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

In an economic environment where monthly expenses—from mortgages and insurance to utility and grocery bills—are consistently due, a steady stream of passive income becomes invaluable. Unlike open-end mutual funds, ETFs trade on major exchanges like stocks, providing liquidity as they can be sold at any time during market hours. This combination of regular cash flow and flexibility makes monthly-pay ETFs particularly attractive for investors, especially those in or approaching retirement. The anticipated Federal Reserve rate cut is expected to provide a solid boost to these high-yield instruments, enhancing their appeal for the remainder of 2025 and into 2026.

The selection criteria for top-tier monthly income ETFs are rigorous. Ideal funds feature a high dividend yield paid monthly, trade at or near their net asset value (NAV), are managed by established financial institutions, and maintain a reasonable expense ratio. This disciplined approach ensures that investors are not sacrificing fund quality or efficiency for the sake of yield. The ability to generate dependable recurring monthly dividends from quality assets is a proven recipe for long-term financial success, helping investors cover essential costs while setting aside money for future needs.

JPMorgan dominates the actively managed ETF space with two standout funds. The JPMorgan Equity Premium Income ETF (JEPI), the world’s largest actively managed fund, has raised billions since its 2020 inception. It seeks returns by creating a portfolio of equities primarily from the S&P 500 Index and utilizing equity-linked notes (ELNs) to sell call options against the index. This strategy yields a substantial 8.38% dividend, paid monthly, with a net asset value of $57.14 and an expense ratio of 0.35%.

For investors with a higher risk tolerance and greater appetite for technology exposure, the JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) offers an even more attractive yield. This fund, which has gained nearly 15% since its launch, employs a similar strategy but focuses on securities within the Nasdaq-100 Index. By selling call options through ELNs, it achieves a remarkable 9.96% dividend yield, paid monthly, with the same 0.35% expense ratio as its sibling fund. Both JEPI and JEPQ represent sophisticated option-income strategies managed by top portfolio managers at JPMorgan.

Global X provides investors with targeted exposure across different asset classes through three distinct ETFs. The Global X U.S. Preferred ETF (PFFD) focuses on preferred stocks of top U.S. companies, investing at least 80% of its assets in domestic preferred securities. This approach generates a solid 6.40% monthly yield with a low expense ratio of 0.23% and a NAV of $19.43, offering a conservative income stream from senior equity securities.

Real estate investors can turn to the Global X SuperDividend REIT ETF (SRET), which targets the highest-yielding real estate investment trusts globally. With at least 80% of assets in REITs, this fund delivers an impressive 8.52% yield monthly, though it carries a higher expense ratio of 0.58%. For technology-focused income seekers, the Global X NASDAQ 100 Covered Call ETF (QYLD) employs a covered call strategy on the Nasdaq-100, resulting in a massive 11.14% monthly yield—the highest among the recommended funds—with a NAV of $16.68 and 0.60% expense ratio.

While yielding less than the other recommendations, the iShares National Muni Bond ETF (MUB) serves a specific and valuable purpose for tax-sensitive investors. This fund invests in municipal bonds whose interest is exempt from Federal income taxes and not subject to the alternative minimum tax. With a 3.17% monthly yield and an exceptionally low expense ratio of 0.05%—the most cost-efficient option in this selection—MUB provides ideal tax-free income for investors in higher tax brackets. Its $104.22 NAV reflects the stability and tax advantages of the municipal bond market.

The diversity of these six ETFs—spanning covered call strategies, preferred stocks, REITs, and municipal bonds—demonstrates how investors can build a comprehensive passive income portfolio tailored to their risk tolerance and tax situation. As Wall Street anticipates the Federal Reserve’s September rate decision, these monthly-pay ETFs represent compelling opportunities for investors seeking to generate reliable income in the evolving economic landscape of 2025-2026.