Monthly dividend ETFs investors should load up on

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The world of exchange-traded funds (ETFs) is vast and ever-expanding. With so many options to choose from, it can become overwhelming to choose the right fund. However, if you want to get diversified exposure at a low cost, there is a lot to consider. But if you’re looking for a monthly check from your investments, JPMorgan Equity Premium Income ETF (NYSEARCA:JEPI), Invesco S&P 500 High Dividend Low Volatility ETF (NYSEARCA:SPHD) and Global X SuperDividend ETF (NYSEARCA:SDIV) worth considering. This is why they can be an ideal choice for retired and income-focused investors.

The JPMorgan Equity Premium Income ETF ( JEPI ) returns 8.25% through a strategy that combines fundamental stock selection with S&P 500 call options.
JEPI maintains high yield by selling out-of-the-money call options on the S&P 500 through equity-linked notes.
The Invesco S&P 500 High Dividend Low Volatility ETF (SPHD) yields 3.65% and avoids tech stocks entirely.
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The JPMorgan Equity Premium Income ETF is managed by JPMorgan’s professional and experienced managers. It is one of the many monthly dividend ETFs with a juicy 8.25% yield. It is an actively managed fund that uses a two-step strategy. It invests in stocks using a bottom-up fundamental research process and ranks stocks based on volatility, risk/return profile and value.

The fund manager identifies top stocks and invests in them. For the second part of the strategy, he uses an option overlay to sell out-of-the-money call options on the S&P 500. The premium generated by the call options allows JEPI to maintain a high yield.

Instead of writing call options directly, the fund manager buys equity-linked notes that provide exposure to a profit from these options. It has the largest allocation to information technology (15.8%), healthcare (12.3%) and industry (11.7%). Its top 10 stocks include Alphabet, Johnson & Johnson, AbbVie, Amazon, Apple and Microsoft. JEPI has the right mix of growth and income stocks.

JEPI pays monthly dividends and recently announced a dividend of $0.370. The ETF has an expense ratio of 0.35%, meaning you pay $35 for a $10,000 investment.

Various types of financial products and bond market investments. i.e. REITs, ETFs, bonds, stocks. Sustainable portfolio management, long-term wealth management with risk diversification concept. — Andrew Angelov / Shutterstock.com

The Invesco S&P 500 High Dividend Low Volatility ETF has a yield of 3.65%. Although lower than the JEPI yield, it provides a low volatility option to ride the market. It identifies the top dividend paying companies and chooses the ones with low volatility. The fund picks the top 75 stocks with the highest return and then keeps 50 that have shown the lowest volatility over the past year. This fund offers high quality stocks with low risk.

That said, it has a cap of 25% in each sector and 10 stocks for each, ensuring a well-balanced portfolio. The fund has an expense ratio of 0.30% or $30 per $10,000 invested. Compared to technology-focused funds, SPHD stands out by investing in real estate (22.71%), consumer goods (17.04%) and utilities (14.73%). The fund does not invest in the technology sector. The strong tilt toward utilities and real estate could benefit ETFs over the long term.

Its top 10 holdings include Pfizer, Healthpeak Properties, United Parcel Service and Verizon. SPHD pays a monthly dividend and recently announced a dividend of $0.19. It generated a 3-year return of 7.62% and a 5-year return of 12.15%. Trading below $50, the ETF is too cheap to ignore.

The Global X SuperDividend ETF is a super fund created for passive income. It picks the 100 stocks with the highest return and weights them equally. The fund offers the opportunity to own the best stocks in the world. It has a yield of 8% and an expense ratio of 0.58%, which is $58 for a $10,000 investment. Its annual dividend for 2024 was $2.33.

SDIV invests in 118 stocks worldwide and makes the largest allocation to the United States (26.3%), followed by Brazil (15.4%) and Hong Kong (12%). In terms of industry allocation, it has the largest share in the energy sector (23.3%), followed by financial services (22.7%) and materials (12.3%). It recently announced a monthly dividend of $0.19 and has outperformed the S&P 500 this year.

The fund has several smaller companies that often experience ups and downs over time. However, the ETF maintained a steady return. SDIV is a combination of high risk and high reward. If you can handle a little volatility, this ETF will not disappoint. Besides the obvious advantage of a monthly salary, SDIV also offers an opportunity to own the best dividend stocks in the world. Ultimate diversification at low cost and low risk.

You might think that retirement is all about picking the best stocks or ETFs, but you’d be wrong. Even large investments can be a liability in retirement. It’s a simple difference between accumulation and distribution, and it makes all the difference.

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