3 High-Yield ETFs That Can Replace a Second Income

"Are you tired of side gigging? Well, you could press the breaks and start receiving passive income. Many investors replace their second income by investing in exchange-traded funds (ETFs). These are professionally managed funds that invest in hundreds and sometimes thousands of stocks. So that eliminates the task of carefully analyzing and choosing which stocks to invest in. Moreover, many ETFs pay dividends. These are regular payments companies make to shareholders out of their profits."

"The Schwab U.S. Dividend Equity ETF (SCHD) is a very popular fund among dividend investors. And while its yield of 3.90% isn't the largest on this list, it stands out for offering a great degree of stability and consistency. The Schwab U.S. Dividend Equity ETF aims to mimic the returns of the Dow Jones U.S. Dividend 100 Index. The fund invests in 103 large-cap stocks of high quality companies that pay consistent dividends."

Exchange-traded funds (ETFs) offer a passive way to replace a second income by pooling investments across hundreds or thousands of stocks. Many ETFs distribute dividends, creating regular cash flows that can substitute side-job earnings and support retirees' expenses. High-yield dividend ETFs focus on companies that return profits to shareholders. Selecting among thousands of dividend-paying ETFs can be challenging, so focusing on reliable, high-quality funds narrows choices. The Schwab U.S. Dividend Equity ETF (SCHD) yields 3.90%, tracks the Dow Jones U.S. Dividend 100 Index, holds about 103 large-cap, dividend-paying companies, and emphasizes strong fundamentals and defensive sectors.

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