6 High-Yield Monthly Pay ETFs for Passive Income in 2025

In an environment where investors need dependable passive income to cover rising costs like mortgages, insurance, and taxes, exchange-traded funds (ETFs) present a strategic solution. Unlike traditional mutual funds, ETFs trade on major exchanges like stocks and can be sold anytime markets are trading, offering unparalleled liquidity. The current market conditions—with stocks at all-time highs and the Federal Reserve likely to lower the federal funds rate—create a strong tailwind for high-yield investments through 2026.

High-yielding monthly pay ETFs serve as a perfect complement to traditional retirement income sources, providing recurring monthly dividends that help investors set aside money for future needs. These funds own diverse financial assets including stocks, bonds, currencies, debt, futures contracts, and commodities like gold bars, offering built-in diversification. For those building passive income streams, pairing these ultra-high-yield monthly pay ETFs with more conservative blue-chip dividend stocks creates a barbell approach that can generate substantial income while managing risk.

JPMorgan has pioneered two of the most popular monthly dividend ETFs in the market. The JPMorgan Equity Premium Income ETF (JEPI), with over $56.83 net asset value and a 0.35% expense ratio, delivers an impressive 8.42% dividend yield paid monthly. This massive fund, which has raised billions since its 2020 inception, achieves its objective through an actively managed portfolio of S&P 500 Index equities combined with equity-linked notes and selling call options with exposure to the S&P 500 Index.

For investors seeking higher technology exposure and greater yield potential, the JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) offers an 11.13% monthly dividend yield with a $57.28 NAV and identical 0.35% expense ratio. This non-diversified fund has gained nearly 15% since inception while providing substantial monthly income through its actively managed portfolio of Nasdaq-100 Index securities and equity-linked notes strategy. Both JPMorgan funds represent sophisticated options income strategies managed by top portfolio managers at one of Wall Street’s premier firms.

Global X offers three distinct monthly dividend ETFs targeting different market segments. The Global X U.S. Preferred ETF (PFFD) focuses on preferred stocks of top U.S. companies, delivering a 6.33% monthly yield with a low 0.23% expense ratio and $19.52 NAV. The fund invests at least 80% of its assets in preferred domestic securities, providing exposure to the broad-based performance of the U.S. preferred securities market.

Real estate investors can access the Global X SuperDividend REIT ETF (SRET), which targets the highest-yielding REITs globally with an 8.20% monthly dividend yield, $21.76 NAV, and 0.58% expense ratio. For technology-focused income seekers, the Global X NASDAQ 100 Covered Call ETF (QYLD) stands out with its massive 11.14% monthly yield, employing a covered call strategy that corresponds to the CBOE NASDAQ-100 BuyWrite Index. With a $17.05 NAV and 0.60% expense ratio, QYLD invests at least 80% of its assets in Nasdaq-100 common stocks while using option premiums to enhance income generation.

For investors in higher tax brackets or those seeking conservative income streams, the iShares National Muni Bond ETF (MUB) provides tax-free monthly income with a 3.13% yield. With an ultra-low 0.05% expense ratio and $106.15 NAV, this fund includes municipal bonds whose interest is exempt from federal income taxes and not subject to the alternative minimum tax. While yielding less than equity-focused ETFs, MUB offers crucial tax advantages for income-focused investors.

All six featured ETFs share key qualities that make them attractive for long-term income investors: high monthly dividend payouts, trading at discounts to net asset value, management by major Wall Street firms, and reasonable expense ratios. These characteristics, combined with the flexibility of ETF trading and the potential for interest rate tailwinds, position these funds as compelling holdings for investors building decade-long passive income strategies to support their retirement goals.