premium Income ETF (NYSEARCA:JEPI), Global X Super Dividend U.S. ETF (NYSEARCA: DIV), Amplify CWP Enhanced Dividend Income ETF (NYSEARCA:DIVO) are my top picks.
JP Morgan Equity Premium Income ETF
The JPMorgan Equity Premium Income ETF provides a monthly income stream for investors and an exposure to the top dividend stocks. The fund has a different strategy that delivers on its purpose. It uses fundamental research to build a portfolio of the top companies from the U.S. stock market and then writes out-of-the-money call options on the index. This allows it to generate premium income, which helps maintain the high dividend yield of 7.17%.
JEPI has become a popular ETF due to its options writing strategy, and it has generated an income yield of over 11% over the past 12 months. Its stock holdings provide an upside potential, boosting the overall return. The fund generated a cumulative return of 4.32% in a year, 44.26% in 3 years, and 65.65% in 5 years. That is a strong return for an income-focused investment fund.
JEPI has an expense ratio of 0.35% and holds 125 stocks. The fund has the highest allocation in the technology sector (15.5%), followed by industrials (12.2%) and healthcare (11.8%). Its top holdings include Nvidia, Alphabet, Microsoft, Johnson & Johnson, and AbbVie. The fund is exchanging hands for $56.39 and the NAV has remained flat in 2025.
Global X SuperDividend U.S. ETF
The Global X Super Dividend U.S. ETF holds only 50 stocks from a large pool of companies and ensures it invests in the best and the biggest. It invests in companies that have a minimum market cap of $500 million and has limited weightage on each sector. This means investors are left with a low-risk pool with a dividend as high as 7.67%. Its top holdings include Kinder Morgan, Philip Morris, AT&T, and Duke Energy.
DIV has the highest allocation in the energy sector (19.8%), followed by real estate (19.5%) and utilities (19.3%). The ETF is equally weighted, and every stock has a weightage close to 2%. The highest weightage is 3.04% in the Global Ship company. The fund has an expense ratio of 0.45% and has generated a cumulative 61.95% return since inception.
The ETF sets itself apart by investing in sectors like real estate and utilities, which have the potential to see growth in the coming years. It isn’t tech-focused like many other ETFs today.
DIV is a top choice for those looking for steady monthly income at low cost. It offers an opportunity to own the best dividend-paying companies in the U.S. at little risk.
Amplify CWP Enhanced Dividend Income ETF
The Amplify CWP Enhanced Dividend Income ETF offers a unique approach that blends top-quality dividend stocks with a covered call strategy that generates a high yield. DIVO pays monthly dividends and has a yield of 4.86%.
It invests in large-cap companies that have earnings and dividend growth. The fund holds about 30 stocks and has an expense ratio of 0.56%. Unlike passive ETFs, DIVO picks companies that have a solid history of dividend growth, and it generates additional income from option premiums like JEPI. The hybrid approach of picking dividend stocks and writing options calls allows managers to ensure a premium yield while ensuring capital appreciation.
The fund is heavily focused on financials (28.79%), followed by information technology (16.88%) and industrials (16.54%). Its NAV is up 10.23% year-to-date and 44% in five years. It has generated a 3-year annualized return of 13.52% and a 5-year annualized return of 14.41%. Its top 10 holdings include Visa Inc., Microsoft Corporation, American Express Company, and RTX Corporation. The fund is well balanced among the traditional 10 S&P 500 sectors, with managers regularly rebalancing the portfolio.
If you’re seeking steady income and growth potential, DIVO can be an ideal choice.
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