The Global X SuperDividend ETF (NYSEARCA:SDIV) generates its 8% yield by investing in 100 of the highest dividend-yielding equities across global markets. ...

Joyseulay / Shutterstock.com If you’re looking to build a portfolio that generates steady income for you throughout 2026, you need to look beyond dividend stocks. While they can generate passive income, they also carry risks. On the other hand, exchange-traded funds (ETFs) offer a low-risk way of generating passive income. While the goal isn’t making big money, it is about having a predictable source of income that doesn’t disappoint during market ups and downs. Schwab US Dividend Equity ETF (NYSEARCA:SCH ...

Core Insights - Monthly-paying exchange-traded funds (ETFs) are gaining popularity among income investors due to their convenience and ability to compound faster compared to traditional quarterly dividend stocks [3][4] Group 1: High-Yield Monthly ETFs - The article highlights three high-yield monthly ETFs: JPMorgan Equity Premium Income ETF (JEPI), Invesco S&P 500 High Dividend Low Volatility ETF (SPHD), and Global X SuperDividend ETF (SDIV) [4][5] - These ETFs offer sustainable yields that can help investors stay ahead of inflation, which is currently at 3.1% [4] Group 2: JPMorgan Equity Premium Income ETF (JEPI) - JEPI is an actively managed fund that combines a defensive portfolio of U.S. large-cap stocks with a systematic options-selling strategy, aiming for lower volatility than the broader market [7] - The ETF has an 8.4% dividend yield and a low expense ratio of 0.35%, or $35 per $10,000 [9] Group 3: Invesco S&P 500 High Dividend Low Volatility ETF (SPHD) - SPHD targets the 75 highest-yielding stocks in the S&P 500 and selects the 50 with the lowest volatility, resulting in a yield of 3.65% and an expense ratio of 0.30%, or $30 per $10,000 [11] - This ETF is designed for investors seeking above-average income with reduced price volatility [10] Group 4: Global X SuperDividend ETF (SDIV) - SDIV focuses on maximizing cash flow by investing in the 100 highest-yielding dividend stocks globally, offering a yield of 10% and an expense ratio of 0.58%, or $58 per $10,000 [14] - The ETF's high yield comes with increased risk, as many holdings may be smaller or cyclical companies [15]

Core Viewpoint - High-yielding investments, such as the Global X SuperDividend ETF, may appear attractive due to their high dividend yields, but they come with significant risks and potential safety concerns regarding the sustainability of those dividends [2][10]. Group 1: ETF Overview - The Global X SuperDividend ETF offers a yield of 10%, significantly higher than the S&P 500 average of 1.2% [2]. - The ETF consists of 106 holdings, providing a degree of diversification, with 25% of stocks based in the U.S. and significant international exposure, including 16% from Hong Kong and 9% from Brazil [4]. - Many stocks within the ETF are not well-known, with Ithaca Energy being one of the largest positions, and recognizable names like Guess showing negative free cash flow over the past year [5]. Group 2: Performance and Risks - The ETF has experienced a 30% decline over the past five years, with total returns, including dividends, at just under 20%, compared to a 97% return from the S&P 500 over the same period [7][8]. - Concerns about dividend safety arise from the ETF's high exposure to international markets and tariffs, leading to skepticism about the reliability of its dividend income [6][9]. - Although the ETF has outperformed the S&P 500 this year with total returns of 24% versus 11%, long-term performance remains uncertain [9]. Group 3: Investment Strategy Recommendations - Investors are advised to be cautious with the SuperDividend ETF, as it appears to prioritize yield over quality and safety of the underlying stocks [10]. - A more prudent approach may involve focusing on safer index funds that provide dividends, even if it results in lower yields, as this strategy may offer better long-term stability [11].