3 Monthly Income ETFs to Buy Before The Next Rate Cut

"As new bonds get issued at lower rates and cash rates decline, investors start to quickly look for ways they can rotate out of these asset classes and move somewhere else that pays income. Enter the income-generating monthly ETF, which often benefits twice in these kinds of environments as its yields stay competitive and the share price tends to rise as demand increases. In other words, investors win on both sides as they get a shareholder boost thanks to growth, all while receiving monthly "paychecks.""

"these monthly income ETFs offer a predictable cash flow while still offering enough diversification to feel confident that you are not too invested in any one sector. In addition, monthly payouts also solve a fairly notable practical problem in that anyone looking to utilize monthly income ETFs for help with bills needs them to arrive monthly. While many ETFs tend to lean on the quarterly approach and investors receive something of a lump-sum covering a three-month period, monthly dividend recipients don't have this concern"

Investors who chased income benefited from higher yields across bonds, income ETFs, and cash alternatives as interest rates rose. As rate cuts become more likely in 2026, markets shift toward replacing income assets, increasing attention on monthly income ETFs. Monthly income ETFs deliver predictable monthly cash flow while offering diversification that limits sector concentration. When rates fall, these ETFs often benefit twice: yields remain competitive and share prices tend to rise as demand increases, providing both income and capital appreciation. Monthly payouts also align with bill schedules, avoiding quarterly lump-sum timing issues for income-dependent investors.

Read at 24/7 Wall St.