Baby Boomers are on the hunt for reliable sources of passive income in 2026, and one effective strategy to achieve this is through investing in exchange-traded funds (ETFs). Unlike traditional open-end mutual funds, ETFs are traded on major stock exchanges, much like individual stocks. These funds encompass a diverse range of financial assets, including stocks, bonds, currencies, debt instruments, futures contracts, and commodities such as gold.
As living expenses continue to rise—including mortgages, insurance premiums, taxes, and various other costs—the need for dependable passive income becomes increasingly vital for investors. By generating consistent, monthly dividends from high-quality, high-yield ETFs, Baby Boomers can more easily set aside funds for future requirements, especially as they transition into retirement. In an environment where prices are gradually climbing, albeit at a slower pace, these ETFs present a compelling opportunity for those seeking to boost their income.
One standout feature of ETFs is their liquidity; investors can sell them at any time during trading hours. To identify promising options, we conducted a thorough examination of our comprehensive ETF research database from 24/7 Wall St., uncovering five top-tier funds that meet the following criteria:
- High monthly dividend payouts
- Trading at a discount to their net asset value
- Managed by prominent Wall Street firms
- Reasonable expense ratios
JPMorgan Equity Premium Income
This substantial fund has attracted billions since its launch in 2020 and is expertly managed by JPMorgan’s leading portfolio managers. The JPMorgan Equity Premium Income ETF (NYSEArca: JEPI) holds approximately 125 stocks, including major technology companies, making it an excellent choice for those seeking higher income without taking on excessive risk.
The fund aims to achieve its goals by:
- Constructing an actively managed portfolio primarily consisting of equities included in its main benchmark, the S&P 500 Total Return Index.
- Utilizing equity-linked notes (ELNs) and selling call options tied to the S&P 500 Index.
Dividend yield: 8.25% paid monthly
NAV: $58.24
Expense ratio: 0.35%
Assets under management: $41.49 billion
PE ratio: 26.78
JPMorgan Nasdaq Equity Premium Income ETF
Another highly regarded fund from JPMorgan, this ETF offers a higher yield and greater exposure to the technology sector. Having gained nearly 15% since its inception and offering a generous monthly dividend, the JPMorgan Nasdaq Equity Premium Income ETF (NYSEArca: JEPQ) is particularly suited for those who can tolerate higher risk. It seeks to accomplish its objectives by:
- Forming an actively managed portfolio of equity securities significantly aligned with its primary benchmark, the Nasdaq-100 Index.
- Employing equity-linked notes (ELNs) and selling call options associated with the benchmark, while remaining non-diversified.
Dividend yield: 10.54% paid monthly
NAV: $59.17
Expense ratio: 0.35%
Assets under management: $32.49 billion
PE ratio: 33.58
Global X NASDAQ 100 Covered Call ETF
The Global X NASDAQ 100 Covered Call ETF (NASDAQ: QYLD) aims to provide investment results that correspond with the performance of the CBOE NASDAQ-100 BuyWrite Index while offering a monthly dividend. This fund allocates at least 80% of its total assets to common stocks within the index and employs a replication strategy to mirror the index’s returns.
Dividend yield: 11.55% paid monthly
NAV: $16.68
Expense ratio: 0.60%
Assets under management: $8.23 billion
PE ratio: 33.67
Global X SuperDividend ETF
The Global X SuperDividend ETF (NASDAQ: SDIV) invests a minimum of 80% of its total assets in the underlying securities of its index, including American depositary receipts (ADRs) and global depositary receipts (GDRs). The underlying index tracks 100 equally weighted companies known for providing the highest yields among equity securities globally, which also includes firms from emerging markets.
Dividend yield: 9.60% paid monthly
NAV: $24.80
Expense ratio: 0.58%
Assets under management: $1.08 billion
PE ratio: 11.02
iShares Preferred and Income Securities ETF
Managed by one of the largest players in the ETF market, the iShares Preferred and Income Securities ETF (NASDAQ: PFF) is an excellent option for conservative investors focused on growth and income. This fund invests in preferred stocks, which blend characteristics of stocks and bonds. With over $14 billion in assets and more than 450 holdings, it offers a steady monthly income with moderate risk. Although it is sensitive to fluctuations in interest rates, given that rates are currently trending lower, it remains a strong investment choice at this time.
Dividend yield: 6.29% paid monthly
NAV: $31.69
Expense ratio: 0.45%
Assets under management: $14.05 billion
PE ratio: 3.94
In conclusion, as the Russell 2000 index performs exceptionally well in 2026, consider exploring these four compelling high-yield dividend stocks that are worth buying now.
