Monthly Dividend ETFs: How to Build Passive Income in Dollars with Ease

The reality is simple: investing in dividend-paying ETFs has become the gateway for those wanting to receive real dollar passive income. In a scenario where inflation erodes savings, Brazilian interest rates squeeze gains, and exchange rates fluctuate mercilessly, one thing has become clear — diversifying into strong currencies is no longer a luxury but a necessity.

But what’s the secret? While most Brazilians struggle to build a complete international portfolio, some simply buy shares of a single fund that does the heavy lifting: selects dozens of quality stocks, distributes profits monthly, and delivers the results in dollars to your account.

This is the power of ETFs that pay monthly dividends. Let’s uncover how they work, which are the best in the market, and most importantly: how you can get started.

Why is ETF the Right Choice for Dollar Passive Income?

Forget the idea that you need to be an expert in balance sheet analysis or track dozens of American stocks individually. A dividend-paying ETF does this for you — and with a ridiculously low management fee.

When you invest in such a fund, you’re buying instant access to a diversified portfolio. Here’s how it works: the ETF selects companies with a proven track record of profit distribution (many of them from the financial, energy, or real estate sectors); collects dividends monthly; and passes everything on to shareholders in dollars.

The result? You receive predictable income every month, without selling positions, market timing stress, or complications. For the Brazilian investor aiming to dollarize gains and create a steady cash flow, this is the cleanest strategy there is.

The 6 Best Monthly Dividend ETFs to Start

1. JPMorgan Equity Premium Income ETF (JEPI) — The “Gold” Option

If you had to choose just one dividend-paying ETF for your portfolio, it would be hard not to pick JEPI. Since 2020, this fund has become a sensation among investors seeking dollar passive income without losing sleep.

The secret: JEPI isn’t just an ordinary ETF. It combines quality stocks (like Coca-Cola, AbbVie, UPS) with sophisticated strategies using derivatives (ELNs) that capture monthly option premiums. All translated into a consistent, monthly dividend.

Numbers that speak:

• Assets: US$ 40 billion
• Fee: 0.35% per year
• 12-month yield: ~8.4%
• Volume: 5 million shares/day

Why is it worth it? With a yield above 8% and much lower risk than a 100% stock ETF (beta of just 0.56), JEPI has amassed billions in just a few years. The portfolio prioritizes defensive sectors, meaning less volatility while you receive your monthly dividend.

The weak point: In strong bull markets, JEPI lags behind. This is because part of its strategy involves selling options — the fund sacrifices extreme gains in exchange for predictable income.

( 2. Global X NASDAQ-100 Covered Call ETF )QYLD### — For Those Who Want Bold Yield

QYLD isn’t for timid investors. With a yield of over 13% per year, it promises dollar passive income that makes any bank deposit look like a joke.

How it works: Imagine you buy all the stocks of the Nasdaq-100 (Apple, Microsoft, NVIDIA, Amazon…) and, on the same day, sell call options on them. The premiums received from selling these options? Fully distributed to shareholders every month. That’s QYLD.

The numbers:

• Assets: US$ 8.09 billion
• Fee: 0.60% per year
• 12-month yield: 13.17%
• Volume: 7 million shares/day

The truth about QYLD: That 13%+ yield is real, but it comes at a cost. When the Nasdaq soars, QYLD doesn’t keep up — because the sold options limit upside. If you invest R$ 100,000 and the fund rises 20%, you might capture about 10%. But you still receive 13% in dividends every month.

Important lesson: This dividend-paying ETF is perfect for those seeking INCOME, not appreciation. And those aware that in strong bull cycles, it will lag behind.

( 3. Global X SuperDividend ETF )SDIV( — The International Bet

Want real diversification? SDIV puts your passive income in dollars across 100 of the world’s highest dividend-paying stocks — from the US, Brazil, Hong Kong, Canada, UK, all together.

Snapshot:

• Assets: US$ 1.06 billion
• Fee: 0.58% per year
• 12-month yield: 9.74%
• Since: June 2011

Composition: Financial )~28%###, Energy (~18%), Real Estate (~13%). Geographically, 25% US, 15% Brazil, 12% Hong Kong, with the rest distributed.

Why consider it: If you believe growth opportunities are outside the US, SDIV offers real exposure without the hassle of researching individual stocks. Dividends come monthly, in dollars, deposited directly.

The risk: Companies with very high dividends don’t always have solid fundamentals. There’s real risk of dividend cuts. Also, cyclical sectors like energy and financials fluctuate a lot — this ETF can have sharp drops during economic crises.

( 4. Global X SuperDividend U.S. ETF )DIV( — The Safer American Version)

If SDIV is the adventurous cousin, DIV is the cautious one. Same dividend-paying ETF, but focused only on low-volatility US stocks.

The data:

• Assets: US$ 624 million
• Fee: 0.45% per year
• 12-month yield: 7.30%
• 50 selected stocks

What changes: While SDIV seeks the highest yields worldwide, DIV says “I’ll take the highest yields in the US, but only those with low volatility.” Result: a more stable portfolio, fewer peaks and valleys.

Dominant sectors: Utilities (21%), Real Estate ###19%(, Energy )19%(, Basic Consumption )10%(. It’s like building a retiree’s portfolio — safe, boring, reliable.

The problem: Being too conservative, it misses opportunities. And there’s a risk of “dividend trap” — when a high-paying company suddenly cuts dividends.

) 5. Invesco S&P 500 High Dividend Low Volatility ETF (SPHD) — Classic Balance

SPHD is the definition of “middle ground” in dividend ETFs. Not as aggressive as QYLD, but offers more growth than DIV.

Main data:

• Assets: US$ 3.08 billion
• Fee: 0.30% per year
• 12-month yield: ~3.4%
• 50 S&P 500 stocks

Strategy: Smart beta — the fund rebalances every six months to maintain a balance between high dividends and low fluctuation. You get companies like Pfizer, Verizon, Consolidated Edison — large, mature, with predictable cash flow.

When to choose: If your goal is to receive monthly dividends but also participate in moderate appreciation, SPHD offers an interesting balance. Modest yield (3.4%), but greater growth potential than PFF or DIV.

( 6. iShares Preferred and Income Securities ETF )PFF( — The Middle-Class Asset

Do you know what preferred shares are? Well, PFF invests in these — a middle ground between common stocks and debt securities.

The numbers:

• Assets: US$ 14.11 billion
• Fee: 0.45% per year
• 12-month yield: ~6.55%
• Over 450 assets

What makes it different: Preferred shares pay fixed dividends, usually monthly, with low volatility. Plus, over 60% of the fund is in financial institutions )JPMorgan, Bank of America, Wells Fargo### — banks that issue these shares to raise capital smartly.

Clear advantage: Predictable income, price stability, monthly dividends. It’s like having a fixed-income bond (but with the flexibility of trading on the stock exchange).

The catch: When US interest rates rise, these stocks fall in price (because new issues offer higher yields). If a banking crisis occurs, PFF suffers concentrated losses. And don’t expect appreciation — the focus is on income.