Your 5% CD Is Gone and the Bank’s Renewal Offer Is Insulting. These 3 ETFs Keep Paying After the Fed Stops

Two years ago, your bank was practically begging for your money at 5%. Now the renewal notice lands with a thud: the national 12-month CD average sits at just 1.68%, down from a recent peak of 1.76% in August 2025. The recent Fed policy can be to blame. The central bank cut its target range down to 3.75% and has held it there since December 10, 2025. If you want your cash to keep working, three ETFs deserve a look: the JPMorgan Equity Premium Income ETF (NYSEARCA:JEPI), the Janus Henderson AAA CLO ETF (NYSEARCA:JAAA), and the Vanguard High Dividend Yield ETF (NYSEARCA:VYM).

Why Your Renewal Offer Feels Like an Insult

The math comes down to pure policy. Banks price CDs off the Fed funds rate, and the Fed cut three times last fall before pausing. Meanwhile, the 10-year Treasury is yielding 4.63%, which tells you the market still rewards investors who can accept a little duration or credit risk. The CD ladder that felt bulletproof in 2024 now looks less appealing.

JEPI: A Monthly Paycheck From Blue-Chip Stocks

JEPI blends a portfolio of large-cap U.S. stocks with a covered-call overlay, selling upside on the S&P 500 to convert equity volatility into cash. Its top holdings read like a defensive quality list: Broadcom at 1.8%, Ross Stores and Amazon at 1.7% each, alongside Apple, Alphabet, Nvidia, and AbbVie. Distributions arrive monthly, and over the trailing year JEPI has paid $4.58022 per share against a current price of $57.51. The expense ratio of 0.35% means you keep $996.50 of every $1,000 working for you. Total return has not been shabby either: the fund is up 11.46% over the past year. The catch: when stocks advance sharply higher, the call overlay caps your gains.

JAAA: Floating-Rate Income That Ignores the Stock Market

JAAA owns AAA-rated tranches of collateralized loan obligations, the safest slice of a floating-rate structure. Because coupons reset with short-term rates, price volatility is tiny and correlation to stocks is near zero. Top positions include OCP CLO Ltd at 1.04%, Octagon Investment Partners 51 at 1.01%, and KKR CLO 35 at 1.01%, spread across dozens of managers. The expense ratio is 0.20%. Distributions are monthly and reflect the environment: JAAA paid $2.487981 per share over the trailing 12 months, with the latest August payment at $0.199366. Payments have stepped down from 2024’s $0.25 to $0.28 range as the Fed cut, which is the trade-off with floating-rate paper. Total return has been steady, up 4.87% over the past year.

VYM: The Boring Compounder Doing the Heavy Lifting

If JEPI drives incomes and JAAA serves as the cash substitute, then VYM is the growth engine that also pays you. It tracks the FTSE High Dividend Yield Index, holds more than 400 U.S. dividend payers, and has assets under management of $94.6 billion. Top holdings include Broadcom at 8.03%, JPMorgan Chase at 3.34%, Exxon Mobil at 2.72%, and Johnson & Johnson at 2.30%. VYM pays quarterly, distributing $3.6303 per share over the trailing year at a current price of $165.01. The dividend has grown steadily, from around $0.23 per quarter in 2010 to roughly $0.98 most recently. Total return over the past year has been 26.05%, and over the past decade, 206.28%.

The Trade-Off

None of these three are CDs. Principal is not FDIC-insured, prices are not fixed, and JAAA’s payout will keep drifting lower if the Fed cuts rates again. Additionally, JEPI will lag in a raging bull market, and VYM can lose 15% to 20% in a bad quarter if stocks sell off. What you get in exchange is real income: a monthly equity-income stream from JEPI, a floating-rate cash proxy in JAAA, and a growing dividend compounder in VYM. Split your maturing CD across the three, and your income no longer depends on a branch manager finally getting generous.

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