"Dividend exchange-traded funds have become a popular way to own a diverse set of stocks while generating steady, passive income. There are hundreds of dividend stocks to choose from, but two titans stand out in the space. The Vanguard High Dividend Yield ETF ( NYSEARCA:VYM) is a dividend-focused fund with a yield of 2.45%. It pays quarterly dividends and holds about 500 stocks."
"On the other hand, JEPI invests about 80% in stocks from the S&P 500 and the remainder in equity-linked notes that offer an exposure to written call options on the same index. This allows it to maintain a higher yield even during market uncertainty. Writing options to generate income is a smart way to boost the returns. Its asset under management is $41.1 billion."
Dividend exchange-traded funds provide diversified stock exposure and passive income. Vanguard High Dividend Yield ETF (VYM) tracks the FTSE High Dividend Yield index, invests in large-cap dividend-paying stocks, holds about 570 stocks, yields 2.45%, charges a 0.06% expense ratio, and has $65.9 billion AUM. JPMorgan Equity Premium Income (JEPI) yields 7.17%, pays monthly, invests roughly 80% in S&P 500 stocks and uses equity-linked notes tied to written call options to boost income. JEPI holds 124 high-quality stocks including Microsoft, Nvidia, Mastercard, and Southern Company, charges a 0.35% expense ratio, and has $41.1 billion AUM.
Read at 24/7 Wall St.
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