2 of the Best High-Yielding ETFs Are On Sale and Have Massive Dividends

One of the only redeeming factors when the market experiences a knee-jerk sell-off, as we have recently witnessed, is that some investments that were too expensive just a short few weeks ago can return to a reasonably priced status much faster than they reached overbought status. We have been warning since late January that trouble could be on the horizon, and sure enough, the moment the tariffs were announced and then implemented, the market began to crack.

While the tariffs could have an impact on pricing in the future, the reality is that Treasury debt yields have done the Federal Reserve’s work for them, with the 10-year note down almost 89 basis points in 10 weeks, from 4.81% to 3.92%. Additionally, oil prices have dropped to a four-year low, with West Texas Intermediate trading at $61.78. The tariffs, combined with OPEC+ increasing output, could drive prices at the pump to their lowest levels in years.

While no one can say for sure when the selling will end, and buyers will return, one thing we do know is that some of the first buying will take place in high-quality investment products. Two of our favorite exchange-traded funds (ETFs) have taken some big hits but should see a ton of investors returning for their spectacular high-yield payouts.

In 2025, many investors require dependable passive income, and one effective way to achieve this is to invest in exchange-traded funds (ETFs). Unlike open-end mutual funds, ETFs trade on major exchanges like stocks. They own financial assets, including stocks, bonds, currencies, debt, futures contracts, and commodities such as gold bars.

One significant advantage of owning ETFs is that they can be sold at any time when the markets are trading. Two of our top funds have these outstanding qualities:

• High dividend payout
• Trade at or at a discount to net asset value
• Managed by major portfolio management professionals
• Reasonable expense ratio

JPMorgan Equity Premium Income ETF

One of our favorite funds for 24/7 Wall St. growth and income investors is the JPMorgan Equity Premium Income ETF (NYSEArca: JEPI). In addition to being run by one of the top firms on Wall Street, the strategy is designed to capitalize on market movements, whether up or down. The fund is the world’s largest actively managed ETF, offering a rich monthly dividend yield with limited duration risk. According to JPMorgan, it is suitable for use as a diversified equity solution or credit replacement.

They noted this when discussing the fund on their website:

JEPI is a conservative equity solution comprised of two fundamental building blocks: a defensive equity portfolio of U.S. large-cap stocks and a disciplined options overlay. The fund is designed to provide distributable income through a combination of dividends and options premiums. In return for the options premium, investors may forgo a portion of the market’s upside. The options premium generated can vary depending on market volatility; as volatility increases, the potential for incremental income and upside also increases.

The fund acts as an income diversifier, given its ability to distribute income without exposure to duration or credit risk relative to other income-yielding products. By selling call options on the S&P 500 Index, the ETF seeks to deliver monthly income with less volatility than the broader market.

This massive fund has raised billions since its inception in 2020 and currently manages a staggering $42 billion. It is run by top portfolio managers at JPMorgan. Once again, the fund seeks to achieve this objective by:

• Creating an actively managed portfolio of equity securities comprised significantly of those included in the fund’s primary benchmark, the Standard & Poor’s 500 Total Return Index (S&P 500 Index)
• Utilizing equity-linked notes (ELNs), selling call options with exposure to the S&P 500 Index

Dividend yield = 8.5% paid monthly
NAV = $52.94
Expense ratio = 0.35%

Alerian Master Limited Partnership ETF

While the spot price of oil has dropped dramatically, the costs involved with transfer, storage, and removal of the black gold are locked in by contract pricing. Alerian Master Limited Partnership ETF (NYSEArca: AMLP) provides exposure to the Alerian MLP Infrastructure Index (AMZI), a cap-weighted, float-adjusted, and capitalization-weighted composite of energy infrastructure master limited partnerships (MLPs) that generate the majority of their cash flow from midstream activities.

This is an excellent way for investors to gain energy exposure, as the fund typically invests at least 90% of its total assets in securities that comprise the underlying index. The underlying index includes energy infrastructure master limited partnerships (MLPs) that generate the majority of their cash flow from transporting, storing, and processing energy commodities.

Another huge plus is unlike individual MLP stocks, which send a K-1 for tax purposes and can be a hassle, this fund sends investors a 1099.

Dividend yield = 8.25% paid quarterly
NAV = $47.43
Expense ratio = 0.85%

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