4 ETFs Yielding Up to 9.25% That Belong in Every Income Portfolio in 2026

"JPMorgan's Equity Premium Income ETF has become the default answer for investors who want equity income without the full volatility of an S&P 500 index fund. With $45 billion in assets and a 7.56% dividend yield, it occupies a rare position: large enough to be institutionally credible, liquid enough for retail investors, and structured to deliver monthly income."

"The mechanism is straightforward. JEPI holds a diversified portfolio of defensive large-cap stocks, with meaningful weights in industrials, healthcare, and consumer names like Johnson & Johnson, AbbVie, and PepsiCo. On top of that equity base, the fund sells exposure to S&P 500 index options through equity-linked notes, capturing options premium as income."

"The tradeoff is upside participation. When markets rally hard, JEPI's call-writing strategy caps how much of that gain shareholders capture. Over the past year, JEPI returned about 8% on a price basis. That is a reasonable outcome for an income-focused fund, but investors who want full equity upside alongside the income will find the structure limiting."

With Treasury yields at 4.13% and Fed funds rates at 3.75%, income-seeking investors are exploring alternatives beyond cash and short-term bonds. Four ETFs currently yielding approximately 6% provide different mechanisms for capturing income premiums. JPMorgan's Equity Premium Income ETF (JEPI) combines defensive large-cap stocks with S&P 500 index options strategies, generating a 7.56% dividend yield through monthly distributions. The fund holds positions in industrials, healthcare, and consumer stocks while selling call options to capture premium income. JEPI returned about 8% over the past year but caps upside participation during market rallies. The FT Vest S&P 500 Dividend Aristocrats Target Income ETF (KNG) uses a similar covered call approach but focuses on dividend-paying companies with consistent dividend increase histories, offering an alternative structure for income generation.

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