Many individual stocks provide steady earnings for investors through dividend distributions. However, you can actually achieve higher yields and greater diversification with exchange traded funds (ETFs).
To help you earn paycheck-like income from your portfolio, I’ve identified three ETFs with impressive yields for you to try out. If you buy all three of these funds, you’ll achieve broad diversification and reliable earnings for years or even decades.
JEPI: A Small Price for Big Yield
One top-yield dividend pick is the JPMorgan Equity Premium Income ETF (NYSEARCA:JEPI), a fund that’s well-known among dividend ETF enthusiasts. After you discover the benefits of JEPI, you’ll surely agree that it’s a worthy portfolio pick.
The JPMorgan Equity Premium Income ETF doesn’t only rely on the dividend payments of individual stocks. Instead, the fund writes/sells call options to derive extra income that’s paid to the shareholders on a monthly basis.
The JEPI ETF’s 125 holdings span multiple market sectors, from financials to industrials, utilities, and technology. Some of the stocks included in the JPMorgan Equity Premium Income ETF are Mastercard (NYSE:MA | MA Price Prediction), Trane Technologies (NYSE:TT), Southern Company (NYSE:SO), and Oracle (NYSE:ORCL).
These are premier companies that pay decent dividends, but the JPMorgan Equity Premium Income ETF unlocks a higher yield than you would get from individual stock picking. In fact, the JEPI ETF currently features a 12-month rolling dividend yield of 8.38%.
Not only that, but this fund keeps its operating fees low as it only deducts an annual expense ratio of 0.35%. This means you’ll get big yield and multi-market diversification while only paying $0.35 for every $100 invested in the JPMorgan Equity Premium Income ETF.
Already, you can probably figure out what I look for in a top-yield ETF for steady income. The JPMorgan Equity Premium Income ETF checks all of the most important boxes, so now let’s pick out a couple of other reliable funds for dividend collectors.
RSPA: Equal Weightings, Enhanced Diversification
The JEPI ETF will already provide you with good diversification, but you can take it to the next level with the Invesco S&P 500 Equal Weight Income Advantage ETF (NYSEARCA:RSPA). This fund is centered around the S&P 500 index, but it’s even more diversified than the index itself as the RSPA ETF includes a mind-blowing 525 holdings.
If you browse through the fund’s lengthy list of holdings, you’ll discover many reliable dividend payers, such as Coca-Cola (NYSE:KO), JPMorgan Chase (NYSE:JPM), Consolidated Edison (NYSE:ED), and Johnson & Johnson (NYSE:JNJ). Furthermore, you’ll notice that the Invesco S&P 500 Equal Weight Income Advantage ETF assigns a small and roughly equal weighting to each of the 500+ stocks in its portfolio.
Consequently, the RSPA ETF is extremely well-diversified and isn’t lopsided toward any particular stock or market sector. Plus, you’ll get access to hundreds of stocks for an ultra-low price as the Invesco S&P 500 Equal Weight Income Advantage ETF only deducts an annual expense ratio of 0.29%.
Of course, you probably want to know how much the Invesco S&P 500 Equal Weight Income Advantage ETF will pay you in dividends. On that topic, you’ll be glad to know that the RSPA ETF currently has a 12-month distribution rate (i.e., historical annual yield) of 9.48% and the payouts occur once per month.
That yield is subject to change in the future, but the Invesco S&P 500 Equal Weight Income Advantage ETF has a solid track record of paying consistent distributions. Therefore, I believe you won’t be disappointed if you hold the RSPA ETF for steady long-term earnings.
QQQI: Superior Yield With Tech Exposure
Maybe you’re interested in adding some extra technology-sector exposure to your portfolio. If so, and if you really want to accelerate your passive income in 2025, then consider the NEOS NASDAQ-100 High Income ETF (NASDAQ:QQQI).
Based on the NASDAQ 100 index and featuring monthly payouts, the NEOS NASDAQ-100 High Income ETF squeezes extra income from a variety of established technology-sector stocks. These include NVIDIA (NASDAQ:NVDA), Apple (NASDAQ:AAPL), Meta Platforms (NASDAQ:META), Amazon (NASDAQ:AMZN), and Broadcom (NASDAQ:AVGO).
Altogether, the QQQI ETF includes around 100 stocks in its holdings list. Sure, you could try to invest in all of these stocks by yourself. Yet, this would be time-consuming and you probably wouldn’t achieve the impressive overall yield that the NEOS NASDAQ-100 High Income ETF offers.
Believe it or not, the QQQI ETF currently advertises a 14.56% annual distribution rate. That’s hard to resist, especially if you’re in the market for blue-chip tech stocks.
Granted, the NEOS NASDAQ-100 High Income ETF deducts an annual expense ratio of 0.68%, which is higher than the other funds I’ve mentioned today. Still, this is a reasonable price to pay for QQQI’s amazing annual yield.
For a fully balanced mix of stocks and strategies, you could buy a few shares of JEPI, RSPA, and QQQI. Then, you’ll be set up for maximum diversification, great yield, and steady income all year long.
Top Gaining Stocks
Top Losing Stocks