These 3 ETFs Can Get You $1,000 in Dividends Every Week

Most investors are aware of dividend exchange-traded funds that pay monthly. These are very popular, as they perfectly fit retirees who want a regular income source. The dividends also compound faster. Monthly ETFs are made for that demographic. But what if being paid monthly wasn’t enough? This article is just for you.

There exist ETFs that pay you every week. Better yet, they come with higher yields, though you would have to sacrifice on yield stability and safety. Still unbothered? Getting paid weekly can complicate your tax filing procedure, and if these ETFs involve options, the fees can be on the higher end.

For some people, the pros can outweigh all the cons due to the yield and the flexibility you get with these ETFs. If you are one of them, here are three weekly dividend ETFs to look into:

YieldMax Ultra Option Income Strategy ETF (ULTY)

I’d hold YieldMax Ultra Option Income Strategy ETF (NYSEARCA:ULTY) with caution. You’re going to get paid very generously while holding it, but only as long as the broader market keeps performing well. If the market corrects, the chart will look hideous very quickly. Thus, it is important that you have your finger on the market’s pulse if you have ULTY in your portfolio.

YieldMax Ultra Option Income Strategy ETF derives income by selling covered call options. This caps the upside significantly, but you get full exposure to the downside risk. The counterweight to that is the yield.

ULTY comes with a staggering 90.28% yield, as of this writing. Obviously, this is not sustainable in the long run, but it is worth it if the market keeps rising. A yield like that can offset your downside losses in a rising market.

If the market gets hit with a 2022-esque downturn, though, ULTY will have a hard time.

The net expense ratio is 1.30%, or $130 per $10,000 invested.

Defiance R2000 Enhanced Options & 0DTE Income ETF (IWMY)

Defiance R2000 Enhanced Options & 0DTE Income ETF generates income by selling naked puts that are at or already in the money on the Russell 2000 index. These puts are very short-dated and expire on the same day. Using this strategy, IWMY can generate income in a market that trades flat or when it is rising.

A sideways market is best for IWMY, as put options premiums are higher and expire worthless more often. This lets the fund keep the premium and distribute it as income. It also holds treasuries as collateral for the puts it writes. The biggest risk would be if the market were to crash suddenly. A sudden flash crash would be terrible for IWMY holders.

For those willing to take on that risk, you get a dividend yield of 51.51%. The expense ratio is 1.02% or $102 per $10,000. The yield has been high enough to deliver returns for those who bought even before the spring downturn this year. Surprisingly, IWMY wasn’t hurt too much by it, as the premiums on short-dated puts are significant on a declining market, and the market would have to crash considerably within a small window to dent it.

Roundhill Weekly T Bill ETF (WEEK)

Not all weekly dividend ETFs have to be chaotic. Roundhill Weekly T Bill ETF is great if you have a big portfolio that you’re unwilling to risk but still want to get paid weekly. WEEK invests in short-term U.S. Treasury bills with maturities between 0 and 3 months at the time of purchase. The fund aims to offer a stable net asset value (NAV) week-over-week and targets capital preservation while giving you a recurring weekly income stream.

The expense ratio here is also lower at just 0.19%, or $19 on $10,000 invested. The yield is 4.07%, which is close to the current short-term yields of 4.18% to 4.3%.

WEEK is unlikely to retain this yield in the coming months, as the Federal Reserve is expected to start cutting interest rates in September. An annualized yield closer to 3% is more realistic long-term.