5 Forever ETFs for Portfolio Protection & Passive Income

The Vanguard Real Estate ETF (VNQ) presents investors with a compelling opportunity in the commercial real estate sector, which is showing clear signs of recovery according to Deloitte’s 2025 Commercial Real Estate Outlook. With an expense ratio of just 0.13% and a yield of approximately 3.7%, this ETF offers exposure to 155 carefully selected real estate investment trusts, including industry leaders like Welltower, Prologis, American Tower Corp., Equinix, Digital Realty Trust, and Simon Property Group.

The fund’s recent performance underscores its recovery trajectory, having climbed from approximately $76 in April to $92.81 currently, with analysts targeting a move toward $96 per share. Investors have been rewarded with consistent quarterly dividends, including payments of just over 93 cents on March 27 and approximately 86 cents on June 30. This combination of capital appreciation potential and reliable income makes VNQ particularly attractive for long-term investors seeking exposure to what some analysts are calling a ‘generational opportunity’ in commercial real estate.

For investors prioritizing dividend reliability above all else, the ProShares S&P 500 Dividend Aristocrats ETF (NOBL) provides access to 69 companies that have not only paid dividends for more than 25 consecutive years but have also increased them during that period. This elite group includes household names like AbbVie, Lowe’s, Archer Daniels Midland, and Pentair, representing some of the most financially stable companies on the planet. With a 2.54% yield and 0.35% expense ratio, NOBL offers peace of mind during market turbulence.

The Schwab US Dividend Equity ETF (SCHD) takes a broader approach, tracking the Dow Jones U.S. Dividend Index with an exceptionally low 0.06% expense ratio and an attractive 3.93% yield. The fund’s 103 holdings include blue-chip dividend payers such as Amgen, AbbVie, Home Depot, Cisco Systems, Broadcom, Chevron, UPS, and Coca-Cola. SCHD has demonstrated strong recovery momentum, rising from around $23.75 in April to $27.50 currently, with a near-term target of $28.75. Both funds have maintained their dividend distributions, with NOBL paying approximately 46 cents on April 1 and 55 cents on July 1, while SCHD distributed just over 24 cents on March 31 and 26 cents on June 30.

For investors seeking maximum income generation, the Invesco KBW Premium Yield Equity REIT ETF (KBWY) and Global X Super Dividend U.S. ETF (DIV) offer yields of 7.84% and 7.32% respectively. KBWY focuses specifically on small and mid-cap equity REITs, investing at least 90% of its assets in U.S.-traded REITs with respectable yields. The fund’s top holdings include Global Net Lease (GNL), Service Properties Trust (SVC), Global Medical REIT (GMRE), Gladstone Commercial (GOOD), EPR Properties (EPR), and Omega Healthcare (OHI).

The Global X DIV ETF takes a different approach, concentrating on the highest dividend-yielding stocks in the U.S. market, with prominent holdings including Spire (SR), Kinder Morgan (KMI), Omega Healthcare (OHI), Philip Morris (PM), Duke Energy (DUK), AT&T (T), and Dominion Energy (D). Both funds have shown impressive technical strength, with KBWY recovering from a pullback to $13.50 to reach $16.34, targeting $19 per share, while DIV has rallied from approximately $15.80 in April to $17.96, with a near-term target of $20. Their consistent dividend payments—KBWY paying just over 12 cents in both July and August, and DIV distributing 11 cents in July and just over 10 cents in August—demonstrate their income-generating capabilities.

These five ETFs collectively represent a comprehensive approach to income investing, each serving a distinct purpose within a diversified portfolio. The combination of VNQ’s real estate exposure, NOBL’s dividend aristocrat reliability, SCHD’s broad market coverage, and the high-yield potential of KBWY and DIV creates a balanced strategy for generating passive income while managing risk. The recent price appreciation across all five funds from their April lows suggests growing investor confidence in income-generating assets.

What makes these ETFs particularly compelling for long-term investors is their ability to provide consistent quarterly distributions while offering exposure to different market segments. From the commercial real estate recovery story in VNQ to the unparalleled dividend reliability in NOBL, and the substantial yield opportunities in KBWY and DIV, investors can tailor their exposure based on individual risk tolerance and income requirements. The low expense ratios across these funds, particularly in the Vanguard and Schwab offerings, ensure that more of the generated income flows directly to investors rather than being consumed by management fees.