Baby Boomers Are Using 6 Incredible ETFs to Generate Huge Passive Income

Many investors in 2025 need dependable passive income, and one outstanding 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. The more passive income can help cover rising costs, such as mortgages, insurance, taxes, and other expenses, the easier it is for investors to set aside money for future needs as they prepare for or begin retirement. Dependable recurring dividends from quality, high-yield stocks are a recipe for success.

One significant advantage of owning ETFs is that they can be sold at any time when the markets are trading. We screened our 24/7 Wall St. ETF research database and found 6 top funds that have these qualities:

• High dividend payout
• Trades at or at a discount to net asset value
• Major Wall Street firms manage them
• Reasonable expense ratio

Six top funds hit our screens and make sense for investors looking for dependable, often monthly instead of quarterly distributions. NAV means the current net asset value of the fund. 

JPMorgan Equity Premium Income

This massive fund has raised billions since its inception in 2020 and is managed by top portfolio managers at JPMorgan. JPMorgan Equity Premium Income (NYSE: JEPI) seeks to achieve this objective by: creating an actively managed portfolio of equity securities significantly comprised of those included in the fund’s primary benchmark, the Standard & Poor’s 500 Total Return Index (S&P 500 Index). It also utilizes equity-linked notes (ELNs), selling call options with exposure to the S&P 500 Index.

• Dividend yield = 8% paid monthly
• NAV = $56.03
• Expense ratio = 0.35%

Alerian Master Limited Partnership

This is an excellent way for investors to gain energy exposure, as Alerian Master Limited Partnership (NYSE: AMLP) 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 that, 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 = 8.03% paid quarterly
• NAV = $48.35
• Expense ratio = 0.85%

Global X U.S. Preferred ETF

This fund focuses on preferred stocks of top U.S. companies. Global X U.S. Preferred ETF (NYSE: PFFD) t invests at least 80% of its assets in the securities of its underlying index. It supports at least 80% of its assets in preferred domestic securities, principally traded in or whose revenues are primarily from the U.S. The underlying index tracks the broad-based performance of the U.S. chosen securities market.

• Dividend yield = 6.62% paid monthly
• NAV = $18.75
• Expense ratio = 0.23%

Global X SuperDividend REIT ETF

Similar to the MLP fund with energy, Global X SuperDividend REIT ETF (NASDAQ: SRET) provides investors with exposure to real estate. At least 80% of its total assets are in the securities of the underlying index, and American depositary receipts and global depositary receipts are based on these securities. The underlying index tracks the performance of REITs that rank among the highest-yielding REITs globally.

• Dividend yield = 8.66% paid monthly
• NAV = $20.78
• Expense ratio = 0.58%

iShares National Muni Bond ETF

While yielding much less, iShares National Muni Bond ETF (NYSE: MUB) is an ideal fund for investors seeking tax-free income. The underlying index includes municipal bonds, the interest of which is exempt from federal income taxes and not subject to the alternative minimum tax.

• Dividend yield = 3.15% paid monthly
• NAV = $103.51
• Expense ratio = 0.05%

Vanguard High Dividend Yield Index Fund

Vanguard High Dividend Yield Index Fund (NYSE: VYM) is a perfect taxable income ETF for more conservative investors. The manager employs an indexing investment approach designed to track the index’s performance, consisting of common stocks of companies that generally pay higher-than-average dividends. The adviser attempts to replicate the target index by investing all, or substantially all, of the fund’s assets in the stocks that make up the index.

• Dividend yield = 2.86% paid quarterly
• NAV = $130.44
• Expense ratio = 0.06%

Stocks and ETFs $5 and Lower With Massive Monthly Ultra-High-Yield Dividends

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