5 ETFs To Buy And Hold For Decades of Passive Income

Generating passive income is a way to make your money work for you, with little effort. If you manage to choose the right investments, money will simply flow into your account from time to time. There are different sources of passive income, and one of the most popular today is an exchange-traded fund (ETF). You can invest in dividend-paying stocks but you’ll have to research and keep them on your radar. If there’s market uncertainty, your investment may lose value. 

This is where ETFs make a difference. They’re low-cost, can be bought and sold like stocks, and invest in a basket of stocks, reducing risk and volatility. ETFs also pay dividends like stocks and can generate steady passive income for you. If you’re ready to diversify your portfolio and invest in dividend ETFs, here are the ETFs to buy and hold for decades of passive income. 

SPDR Portfolio S&P 500 High Dividend ETF

The SPDR Portfolio S&P 500 High Dividend ETF (NYSEARCA: SPYD) tracks the S&P 500 High Dividend Index and aims to generate passive income and capital appreciation. SPYD holds the top 80 dividend-paying stocks in the S&P 500 and has a dividend yield of 4.63%. The ETF has an expense ratio of 0.07% annually, meaning you’ll pay $7 for every $10,000 you invest in the fund. 

The fund is inclined towards midcap companies and picks value stocks over growth stocks. About 22% of the assets are in real estate, followed by 17% in consumer staples companies, 15% in financials, and 13% in utilities. 

Some of the top stocks include AbbVie, CVS Health Corporation, Altria Group, and HP Inc. No stock has a weightage higher than 2%, and the ETF pays quarterly dividends. 

In 2025, SPYD’s NAV is up 4.22% and has remained flat in 12 months. However, it is up 58% over five years. 

Schwab U.S. Dividend Equity ETF

The Schwab US Dividend Equity ETF (NYSEARCA:SCHD) tracks the performance of the Dow Jones U.S. Dividend 100 index. It holds 103 stocks, which are some of the biggest dividend-paying companies in the country, including Chevron, Texas Instruments, Cisco Systems, and Merck. 

The fund has a compound annual growth rate of 14% and a dividend yield of 3.85%. Dividend reinvestment can help multiply your returns. SCHD has an annualized return of 11.77% over five years and 12.30% over the decade. The ETF has an expense ratio of 0.06%, and the shares are up 1.6% year-to-date and 49% in five years.

Its highest allocation lies in the energy sector (19.23%), followed by consumer staples (18.81%), healthcare (15.53%), and industrials (12.50%). The fund pays quarterly dividends and wouldn’t disappoint investors. Since the fund isn’t heavily tech focused, there’s low volatility, and it is rebalanced each quarter, meaning you always get to own the best dividend stocks in the market. 

Fidelity High Dividend ETF

An interesting high-yield ETF by Fidelity, the Fidelity High Dividend ETF (NYSEARCA: FDVV) has a yield of 3.04% and has a diversified mix of the top industries. It invests 26.03% in technology, 19.08% in financial services, 12.60% in consumer defense and 11.27% in real estate. The fund has 123 stocks, and the top 10 make up 33% of the total fund. 

Its top 10 holdings are a mix of growth and value companies such as Nvidia, Broadcom, Coca-Cola, and Visa. It also has some of the top financial institutions and oil and gas companies, which have reported strong yields. 

It reflects the performance of large and mid cap dividend-paying companies. FDVV only invests in the companies that are expected to pay and grow their dividends. 

It has gained 11.22% year-to-date and 96% in five years. With an expense ratio of 0.16% and an impressive dividend yield, the ETF is a top choice of income investors. 

iShares Core High Dividend ETF

The iShares Core High Dividend ETF (NYSE:HDV) tracks the performance of the top dividend-paying U.S. equities. It invests in 75 stocks that have shown strong financial strength and has a yield of 3.31%. 

The ETF has generated a total return of 11.57% in a year and 30.87% in three years. HDV has the highest allocation in healthcare (23.39%) and energy (21.78%), followed by consumer staples (18.73%) and utilities (8.83%). Its top 10 holdings include some of the biggest dividend-paying companies such as Coca-Cola, Chevron Corporation, PepsiCo, Home Depot, and Johnson & Johnson. 

HDV has an expense ratio of 0.08% and offers ultimate diversification. Its holdings include Dividend Aristocrats that have the ability to sustain and grow dividends. 

The share is up 9.77% year-to-date and 50% in five years. HDV pays quarterly dividends and is managed by the experienced professionals at BlackRock Investments. 

Global X SuperDividend U.S. ETF

The Global X SuperDividend ETF (NYSEARCA:SDIV) tracks the Solactive Global SuperDividend Index and holds 100 of the highest-yielding stocks across the world. The ETF offers ultimate diversification by investing in global companies spanning the U.S., Asia, Europe, South Africa, Australia, and Brazil. 

SDIV has a yield of 8.8% and an expense ratio of 0.58%. The ETF makes monthly distributions and has declared a dividend for 14 consecutive years. Through geographic diversification, it spreads risks across different sectors, economies, and companies, thus reducing volatility. 

Its highest allocation lies in the financial sector (30.7%), followed by energy (23.9%), real estate (12.9%), and materials (11%). The fund’s NAV is $23.94, up 15% year-to-date and closer to the 52-week high of $24.19. 

It has generated an annualized return of 13.27% in one year and 4.83% in three years. If you can tolerate moderate risk and are looking for monthly income, SDIV is a solid option.