Wall Street Loves These 6 Amazing Passive Income Dividend ETFs

By Lee Jackson Published Jan 13, 5:20PM EST

24/7 Wall Street Key Points:

The December rate cut may be the last until the spring or summer.
Inflation has stayed stubbornly high and above expectations.
Passive income ETFs make sense for 2025.
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Wall Street Loves These 6 Amazing Passive Income Dividend ETFs — © AlexLMX / iStock via Getty Images

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.

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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About the Author Lee Jackson →

Lee Jackson has covered Wall Street analysts' equity and debt research and equity strategy daily for 24/7 Wall St. since 2012. His broad and diverse career, which included a stint as the creative services director at the NBC affiliate in Austin, Texas, gives him unique insight into the financial industry and world.

Lee Jackson's journey in the financial industry spans over 30 years, with nearly two decades as an institutional equity salesperson at Bear Stearns, Lehman Brothers, and Morgan Stanley. His career was marked by his presence on the sell side during pivotal Wall Street events, from the dot.com rise and bubble to the Long Term Capital Management debacle, 9/11, and the Great Recession of 2008. This is a testament to his resilience and adaptability in the face of market volatility.

Lee Jackson’s practical financial industry experience, acquired from a career at some of the biggest banks and brokerage firms, is complemented by a lifetime of writing on various platforms. This unique combination allows him to shed light on the intricacies and workings of Wall Street in a way that only someone with deep insider experience and knowledge can. Moreover, his extensive network across Wall Street continues to provide direct access for him and 24/7 Wall St., a privilege few firms enjoy.

Since 2012, Jackson’s work for 24/7 Wall St. has been featured in Barron’s, Yahoo Finance, MarketWatch, Business Insider, TradingView, Real Money, The Street, Seeking Alpha, Benzinga, and other media outlets. He attended the prestigious Cranbrook Schools in Bloomfield Hills, Michigan, and has a degree in broadcasting from the Specs Howard School of Media Arts.