We are nearing the end of 2025, and while it may not have been the best year for investors, it hasn’t been the worst either. 2025 was all about tariffs, uncertainty surrounding the economy, government shutdown, challenges in the job market, and global economy concerns. Amidst all this, investors who held on to income stocks remained safe and continued to make money.
Everyone is not looking for growth stocks and to chase the next big company. Those concerned about generating passive income are now focusing on exchange-traded funds (ETFs), and there are several dividend ETFs that can generate passive income for years. The Schwab International Dividend Equity ETF (NYSEARCA:SCHY), JPMorgan Equity Premium Income ETF (NYSEARCA:JEPI) and Global X SuperDividend ETF (NYSEARCA:SDIV) are great options to end 2025 and enjoy passive income throughout the next few years. Here’s why.
The Schwab International Dividend Equity ETF
The Schwab International Dividend Equity ETF offers international diversification with above-average payouts. The ETF tracks the total return of an index composed of the high dividend-yielding stocks. It screens non-U.S. based companies and invests in only those companies that have a record of paying dividends for at least 10 consecutive years.
SCHY aims to provide global diversification at low cost and low volatility. The fund has a yield of 4% and an expense ratio of 0.08%. It holds 133 stocks and has the highest allocation in the financial sector (15.04%), followed by consumer staples (14.52%) and industrials (13.55%). Geographically, it has the highest allocation in stocks in the United Kingdom (15.63%), followed by Australia (12.52%) and France (11.41%).
To maintain a high yield, the fund invests in stocks that have shown strength and resilience despite market ups and downs. Its top 10 holdings include Glaxosmithkline, TotalEnergies, British American Tobacco, and Unilever Plc. No stock in the fund has a weightage higher than 5%.
SCHY has generated a cumulative 1-year return of 19.67% and a 3-year return of 15.65%. The fund is up 24.62% in 2025 and is exchanging hands for $29.34. The ETF can ensure steady passive income while offering capital appreciation, making it an ideal pick for 2026.
JPMorgan Equity Premium Income ETF
The JPMorgan Equity Premium Income ETF aims to deliver monthly income with equity market exposure at less volatility. It builds a defensive portfolio that identifies stocks based on the risk-adjusted stock rankings. JEPI has a two-step strategy that has worked wonders for investors. It builds a strong portfolio of top stocks and then writes out-of-the-money call options on the S&P 500 index. These call options generate a premium, which allows the fund managers to maintain a high yield.
It has a juicy yield of 7.24% and an expense ratio of 0.35%. While it holds several high-dividend stocks, it generates a large part of the passive income through the premium on options calls. The fund has the highest allocation in the information technology industry (14.9%), followed by healthcare (12.4%) and industrials (11.8%). JEPI holds 123 stocks and has generated a cumulative 3-year return of 34.30% and a 5-year return of 67.96%.
It holds the biggest tech giants that are ruling the tech industry currently. These include the Magnificent Seven, such as Alphabet, Microsoft, Nvidia, and Amazon. It also holds dividend stocks like AbbVie and Johnson & Johnson. The fund ensures steady passive income and pays monthly dividends, making it a top choice for retirees.
Global X SuperDividend U.S. ETF
The Global X SuperDividend ETF is another fund that offers optimal diversification by investing in stocks worldwide. It is built for increasing your passive income and invests in the 50 highest-yielding stocks in the world. The fund pays monthly dividends and has a yield of 7.67%. It has an expense ratio of 0.45%, which means you pay $45 per $10,000.
The fund invests in smaller companies, which often see ups and downs over time. However, it has managed to maintain the yield. SDIV carries a certain level of volatility but keeps the checks intact. It has generated an average annualized 5-year return of 10.03% and a 10-year return of 3.73%.
The ETF has the highest allocation in the energy industry (21.7%), followed by utilities (20.7%), and real estate investment trusts (REITs) (17.6%). No stock has a weightage higher than 4%, and the top 10 holdings include Global Ship, Omega Healthcare, Spire Inc., Dominion Energy, and Northwestern Energy Group.
SDIV has made monthly distributions for 12 consecutive years. It has gained 14.62% in 2025 and is exchanging hands for $24.10. The fund offers ultimate diversification and an opportunity to own the best dividend-paying stocks in the world.
Top Gaining Stocks
Top Losing Stocks