Top 7 Monthly Dividend ETFs for 2025: Best Picks for Passive Income

Disclaimer: The following is for informational purposes only and not financial advice. Always do your own due diligence. I am not a licensed advisor.

The Top Monthly Dividend Income ETFs Ranked from Worst to First!

If you’re looking to build a powerful monthly dividend income portfolio that provides both cash flow and long-term growth, you’re in the right place. Today, I’m breaking down the 7 best monthly dividend ETFs that are dominating the passive income landscape. This list is based on a mix of factors: yield, tax efficiency, total return potential, dividend stability, and personal portfolio strategy.

Now remember, this list that I’ve complied is based on my own opinions and my experiences; having owned all of these dividend payers at one point or another. I’ve ranked them from my least favorite to my absolute musts, and I’ll discuss why I don’t like a main Income ETF that a lot of investors currently hold.

If you’re new to dividend investing, check out the video below, or read this post here about the 7 Rules of Dividend Investing for New Investors.

#7 – JEPI: JPMorgan Equity Premium Income ETF

• Dividend Yield: ~7-8%
• Expense Ratio: 0.35
• Strategy: Large-cap equity exposure with ELN (Equity-Linked Notes) for income. Seeks to deliver a significant portion of the returns associated with the S&P 500 Index with less volatility, in addition to monthly income
• Holdings: 125
• Total Return with DRIP (Since 05/2020): 75.58%
• Why It’s Ranked #7
  • JEPI is one of the most popular income ETF on the market today
  • Actively managed, lower risk
  • Taxed at ordinary tax rate, unqualified dividends
  • Diversified, tax-efficient, and consistently high-yielding, but much lower than the others on the list.
  • The ELN strategy sacrifices a little growth upside but offers a smooth ride, great for retirees.

#6 – JEPQ: JPMorgan Nasdaq Equity Premium Income ETF

• Dividend Yield: ~9-11%%
• Expense Ratio: 0.35
• Strategy: Disciplined options overlay implements written out-of-the-money Nasdaq 100 Index call options that seek to generate distributable monthly income.
• Holdings: 107
• Total Return with DRIP (Since 05/2022): 50.13%
• Why It’s Ranked #6:
  • If you’re bullish on tech but still want that juicy monthly income, JEPQ is a better choice than QYLD.
  • It’s like JEPI’s younger, faster sibling — aggressive but still strategic.
  • Outpaces QYLD in total return and capital efficiency.
  • Has lost it’s sexy appeal with newer, more powerful, Income ETFs on the market, but still appealing to many and most.

#5 – DIVO: Amplify CWP Enhanced Dividend Income ETF

• Dividend Yield: ~4-5%
• Expense Ratio: 0.56
• Strategy: High-quality large cap companies with a history of dividend and earnings growth, along with a tactical covered call* strategy on individual stocks, strategically designed to offer high levels of total return on a risk-adjusted basis.
• Holdings: 30
• Total Return with DRIP (Since 12/2016): 166.53%
• Why It’s Ranked #5:
  • DIVO is one of the most conservative funds on this list, focusing on blue-chip dividend names like Microsoft and Johnson & Johnson.
  • The yield is lower, but more stable and tax-friendly, making this a fantastic core holding for risk-averse investors.
  • Long-term capital appreciation is more possible with this ETF.

#4 – GPIQ: Simplify Nasdaq 100 PLUS Convexity Premium ETF

• Dividend Yield: ~9-10%
• Expense Ratio: 0.29
• Strategy: Provides equity exposure to the Nasdaq-100 Index and dynamically sells call options, allowing for participation with rising markets and potential outperformance in negative to flat markets.
• Holdings: 107
• Total Return with DRIP (Since 10/2023): 54.25%
• Why It’s Ranked #4:
  • GPIX builds upon the core QQQI strategy by layering in convexity to help with upside participation.
  • Actively managed and highly stable
  • Like QQQI, this fund aims to squeeze every bit of premium out of Nasdaq 100 volatility.
  • More experimental and lightly traded, but full of potential.

#3– GPIX: Simplify US Equity PLUS Premium Income ETF

• Dividend Yield: ~8.25%
• Expense Ratio: 0.29
• Strategy: Based on the S&P 500 Large-cap equity exposure with ELN (Equity-Linked Notes) for income.
• Holdings: 508
• Total Return with DRIP (Since 10/2023): 48.46%
• Why It’s Ranked #3:
  • GPIQ combines yield with better upside participation than JEPI and JEPQ.
  • Tax-efficient structure and strong yield consistency.
  • I personally believe this could overtake JEPI in popularity among advanced income investors.
  • Provides diversified equity exposure to the S&P 500 Index and dynamically sells call options, allowing for participation with rising markets and potential outperformance in negative to flat markets.

#2 –QQQI: Defiance Nasdaq 100 Enhanced Options Income ETF

• Dividend Yield: ~14.56%
• Expense Ratio: 0.68
• Strategy: The Fund utilizes a call option strategy that may include both sold and purchased NDX index options, which may provide the opportunity for upside capture in rising equity markets
• Holdings: 106
• Total Return with DRIP (Since 01/2024): 30.23%
• Why It’s Ranked #2:
  • Actively managed by NEOS, the Fund seeks to take advantage of tax loss harvesting opportunities in addition to utilizing NDX Index options classified as section 1256 contracts, which are subject to lower 60/40 tax rates
  • The yield is high, but it may sacrifice long-term price appreciation compared to more balanced ETFs.
  • Great if you’re looking for aggressive income from tech, but less proven than others.
  • This is the #2 monthly payer that I DRIP

#1 – SPYI: NEOS S&P 500 High Income ETF

• Dividend Yield: ~12-13%
• Expense Ratio: 0.68
• Strategy: Based on the S&P 500 Large-cap equity exposure with ELN (Equity-Linked Notes) for income.
• Holdings: 510
• Total Return with DRIP (Since 08/2022): 42.56%
• Why It’s Ranked #1:
  • SPYI is the most tax-efficient monthly dividend ETF on the market + some Return Of Capital
  • Very actively managed with a covered call overlay.
  • You get S&P 500 growth exposure and high monthly income — a rare combo.
  • The fund uses options, swaps, and tax-loss harvesting to deliver high after-tax income.
  • In my portfolio, this is the #1 monthly payer that I DRIP (dividend reinvestment plan)

Why QYLD Didn’t Make the Cut

• Dividend Yield: ~11-12%
• Expense Ratio: 0.60
• Strategy: QYLD seeks to generate income through covered call writing on the Nasdaq-100 Index, which historically produces higher yields in periods of volatility.
• Holdings: 102
• Total Return with DRIP (Since 12/2013): 12.80%
• QYLD is one of the original monthly dividend ETFs, but its strategy caps upside by selling calls on all its holdings.
• Over time, QYLD has underperformed in total return compared to JEPI, JEPQ, and newer 0DTE-based ETFs like QQQI and GPIX.
• Its distributions, while high, often eat into the principal, and it lacks tax efficiency. It’s popular but arguably inefficient for long-term investors.
• In my opinion, it’s a better short-term yield play than a true long-term portfolio core.

Final Thoughts

If you’re serious about building monthly passive income and achieving financial independence through dividend ETFs, these 7 funds provide a diverse mix of strategies and tax treatment options.

Avoiding outdated structures like QYLD can help improve your portfolio’s long-term compounding and efficiency. Instead, lean into innovation: 0DTE, tax-efficient options, and diversified overlays are the future of income investing.

Remember — the goal isn’t just yield. It’s sustainable, tax-smart total return. And these ETFs deliver.