2025-01-18 07:49:00 ET
Exchange-traded funds (ETFs) are great options for those seeking to generate passive income. Many of these funds hold a portfolio of income-generating investments. Because of that, you don't have to actively manage your portfolio . You can just sit back and watch the income flow into your brokerage account.
The Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) , JPMorgan Equity Premium Income ETF (NYSEMKT: JEPI) , and Vanguard Real Estate ETF (NYSEMKT: VNQ) are three great ETFs for generating passive income . They pay higher-yielding dividends that have grown over the years.
The Schwab U.S. Dividend Equity ETF tracks the Dow Jones U.S. Dividend 100 Index . This index aims to follow the performance of 100 top high-yielding stocks that consistently pay dividends and have stronger financial metrics than their peers.