During times of market volatility, many investors make a run towards safety. In many cases, this means looking at high-yielding ETFs (exchange-traded funds) that provide growth and, more importantly, income.
This is particularly true if you're thinking about retirement, nearing retirement, or you're already there. One of the last things you want to worry about is whether your money will last. Financial security becomes less about chasing big gains and more about generating reliable, consistent income.
So why not put your money to work for you—starting today?
One of the most effective ways to do that is by investing in assets that provide both passive income and long-term growth. Exchange-traded funds (ETFs), especially those offered by Vanguard and other major issuers, can play a key role in achieving that balance.
High-Yielding ETFs: JEPQ
The JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ: JEPQ) is a great example of this strategy. The ETF has delivered consistent income payouts. It paid a dividend of just over $0.50 per share on March 2, around $0.46 on February 2, and just over $0.57 on January 5. While these payments can fluctuate month to month, they highlight the fund's focus on delivering regular income to investors.
With a yield of about 11.38%, this ETF stands out as one of the more aggressive income generators on the market today. It achieves this high yield through a combination of investing in U.S. large-cap growth stocks—many of which are tied to the technology-heavy Nasdaq—and selling call options to generate additional income. This options strategy helps boost yield, though it can also limit some upside during strong market rallies.
However, JEPQ isn't the only strong dividend-paying ETF worth considering. Here are two more that offer a mix of stability, income, and long-term potential.
High-Yielding ETFs: VYM
Another popular choice is the Vanguard High Dividend Yield ETF (NYSEARCA: VYM), which takes a more conservative and diversified approach to income investing.
With an expense ratio of just 0.04%, VYM tracks the performance of the FTSE High Dividend Yield Index. The fund currently holds over 500 stocks, giving investors exposure to some of the most established dividend-paying companies in the U.S. market. Its top holdings include major blue-chip names like Broadcom (NASDAQ: AVGO), JPMorgan Chase (NYSE: JPM), Exxon Mobil (NYSE: XOM), Walmart (NYSE: WMT) and Johnson & Johnson (NYSE: JNJ).
The ETF currently offers a yield of around 2.29% and pays dividends on a quarterly basis. While its yield is lower than JEPQ's, VYM makes up for it with stability and long-term reliability. Historically, funds like VYM have provided steady dividend growth over time, which can help investors keep pace with inflation.
Recent payouts include approximately $0.94 per share in September, about $0.84 earlier in the year, and roughly $0.86 in June. These consistent distributions make it a solid "core" holding for income-focused portfolios.
High-Yielding ETFs: VDE
Another strong option for dividend seekers is the Vanguard Energy Index Fund ETF (NYSEARCA: VDE), which focuses specifically on the energy sector.
With an expense ratio of 0.09% and a yield of about 2.43%, VDE offers targeted exposure to oil, gas, and energy infrastructure companies. The fund holds roughly 100+ stocks, including major players like Chevron (NYSE: CVX), ConocoPhillips (NYSE: COP), Williams Companies (NYSE: WMB), and EOG Resources (NYSE: EOG).
Like VYM, VDE pays dividends quarterly. It recently distributed just over $1.02 per share in December, following a payout of about $1.00 in September. Energy stocks are known for their cyclical nature, but they can also provide strong income during periods of high commodity prices and global demand.
One major tailwind for the energy sector right now is rising global demand—especially for electricity. The rapid expansion of technologies like artificial intelligence, data centers, and electrification is putting increasing pressure on energy infrastructure. According to the International Energy Agency, global electricity demand is expected to grow at an annual rate of about 4% through 2027. That trend could continue to support revenues—and dividends—for energy companies in the years ahead.
This Could Be a Time to Put Safety First
High-yield ETFs can be powerful tools for building a steady stream of passive income, particularly for retirees or those nearing retirement. Whether you're looking for high monthly income like JEPQ, diversified dividend exposure like VYM, or sector-specific opportunities like VDE, there are options to match a variety of risk tolerances and income goals.
As always, it's important to consider how these ETFs fit into your broader financial plan. While high yields can be attractive, factors like market volatility, interest rates, and economic conditions can all impact performance and payouts over time.
