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2 Top ETFs I Can't Wait to Buy More of in My Retirement Account This September
The Motley Foolยท2025-08-31 15:25

Core Insights - The article discusses two ETFs, the Schwab U.S. Dividend Equity ETF and the JPMorgan NASDAQ Equity Premium Income ETF, highlighting their income generation and growth potential [2][10]. Group 1: Schwab U.S. Dividend Equity ETF - The Schwab U.S. Dividend Equity ETF tracks the Dow Jones U.S. Dividend 100 Index, focusing on 100 high-yielding dividend stocks with a strong history of dividend payments [4]. - The ETF's current holdings have an average dividend yield of nearly 4%, with companies increasing their dividends at an annual rate exceeding 8% over the past five years [5]. - Since its inception in 2011, the ETF has achieved an average annual total return of 11.5%, making it a solid lower-risk investment option [8]. Group 2: JPMorgan NASDAQ Equity Premium Income ETF - The JPMorgan NASDAQ Equity Premium Income ETF aims to provide monthly income and upside exposure to the Nasdaq-100 index while minimizing volatility [9]. - The fund has generated an income yield of over 11% in the past year through its options writing strategy, which helps to reduce market volatility [9]. - Since its inception in 2022, the ETF has delivered an average annual total return of 14.9%, indicating strong total return potential with lower risk [10]. Group 3: Investment Strategy - Both ETFs are positioned as effective ways to quickly deploy cash, with the Schwab ETF focusing on steady dividend income and the JPMorgan fund offering higher monthly income potential [11]. - The JPMorgan ETF employs a disciplined options strategy, writing out-of-the-money call options on the Nasdaq-100 index, which allows for upfront premium collection and monthly profit distribution to investors [11].