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Yahoo
03-06-2025
- Business
- Yahoo
2 ETFs I Plan to Buy in June to Increase My Passive Income
ETFs can make it easy to invest in different passive income strategies. The Vanguard Total Bond Market ETF provides broad exposure to high-quality bonds. The JPMorgan Nasdaq Equity Premium ETF generates income from writing call options. 10 stocks we like better than Vanguard Total Bond Market ETF › My long-term financial goal is to generate enough passive income to cover my basic living expenses. Once I reach my target, I won't have to work to pay my bills. I also won't have to sell stock during retirement to fund my financial needs. My strategy is pretty simple. I invest in income-generating assets each month as a march toward my passive income target. Exchange-traded funds (ETFs) are among the many vehicles I use on my journey to financial independence. Two that I plan to buy more of this June are Vanguard Total Bond Market ETF (NASDAQ: BND) and JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ: JEPQ). Here's why I'm using these two ETFs to increase my passive income. Investing in bonds is one of the lowest-risk ways to generate passive income. However, it takes more work to manage a bond portfolio than stocks. You need to learn about bond ratings, building a bond ladder, and other factors that can affect returns. In the process of doing just that, I've found that investing in bond ETFs is the best way to gain exposure to the bond market and the fixed income they can generate. One of my go-to bond ETFs is the Vanguard Total Bond Market ETF. The ETF provides broad exposure to taxable investment-grade U.S. dollar-denominated bonds. It holds bonds issued by the U.S. government, government agencies, U.S. corporations, and foreign companies and countries that issue bonds in U.S. dollars. This ETF currently holds nearly 11,350 bonds. Nearly 69% of those bonds are from the U.S. government or government agencies. Meanwhile, about 18% have A-rated credit or higher, while the remaining 13% are BBB-rated bonds. These are all higher-quality bonds with a relatively low risk of default. Because they have an average yield to maturity of 4.5% and an average effective maturity of 8.2 years, this ETF should provide a fairly stable stream of interest payments. It distributes the income it receives to investors each month. The Vanguard Total Bond Market ETF provides investors with broad exposure to high-quality bonds for a very reasonable price, given its ultra-low 0.03% expense ratio. That enables investors like me to keep more of the interest income produced by the bonds it holds. Writing covered calls is another strategy that many investors use to generate passive income. This technique can be very lucrative. However, it requires fairly active portfolio management. An easier way to collect options income is to invest in the JPMorgan Nasdaq Equity Premium Income ETF. The fund's management team writes out-of-the-money call options -- that is, those above the current price -- on the Nasdaq-100 Index. That strategy enables the ETF to generate income and distribute it to investors each month. It can be a very lucrative strategy: As that chart shows, the fund has a higher income yield than several other asset classes, including U.S. government bonds and riskier -- and higher-yielding -- junk bonds. The yield shown is an annualization of its last distribution payment, which was higher due to market volatility in the period. Over the past 12 months, the fund's yield is a little lower at 10.4%, which is still very lucrative. The options premium income the fund generates will rise and fall based on volatility and market pricing. However, it's an attractive place to potentially earn an outsized income stream. In addition to the passive income, the fund provides equity market exposure. It holds a portfolio of stocks selected by combining an applied data science approach to fundamental research. It aims to construct a portfolio that will produce less volatile returns than the Nasdaq-100 while still providing investors with upside potential. I like this ETF because it delivers a lucrative income stream and higher appreciation potential, which should help grow the value of my portfolio over the long term. I like to use ETFs to add more sources of passive income to my portfolio. I routinely buy more of these ETFs, which helps increase my passive income. This month, I'm buying more shares of Vanguard Total Bond Market ETF and JPMorgan Nasdaq Equity Premium Income ETF because they make it super easy to collect passive income from bonds and options. Before you buy stock in Vanguard Total Bond Market ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Vanguard Total Bond Market ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor's total average return is 979% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Matt DiLallo has positions in JPMorgan Nasdaq Equity Premium Income ETF and Vanguard Total Bond Market ETF. The Motley Fool has positions in and recommends Vanguard Total Bond Market ETF. The Motley Fool has a disclosure policy. 2 ETFs I Plan to Buy in June to Increase My Passive Income was originally published by The Motley Fool Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
23-05-2025
- Business
- Yahoo
Record ETF Launches Drive Active Fund Growth in 2025
The global exchange-traded fund industry launched 847 new products in the first four months of 2025, setting a new record that surpassed the previous high of 563 launches recorded in the same period in 2022, according to research and consultancy firm ETFGI. The launch pace shows fund companies are racing to meet investor demand for new strategies, while active ETFs pull in billions as investors seek professional management over index-tracking. The 847 new ETF launches were distributed across regions, with the United States leading at 319 products, followed by Asia Pacific excluding Japan at 270 and Europe at 116, according to the ETFGI report. After accounting for 179 closures, the industry recorded a net increase of 668 products. A total of 266 providers contributed to these new listings across 35 exchanges globally, according to ETFGI. Meanwhile, 179 closures were reported from 71 providers across 20 exchanges during the same period. Among the newly launched products, 415 were active ETFs, while 286 were index equity ETFs and 52 were index fixed-income ETFs, according to ETFGI data. iShares led with 31 new listings, followed by Global X with 24 launches. Active ETFs continued their growth trajectory, with assets reaching a record $1.3 trillion at the end of April, according to ETFGI's Active ETF Industry Landscape Insights Report. These funds attracted $32.2 billion in net inflows during April alone. The JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) recorded the largest individual net inflow of $1.7 billion in April, according to ETFGI. Other top performers included the Dimensional International Value ETF (DFIV) with $970.3 million, the Capital Group Dividend Value ETF (CGDV) with $845.1 million and the Avantis US Large Cap Value ETF (AVLV) with $799.2 million in monthly inflows. Year-to-date net inflows through April into actively managed ETFs reached $176.8 billion, according to the report. This marks 61 consecutive months of net inflows into active strategies, reflecting the sustained investor demand. Equity-focused actively managed ETFs led inflows with $22.5 billion during April, bringing year-to-date equity inflows to $96.2 billion, according to ETFGI. Fixed-income active ETFs also saw strong demand with $7.3 billion in April | © Copyright 2025 All rights reserved
Yahoo
30-04-2025
- Business
- Yahoo
51-Year-Old Making $4,970 a Month In Dividends Shares His Top 6 Stocks, Aims To 'Create Generational Wealth For Kids And Their Families'
Dividend stocks are gaining ground as investors scramble to safeguard their portfolios amid the ongoing US-China trade war. Jared Hoff, a senior portfolio manager at Federated Hermes, said while talking to The Wall Street Journal that dividend stocks are seeing a surge in demand, reversing the trend of the past couple of years when demand for risk-averse investments was low. Don't Miss: 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. Can you guess how many retire with a $5,000,000 nest egg? . A few days ago, a dividend investor shared his income report and holdings on r/Dividends — a community of income investors with over 700,000 followers. The portfolio details shared by the investor showed his monthly dividend income was roughly $4,973. The investor said he had about $1.2 million in cash equivalents, like certificates of deposit and money market funds, with paid-off house and cars. The investor, who plans to retire in three years, said he had 'ignored' dividend stocks until recently but began shifting into income-generating investments following the recent market pullback. "I don't want to lose the growth aspect of my portfolio as I want to see it continue to grow," he wrote. "We plan to use the nearly $5000 monthly dividend income as of today and reinvest the dividends for the next 8.5 years." Trending: The secret weapon in billionaire investor portfolios that you almost certainly don't own yet. The investor said his portfolio was down about 12.5% in 2025 as of the time of his post. He sold tech equities where he had already secured "huge" gains to pile into dividend stocks. "We have five kids aged 17-23 and the goal was to create generational wealth for them and their future families," he added. JPMorgan Nasdaq Equity Premium Income ETF JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ:JEPQ) is a high-yield covered call ETF that distributes monthly dividend income. The ETF invests in Nasdaq companies and generates extra income by selling call options. NEOS S&P 500 High Income ETF The NEOS S&P 500 High Income ETF (CBOE: SPYI) is a high-yield covered call ETF that pays monthly dividend income. It invests in some of the top S&P 500 companies and generates extra income by selling call options on stocks, generating extra premium income for shareholders. SPYI has a distribution rate of more than 12%. Vanguard Total Bond Market Index Fund ETF Vanguard Total Bond Market Index Fund ETF (NASDAQ:BND) was among the top bond ETFs in the portfolio. The fund provides exposure to the investment-grade U.S. dollar-denominated bond market and pays Broadcom (NASDAQ:AVGO) has a dividend yield of about 1.2%. The stock is down 17% this year amid broader market volatility and tariffs on semiconductors. Earlier this month, Oppenheimer called Broadcom one of its top picks in the semiconductor space. JPMorgan Chase JPMorgan Chase (NYSE:JPM) has a dividend yield of 2.3%. The banking giant's shares are up 8% over the past six months. Recently, JPMorgan reported first-quarter earnings that beat Wall Street estimates. Revenue rose 9.7% year over year in the period. Home Depot Home Depot (NYSE:HD) has a dividend yield of 2.5%. The stock is down 8% this year. The company's CEO, Edward Decker, was among the CEOs of major retailers who met with President Donald Trump earlier this month to discuss the impact of tariffs on their companies. Read Next:Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – Image: Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article 51-Year-Old Making $4,970 a Month In Dividends Shares His Top 6 Stocks, Aims To 'Create Generational Wealth For Kids And Their Families' originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Yahoo
19-04-2025
- Business
- Yahoo
Frugal Dreamer With $100K Eyes $5K In Passive Income, Says 'There Are Countries You Could Live Off From It' — Reddit Debates Strategy
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Financial independence doesn't always require a fortune but rather a smart strategy. With the right dividend portfolio, even modest savings can generate enough passive income to fund a comfortable lifestyle in low-cost regions. The secret is balancing yield, safety, and smart spending. One Redditor, grappling with this exact scenario of needing a certain passive income per month from dividends, shared his concerns with a community of investors on the online discussion board. He asked the community for advice on which assets to invest his $100,000 in order to generate $5,000 per month, beat inflation, and preserve capital. He also mentioned that he wants to bypass dividend yield traps. Don't Miss:Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – 'I would consider [real estate investment trusts] like [Realty Income Corporation (NYSE: O)] right now, or [NNN REIT (NYSE: NNN)] with yield exactly 5% after [withholding tax]. But what else? I know it may sound silly to some of you but there are countries where you could live off from it over a nice quarter,' he wrote. Now, let's dive into the advice he received from Reddit's dividend community on how to make this dream a reality. Where to Invest $100,000 to Generate $5,000 in Passive Income Per Month? Reddit Jumps With Suggestions Consider Higher-Yield Plays Like Dividend ETFs, REITs, and BDCs While the poster mentioned he doesn't want to invest in high-yield traps, many Redditors recommended several dividend ETFs, real estate investment trusts, and business development companies that generate a higher yield but are seen as safe by them. 'What about [JPMorgan Equity Premium Income ETF (NYSE: JEPI)] and [JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ: JEPQ)]? They yield 8% to 10% before taxes,' a commenter suggested. Trending: Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." Suggesting business development companies, this Redditor recommended an investment strategy: '8% rule with [business development companies]. Invest in [business development companies] that yield more than 8%, use 8% for you, and reinvest anything above that to make sure your income keeps growing.' Advising the investor to avoid O for the moment, this user mentioned T-bills, an ETF, and a few real estate investment trusts: 'I would avoid buying O right now. Their prospects are not too great compared to some other [real estate investment trusts]. I would either take a safe course with T-bills boosted by a smaller allocation to JEPQ, or diversify into five to ten strong [real estate investment trusts] with good future prospects. [VICI Properties (NYSE: VICI)], [W. P. Carey (NYSE: WPC)], [Alexandria Real Estate Equities (NYSE: ARE)], [REX American Resources Corporation (NYSE: REX)], to name a few.' 'I might accumulate some more, honestly, for a few months till a bottom is hit, then sell to buy more [Schwab U.S. Dividend Equity ETF (NYSE: SCHD)], [Ares Capital Corporation (NASDAQ: ARCC)], [Berkshire Hathaway (NYSE: BRK-B)],' another comment Treasury Bills and Short-Term Bonds to the Portfolio Several commenters emphasized ultra-safe income plays, particularly Treasury bills and short-term bond ETFs like iShares 0-3 Month Treasury Bond ETF (NYSE:SGOV). 'SGOV is a type of investment called an ETF, which stands for exchange-traded fund. Think of it like a basket that holds lots of tiny pieces of investments, and you can buy a piece of that basket. SGOV is special because it invests in something called U.S. Treasury bills (also called T-bills). These are like short-term loans that people give to the U.S. government. In return, the government promises to pay the money back soon, with a little bit of extra money added (called interest). The 'dividend' varies based on how much those interest bonds are paying,' a commenter detailed. 'T-bill and chill, no brainer,' a Redditor wrote. Another user recommended SGOV, mentioning it will generate around $4,100 in income per year: 'SGOV will give $4,100 a year currently.' Read Next: With Point, you can Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Image: Shutterstock Send To MSN: 0 This article Frugal Dreamer With $100K Eyes $5K In Passive Income, Says 'There Are Countries You Could Live Off From It' — Reddit Debates Strategy originally appeared on Sign in to access your portfolio
Globe and Mail
10-04-2025
- Business
- Globe and Mail
Nasdaq Bear Market: Why I'm Buying This High-Yielding Nasdaq ETF Hand Over Fist as the Market Sells Off
At the time of this writing, the Nasdaq Composite index is experiencing a ferocious bear market, cratering nearly 25% from its peak late last year. The sell-off has intensified recently due to growing concerns about how the Trump administration's "reciprocal tariff" policies will affect the global economy. Many economists and financial experts are increasingly concerned that they could spark a global trade war that could ignite a recession. The market volatility could last a while. That's one reason why I've been loading up on the JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ: JEPQ). The exchange-traded fund (ETF) enables investors to benefit from the upside potential of the Nasdaq-100 with less volatility. One way it does that is by distributing income to investors each month. With the ETF's price falling alongside the market, I expect to generate more income and higher returns from this position in the future. Exposure to the Nasdaq-100 with less volatility The JPMorgan Nasdaq Equity Premium Income ETF has a dual mandate. The fund aims to provide investors with a monthly income stream. It also seeks to give them exposure to the upside of the Nasdaq-100 with less volatility. The fund has a two-part strategy to achieve this goal: Underlying equity portfolio: The fund's managers use an "applied data science approach to fundamental research" to construct a portfolio based on the Nasdaq-100. It holds many of the stocks in that index, though it doesn't match the index's allocation. Disciplined options overlay strategy: The fund writes (sells short) out-of-the-money (above the current price) call options on the Nasdaq-100 index. By writing options, the fund generates premium income (it gets paid the option's value, known as its premium). It distributes this income to investors each month. The fund aims to deliver similar upside to the Nasdaq-100 index. The ETF outperformed that index in the fourth quarter of 2024. Contributing to its outperformance in the period was a higher weighting to Marvell Technology, which had a strong quarter due to the significant growth of its data center segment. The fund also benefited from a lower weighting to Applied Materials, which slumped in the period due to concerns about its guidance for the upcoming quarter. The ETF has also delivered a better relative performance during the Nasdaq's plunge this year. ^NDX data by YCharts. A lucrative income stream The other factor contributing to its higher relative total return compared to the Nasdaq-100 is the options premium income the fund generates and distributes to investors. This income fluctuates from month to month based on the amount of income it collects from writing options on the index. What's notable about options premiums is that market volatility is one of the things that factors into the price. As market volatility increases, options premiums rise. Because of that, the income generated by this fund should increase in the near term, which should support higher monthly distribution payments. The fund already offers a lucrative monthly income stream. As the chart below shows, it has a much higher yield relative to other asset classes. That already high yield will likely be even more lucrative as the fund capitalizes on the increased volatility to generate more options income in the current environment. This income will help provide a tangible return to help further offset the decline in the ETF's value during the market sell-off. Meanwhile, even when volatility eventually subsides (which it always does), the fund should still produce lucrative monthly income, especially from the lower level that I added to my position. A lower-risk way to invest in the Nasdaq The current bear market in the Nasdaq is the perfect opportunity to load up on the JPMorgan Nasdaq Equity Premium Income ETF. The fund provides a less volatile way to invest in the index, which offers high return potential. It also pays a lucrative monthly income stream, giving me a tangible return and cash flow to reinvest as other opportunities emerge. I plan to continue buying shares of the ETF if the Nasdaq keeps falling, to boost my income and future return potential when the market eventually recovers. Don't miss this second chance at a potentially lucrative opportunity Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $249,730!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $32,689!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $469,399!* Right now, we're issuing 'Double Down' alerts for three incredible companies, and there may not be another chance like this anytime soon. Continue » *Stock Advisor returns as of April 5, 2025
