Why 6 Incredible Passive Income ETFs Are the Safest Way to Invest Now

April 3, 2025March 31, 2025 Editor

In 2025, many investors require dependable passive income, and one effective way to achieve this is to invest in exchange-traded funds (ETFs). Unlike open-end mutual funds, ETFs trade on major exchanges like stocks. They own financial assets, including stocks, bonds, currencies, debt, futures contracts, and commodities such as gold bars.

24/7 Wall St. Key Points:

The February core personal consumption expenditures price index rose more than expected.
The closely watched figure rose 0.4% for the month and put the 12-month inflation rate at 2.8%.
The Federal Reserve’s core inflation report does not include volatile food and energy components.

Many dividend investors seek solid passive income streams from quality exchange-traded dividend funds. Passive income is a steady stream of unearned income that does not require active traditional work. Shared ideas for earning passive income include investments such as dividend stocks, bonds, and mutual funds, as well as real estate and additional income-producing side hustles.

One significant advantage of owning ETFs is that they can be sold at any time when the markets are trading. We screened our 24/7 Wall St. ETF research database and found six top funds that have these qualities:

High dividend payout
Trades at or at a discount to net asset value
Are managed by major Wall Street firms
Reasonable expense ratio

Six top funds appear on our screens, making sense for investors seeking dependable distributions, some of which pay monthly versus quarterly. These funds are among the safest ways for investors to invest now to position themselves in a volatile and expensive stock market.

JPMorgan Equity Premium Income

This massive fund has raised billions since its inception in 2020 and is managed by top portfolio managers at JPMorgan. JPMorgan Equity Premium Income (NYSEArca: JEPI) seeks to achieve this objective by:

Creating an actively managed portfolio of equity securities comprised significantly of those included in the fund’s primary benchmark, the Standard & Poor’s 500 Total Return Index (S&P 500 Index) Utilizing equity-linked notes (ELNs), selling call options with exposure to the S&P 500 Index

Dividend yield = 7.15% paid monthly
NAV = $57.40
Expense ratio = 0.35%

Alerian Master Limited Partnership

AMLP

This is an excellent way for investors to gain energy exposure, as the Alerian Master Limited Partnership (NYSEArca: AMLP) fund typically invests at least 90% of its total assets in securities that comprise the underlying index. The underlying index includes energy infrastructure master limited partnerships (MLPs) that generate the majority of their cash flow from transporting, storing, and processing energy commodities.

Another huge plus is unlike individual MLP stocks, which send a K-1 for tax purposes and can be a hassle, this fund sends investors a 1099.

Dividend yield = 7.31% paid quarterly
NAV = $52
Expense ratio = 0.85%

Global X U.S. Preferred ETF

This fund focuses on preferred stocks of top U.S. companies. The Global X U.S. Preferred ETF (NYSEArca: PFFD) invests at least 80% of its assets in the securities of its underlying index. It supports at least 80% of its assets in preferred domestic securities, principally traded in or whose revenues are primarily from the U.S. The underlying index tracks the broad-based performance of the U.S. chosen securities market.

Dividend yield = 6.31% paid monthly
NAV = $19.26
Expense ratio = 0.23%

Global X SuperDividend REIT ETF

Similar to the MLP fund with energy, the Global X SuperDividend REIT ETF (NASDAQ: SRET) fund provides investors with exposure to real estate. At least 80% of its total assets are invested in the securities of the underlying index, and American depositary receipts (ADRs) and global depositary receipts (GDRs) are based on these securities. The underlying index tracks the performance of REITs that rank among the highest-yielding REITs globally.

Dividend yield = 8.26% paid monthly
NAV = $21.14
Expense ratio = 0.58%

iShares National Muni Bond ETF

While yielding much less, iShares National Muni Bond ETF (NYSEArca: MUB) is an ideal fund for investors seeking tax-free income. The underlying index includes municipal bonds, the interest of which is exempt from federal income taxes and not subject to the alternative minimum tax.

Dividend yield = 3% paid monthly
NAV = $104.62
Expense ratio = 0.05%

Vanguard High Dividend Yield Index Fund

This is a perfect income ETF for more conservative investors. The Vanguard High Dividend Yield Index Fund (NYSEArca: VYM) manager employs an indexing investment approach designed to track the index’s performance, consisting of common stocks of companies that generally pay higher-than-average dividends. The adviser attempts to replicate the target index by investing all, or substantially all, of the fund’s assets in the stocks that make up the index.

Dividend yield = 2.61% paid quarterly
NAV = $128.85
Expense ratio = 0.06%

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