3 Top ETFs Yielding 3% or More to Buy and Hold for Passive Income

Core Viewpoint - ETFs are highlighted as effective tools for generating passive income through diversified portfolios of stocks and bonds, with specific focus on three dividend-focused ETFs: Schwab U.S. Dividend Equity ETF, Vanguard Total Bond Market ETF, and JPMorgan Equity Premium Income ETF [1]. Group 1: Schwab U.S. Dividend Equity ETF - The Schwab U.S. Dividend Equity ETF (SCHD) tracks the Dow Jones U.S. Dividend 100 Index, focusing on high-yielding stocks with a consistent dividend payment history [2]. - The ETF has a trailing 12-month dividend yield of 3.8%, meaning a $10,000 investment would yield approximately $380 annually [3]. - It boasts a low expense ratio of 0.06%, allowing investors to retain more of the income generated [3]. Group 2: Vanguard Total Bond Market ETF - The Vanguard Total Bond Market ETF (BND) provides broad exposure to high-quality bonds, holding over 11,400 bonds from government and corporate issuers [6]. - The fund offers monthly income distributions with an average yield to maturity of 4.3% and an average effective maturity of eight years, ensuring steady income [7]. - It features an ultra-low expense ratio of 0.03%, making it suitable for low-risk, fixed-income investment [7]. Group 3: JPMorgan Equity Premium Income ETF - The JPMorgan Equity Premium Income ETF (JEPI) aims to provide monthly income with less volatility through a defensive equity portfolio and a disciplined options overlay strategy [8]. - The fund has delivered an income yield exceeding 8% over the past year, with monthly distributions fluctuating based on options income [9]. - Since its inception in 2020, JEPI has achieved an average annual total return of 11.6% and charges a 0.35% expense ratio [10].