6 Monthly Dividend ETFs That Won't Collapse in a Down Market

"But with so many dividend ETFs out there, how do you pick the ones that can remain resilient even during down markets? The ETFs that have historically done this are known to screen for high-quality and well-established companies with strong financials and consistency in paying out and even raising dividends year over year. Many are heavily invested in defensive sectors which typically remain stable during down markets. And some also engage in alternative income generating strategies like selling options."

"The JPMorgan Equity Premium Income ETF (JEPI) invests in large-cap stocks with low volatility, which could provide defense in a down market. As an actively managed fund, it also uses its proprietary research to find under-and-over valued stocks with preferable risk/adjusted return characteristics. And it also takes a secondary approach to generating income by selling options. This strategy has helped JEPI deliver a high yield of over 8%."

A sudden market downturn can deliver a serious blow to portfolios, but panicking typically worsens outcomes. Staying invested and diversified helps weather market storms over the long run. Dividend ETFs can provide steady income, capital appreciation, and downside protection. Resilient dividend ETFs tend to screen for high-quality, well-established companies with strong financials and consistent dividend histories, concentrate in defensive sectors, and sometimes use alternative income strategies such as selling options. Six monthly dividend ETFs are highlighted as potential protectors for savings. JPMorgan Equity Premium Income ETF (JEPI) focuses on large-cap, low-volatility stocks, uses active research and option-selling, yields over 8%, and holds $41.49 billion.

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