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Smart Ways to Make Money from ETFs in 2025

USAWednesday, December 31, 2025
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In 2025, experts discussed how certain ETFs can help individuals earn a consistent income. They highlighted three main types: Dividend ETFs, Bond ETFs, and Covered-Call ETFs. These funds are favored for their ability to provide regular payouts.

Dividend ETFs

Dividend ETFs are particularly popular. They invest in companies that distribute profits to shareholders. Experts recommend selecting funds that offer a balance of value, stability, and quality. Key factors include low fees and smart diversification.

  • Top Picks:
  • Vanguard's Dividend Appreciation
  • Vanguard's High Dividend Yield
  • Schwab's U.S. Dividend Equity ETF

Bond ETFs

Bond ETFs are another reliable option. They provide stability and balance to a portfolio. Bonds are generally less risky than stocks and can help smooth out market volatility.

  • Core Bond Funds:
  • Vanguard's Total Bond Market
  • iShares' Core U.S. Aggregate Bond

Covered-Call ETFs

Covered-Call ETFs are growing in popularity. These funds use options to generate additional income. They are especially appealing to retirees and those seeking higher yields.

  • Notable Example:
  • JPMorgan's Equity Premium Income ETF

Choosing the Right ETF

Selecting the right ETF depends on your goals and risk tolerance. It's crucial to understand how each type fits into your overall strategy. Consulting with a financial advisor can help tailor your choices to your specific needs.

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