"If you're even thinking about retirement, one of the last things you need to worry about is consistent cash flow. Instead, you'll want your money to help make you money. One way to do that is with high-yielding exchange-traded funds (ETFs). With high-yield funds, you aren't constantly timing withdrawals or watching market swings. Instead, these funds are a passive investment idea that can deliver consistent income while still offering long-term growth potential."
"Look at the JPMorgan Nasdaq Equity Premium Equity income ETF ( JEPQ), for example. With a yield of about 11.6%, the ETF generates income by selling covered call options on its portfolio while also investing in U.S. large-cap growth stocks. It's paying out the option premium to investors, supplementing the dividend paid by its holdings. Instead of relying just on traditional dividends, JEPQ uses options to convert price movement into cash flow."
High-yield ETFs provide a path to steady income in retirement without constant withdrawal timing or market watching. These funds offer regular distributions while preserving long-term growth potential. ETFs supply diversification, professional management, and low costs, which are valuable when shifting from accumulation to preservation and income. The JPMorgan Nasdaq Premium Equity Income ETF (JEPQ) yields about 11.6% by selling covered call options on U.S. large-cap growth stocks and pays option premiums in addition to dividends, producing fluctuating but meaningful payouts. The Vanguard International High Dividend Yield ETF (VYMI) yields 3.64%, has a 0.17% expense ratio, and holds 1,534 global companies including Nestlé, Novartis, Toyota, and Shell.
Read at 24/7 Wall St.
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