Core Insights - Retirement planning is rapidly evolving due to concerns over Social Security shortfalls and rising healthcare costs, necessitating immediate attention to income potential for those nearing retirement [2] - Traditional retirement strategies focusing on bonds, stocks, drawdowns, and cash reserves are becoming outdated, as cash loses purchasing power and bonds offer lower yields [4][5] Investment Strategies - The new approach to retirement income blends income generation with long-term market participation, utilizing ETFs that provide structured monthly payments while allowing for portfolio growth [6] - The JPMorgan Equity Premium Income ETF (JEPI) is highlighted for its reliability, focusing on high-quality US stocks and enhancing monthly income through options, yielding 8.38% with a year-to-date return of 5.83% in 2025 [7][8] - The Vanguard Total Stock Market ETF (VTI) offers a lower yield of 1.16% but has delivered a total return of 15.26% in 2025, indicating a potential for growth despite lower immediate income [8]

Image Source / DigitalVision via Getty Images Quick Read Vanguard Dividend Appreciation (VIG) has delivered a 12.83% average annual return over the past decade with a 1.59% yield. Vanguard High Dividend Yield (VYM) holds 566 stocks and offers a 2.47% yield with lower tech concentration than most funds. JPMorgan Equity Premium Income (JEPI) uses covered call options to generate a 7.24% dividend yield with monthly distributions. If you’re thinking about retiring or know someone who is, there are thr ...

Investing JEPI, SPHD & SDIV: 3 High-Yield ETFs Paying Monthly Income ByOmor Ibne Ehsan Oct 19, 2025 9:05 am This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them. Skip to content S&P 500 6,680.20 +0.80% Dow Jones 46,272.50 +0.68% Nasdaq 100 24,895.90 +1.00% Russell 2000 2,458.60 -0.33% FTSE 100 9,382.40 +0.09% Nikkei 225 48,375.50 +0.59% Home >Investing >JEPI, SPHD & SDIV: 3 High-Yield ETFs Paying Monthly Income How to A ...

Group 1 - The focus is on growth and dividend income, with a strategy aimed at creating a portfolio that emphasizes compounding dividend income and growth [1] - The portfolio is structured to provide monthly dividend income that increases through dividend reinvestment and annual raises [1] Group 2 - The article expresses personal opinions and is not intended as a recommendation for stock purchases or sales [2] - It emphasizes the importance of conducting individual research before making investment decisions [2]

Core Insights - The article discusses the increasing interest in exchange-traded funds (ETFs) as a means to invest broadly across specific asset classes or themes [1][2] Group 1: ETFs Overview - The Schwab U.S. Dividend Equity ETF focuses on 100 top dividend stocks selected for their strong dividend growth track records, aiming to hold companies with robust financial profiles [5][6] - The JPMorgan Equity Premium Income ETF aims to provide a monthly income stream while offering equity market exposure with reduced volatility through a defensive equity portfolio and an options overlay strategy [7][9] - The iShares Core U.S. Aggregate Bond ETF offers broad exposure to high-quality bonds, complementing the equity-focused ETFs [8] Group 2: Performance Metrics - The Schwab U.S. Dividend Equity ETF has delivered an average annual total return of 11.5% since its inception in 2011, with a current dividend yield of around 4% [6] - The JPMorgan Equity Premium Income ETF employs a two-part strategy to generate income and reduce volatility, enhancing its appeal to investors seeking stable returns [7][9] Group 3: Investment Strategy - Investing in dividend stocks has historically outperformed non-payers by more than two-to-one over the past fifty years, indicating a strong potential for building retirement savings [4] - The focus on dividend growth stocks positions the Schwab U.S. Dividend Equity ETF to continue increasing its dividends, providing additional income for reinvestment [6]

Core Viewpoint - JPMorgan Equity Premium Income ETF (JEPI) is presented as an attractive investment option for those looking to invest in U.S. large-cap stocks while generating income through an option overlay strategy [1] Group 1 - JEPI combines large-cap stock investment with an income strategy [1] - The ETF utilizes an option overlay strategy to enhance income [1] - The article expresses a positive outlook on JEPI as a compelling investment choice [1]

Core Viewpoint - JPMorgan Equity Premium Income ETF (JEPI) is presented as an attractive investment option for those looking to invest in U.S. large-cap stocks while generating income through an option overlay strategy [1] Group 1 - JEPI combines large-cap stock investment with an income strategy [1] - The ETF utilizes an option overlay strategy to enhance income [1] - The article expresses a positive outlook on JEPI as a compelling investment choice [1]

Core Insights - Aggressive ETFs with yields over 8% have grown to approximately $160 billion in size over the past three years, indicating a significant trend in the investment landscape [1][2] - Investors are increasingly turning to complex derivative-based ETFs for higher dividends, moving away from traditional dividend-paying stocks [2][5] - This shift is particularly popular among younger generations, such as Gen Z, who are seeking alternative investment strategies to achieve financial independence and early retirement [3][4] Investment Strategy - The traditional strategy involves purchasing shares of established companies with a history of paying dividends, holding them long-term, and collecting dividends for retirement [1] - Newer strategies involve ETFs that utilize derivatives, such as covered calls, to generate higher dividend payouts, but this approach may limit long-term capital appreciation [5][6] Risks and Considerations - Derivative-based ETFs may cap potential gains, as they are required to sell stocks at predetermined prices, potentially missing out on significant value increases [6][7] - These ETFs are subject to higher tax burdens since their payouts are taxed as ordinary income rather than qualified dividends, which could impact net returns [8] - Experts suggest that these funds may underperform compared to simpler investment strategies like the S&P 500 over long periods [7] Portfolio Management - It is advisable to limit exposure to derivative-based ETFs within a diversified portfolio that includes traditional dividend stocks and growth assets to balance risk and potential returns [11] - Investors should consider management fees and tax implications when investing in dividend ETFs, as these factors can affect overall investment income [12]