The Monthly Income ETFs I'd Buy Today For Retirement

"If you're a retiree or nearing retirement, you should be thinking about investments with steady income streams. Ideally, you'll reinvest that income, but you also have the option of cashing out your dividends if needed. This passive income can supplement your retirement account withdrawals and Social Security. Some retirees will use dividends to cover ongoing costs such as housing and groceries."

"Many individual stocks pay regular dividends, but retirees may want to buy exchange-traded funds (ETFs) since they offer diversification beyond the performance of a single company. Companies can reduce or even eliminate dividends in response to business needs and market conditions, so diversity offers protection, especially for anyone counting on dividends as part of their income stream. ETFs are a smart choice because they offer that diversity."

"JEPI is one of the world's largest actively managed ETFs. This fund invests in dividend-paying stocks represented in the S&P 500 Total Return Index, with an unusual options strategy layered on top. In addition to collecting dividends, managers use S&P 500 Index call options to generate monthly income. The ETF is most heavily weighted in technology, healthcare, and industrials. Top holdings are Alphabet ( GOOGL), Johnson & Johnson ( JNJ), and AbbVie Inc. ( ABBV)."

Retirees should prioritize investments that provide steady income streams. Dividends can be reinvested or cashed to supplement retirement account withdrawals and Social Security, and can cover ongoing living costs. Individual companies may reduce or eliminate dividends, so diversification is important to protect income. Exchange-traded funds (ETFs) provide diversification, typically lower management costs, and tax advantages. JPMorgan Equity Premium Income ETF (JEPI) invests in dividend-paying S&P 500 Total Return Index stocks and overlays S&P 500 call options to generate monthly income, with heavy weightings in technology, healthcare, and industrials. Defiance S&P 500 Target Income ETF (SPYT) targets a 20% annual income using short-term options and daily credit call spreads.

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