High-Yield Monthly Dividend ETFs: Which Ones Actually Beat the Market?

Tired of waiting three months for dividend payouts? Monthly dividend ETFs are changing the game. Here’s the real talk on five options yielding 10%+ – and why some are traps.

JEPI & JEPQ: The Overachievers

JPMorgan’s JEPI ($29B AUM, 10%+ yield) is the quiet giant of this space. It sells covered calls on S&P 500 stocks, pocketing the premium as your dividend. Solid strategy, but here’s the catch: YTD return is 7.3% vs VOO’s 20.6%. You’re sacrificing upside for steady income. JEPQ (11.7% yield) does the same thing but with Nasdaq 100 – more tech exposure, 28.2% YTD (still trailing Nasdaq’s 32%). Both charge 0.35% fees, which is reasonable.

SPYI: The Underdog

Smaller fund ($220M), same covered call play on S&P 500, 10.7% yield. Outperforming JEPI YTD at 17% total return. But the killer? 0.68% expense ratio – nearly 2x the JPM funds. On $10K invested for 3 years, you’re paying $218 vs $113. Red flag.

QYLD & SDIV: Pass These

QLYD’s been around since 2013 (9 years consecutive dividends), but 11.5% yield masks weak performance – only 6.5% annualized return over 3 years. SDIV’s 12.8% yield sounds amazing until you realize it’s down over the past decade on a total-return basis. High yields often signal dying companies, not good deals.

Bottom Line: JEPI and JEPQ are your best bets if you’re comfortable capping upside for monthly paychecks. SPYI has promise but watch those fees. Skip SDIV entirely.