JEPQ - 2 High-Yield Dividend ETFs to Buy to Generate Passive Income
2024-05-27 04:35:00 ET
Exchange-traded funds (ETFs) make it super easy to be a passive investor. They offer instant, built-in diversification, meaning you don't need to actively construct and manage a portfolio .
These characteristics make ETFs ideal for those seeking to generate passive income . Two great dividend ETFs for passive income are JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ: JEPQ) and Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) . The ETFs offer high-yielding dividends, making them ideal for passive income production.
JPMorgan Nasdaq Equity Premium Income ETF aims to provide investors with a monthly income stream and equity upside exposure to the Nasdaq-100 with less volatility . The ETF primarily generates income by writing out-of-the-money call options on the Nasdaq-100. Selling call options generates options premium income, which the fund distributes to investors each month.
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2 High-Yield Dividend ETFs to Buy to Generate Passive Income