3 Dividend-Paying ETFs to Buy in July Even if the S&P 500 Sells Off

Core Insights - Investing in dividend-paying ETFs offers diversification and passive income regardless of market conditions [1] - The S&P 500 index is at an all-time high, up over 27% from its April low [1] Group 1: Dividend-Paying ETFs - The "V-Shaped" recovery may cause hesitation among investors, making diversified ETFs that generate passive income appealing [2] - Recommended ETFs include the Global X MLP ETF, Schwab US Dividend Equity ETF, and JP Morgan Nasdaq Equity Premium Income ETF [2] Group 2: Global X MLP ETF - This ETF focuses on midstream master limited partnerships (MLPs) that own natural gas pipelines and storage assets, offering a trailing-12-month distribution yield of 7.5% [4] - The ETF's performance shows little correlation with the S&P 500, providing a way to invest without increasing exposure to the index [5][7] - Natural gas is recognized for its crucial role in future energy provision, balancing the intermittency of renewable energy sources [8] Group 3: Schwab U.S. Dividend Equity ETF - The ETF has a 30-day SEC yield of 3.8% and a low total expense ratio of 0.06% [9] - With net assets over $71 billion, it primarily holds large-cap stocks, which are less volatile and provide more reliable dividends [10] - Major holdings include Texas Instruments and Chevron, both with market caps exceeding $195 billion [11][13] Group 4: JP Morgan Nasdaq Equity Premium Income ETF - Launched in May 2022, this ETF aims to generate income through selling covered call options [14] - The ETF has a 30-day SEC yield of 11.2% as of June 30, 2025, and has gained 61.4% over three years when factoring in dividend income [18] - The fund's expense ratio is 0.35%, which is higher than typical index funds, but it offers unique income-generating strategies [22]