"But there are ETFs out there that mix high yields with solid performance and reliability. These ETFs seek out companies that offer more than just high yields. They also screen for firms with strong financials, past performance, low fees and more. Some also take different approaches to generating income for investors including selling options in addition to investing in high-quality stocks across multiple industry sectors."
"First on our list is the JPMorgan Equity Premium Income ETF (JEPI). Unlike several other dividend ETFs, this fund provides income in two ways. It invests in large-cap stocks and sells options. It's also run by fund managers with 90+ years of combined experience. JEPI's main holdings are in the information technology, healthcare and industrial sectors. So far, the fund has maintained a high yield of about 8.25% and has delivered a five-year return of over 5%."
Many investors are choosing dividend ETFs for reliable income and capital preservation, but hundreds of options exist. High yields alone can be risky because distressed companies sometimes boost dividends to attract shareholders. Some ETFs combine high yields with strong financial screening, past performance evaluation, low fees, and diversified high-quality stock selection across sectors. Several funds also generate income by selling options in addition to holding stocks. Examples include JPMorgan Equity Premium Income ETF (JEPI), which invests in large-cap stocks and sells options, yields about 8.25%, has a five-year return over 5%, $41.49 billion in net assets, a 0.35% expense ratio, and a Morningstar Silver rating. Another fund, JEPQ, currently yields over 10% and has a five-year return above 19%.
Read at 24/7 Wall St.
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