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Monthly-paying ETFs: steadiness and growth, not just yield

ETFs that pay every month, compared on yield, how steady the payments have been, whether the payout kept up with inflation over five years, and how the fund itself held up.

48funds compared

12option-income funds

12stock funds

9preferred and multi-asset

15bond funds

Oct 27, 2026data as of

A monthly payout is the closest thing an investment has to a paycheck, which is why monthly-paying funds are popular with retirees who budget month to month. But how often a fund pays says nothing about how much it earns. A fund that pays monthly hands out the same income as one that pays quarterly, in smaller pieces, and some of the highest monthly payers have funded that income with a shrinking share price.

So besides the yield, this page shows two things a paycheck needs: how steady the payments have been over the past year, and whether the payout has kept up with inflation over five years. The last columns show how the fund itself has held up, because a paycheck is only as good as the savings behind it.

Option-income funds

Stock funds that sell options and pay out the premiums every month. The highest payouts on this page, in exchange for giving up part of the market’s gains. How option-income funds work.

12 funds, with trailing yields from 6.27% (DIVO) to 14.16% (QQQI).
Steadiest payments over the last year: QQQI (±2%). Most variable: DIVO (±84%).
On the 10-year 4% rule test from Oct 2016, 2 of 2 ended with more than the $1 million they started with.

Fund	Yield	Swing	Income, 5 yr	Cost	Net assets	5 yr	2022 drop	4% rule test
JEPI JPMorgan Equity Premium Income Fund	7.99%	±9%	—	0.35%	$44.75B	+7.4%	-12.4%	too new
JEPQ JPMorgan NASDAQ Equity Premium Income ETF	11.54%	±12%	—	0.35%	$40.66B	—	—	too new
QQQI NEOS Nasdaq 100 High Income ETF	14.16%	±2%	—	0.68%	$13.11B	—	—	too new
SPYI NEOS S&P 500 High Income ETF	11.85%	±2%	—	0.68%	$10.41B	—	—	too new
QYLD Global X NASDAQ 100 Covered Call ETF	11.7%	±3%	-16.3%	0.6%	$8.09B	+8.5%	-24.0%	$1.81M
DIVO Amplify CWP Enhanced Dividend Income ETF	6.27%	±84%	+53.1%	0.56%	$7.19B	+10.8%	-12.0%	too new
RDVI FT Vest Rising Dividend Achievers Target Inco…	8.91%	±5%	—	0.75%	$3.59B	—	—	too new
KNG FT Vest S&P 500 Dividend Aristocrats Target I…	8.92%	±3%	+135.2%	0.74%	$3.53B	+6.1%	-16.6%	too new
XYLD Global X S&P 500 Covered Call ETF	10.21%	±10%	—	0.6%	$3.24B	+7.5%	-17.7%	too new
FTHI First Trust BuyWrite Income ETF	9.78%	±2%	+140.6%	0.75%	$2.35B	+10.7%	-11.5%	$1.57M
TLTW iShares 20+ Year Treasury Bond BuyWrite Strat…	11.31%	±36%	—	0.35%	$1.84B	—	—	too new
RYLD Global X Russell 2000 Covered Call ETF	12.34%	±4%	-35.1%	0.6%	$1.37B	+2.4%	-16.2%	too new

Stock funds

Stock funds that pass on their companies’ dividends every month instead of every quarter.

12 funds, with trailing yields from 0.58% (SPUS) to 22.89% (BITO).
Steadiest payments over the last year: SPLV (±4%). Most variable: BITO (±163%).
On the 10-year 4% rule test from Oct 2016, 8 of 8 ended with more than the $1 million they started with.

Fund	Yield	Swing	Income, 5 yr	Cost	Net assets	5 yr	2022 drop	4% rule test
DIA SPDR Dow Jones Industrial Average ETF Trust	1.37%	±72%	+27.9%	0.16%	$45.21B	+10.0%	-18.9%	$2.65M
DGRW WisdomTree US Quality Dividend Growth Fund	1.31%	±60%	0.0%	0.28%	$16.60B	+11.8%	-15.6%	$2.90M
SPLV Invesco S&P 500® Low Volatility ETF	2.19%	±4%	+70.1%	0.25%	$7.09B	+5.8%	-14.9%	too new
DLN WisdomTree U.S. LargeCap Dividend Fund	1.89%	±39%	+26.0%	0.28%	$6.14B	+12.4%	-14.2%	$2.49M
DON WisdomTree U.S. MidCap Dividend Fund	2.5%	±55%	+35.2%	0.38%	$3.96B	+8.6%	-11.7%	$1.74M
SPHD Invesco S&P 500® High Dividend Low Volatility…	4.85%	±4%	+55.0%	0.3%	$3.41B	+7.9%	-11.6%	too new
SPUS SP Funds S&P 500 Sharia Industry Exclusions E…	0.58%	±9%	-2.8%	0.45%	$3.14B	+15.0%	-27.6%	too new
DES WisdomTree U.S. SmallCap Dividend Fund	2.53%	±70%	+30.1%	0.38%	$2.19B	+7.6%	-18.6%	$1.46M
BITO ProShares Bitcoin ETF	22.89%	±163%	—	0.95%	$1.66B	+1.3%	-59.3%	too new
DTD WisdomTree U.S. Total Dividend Fund	1.96%	±38%	+27.3%	0.28%	$1.61B	+12.0%	-13.7%	$2.35M
DHS WisdomTree US High Dividend Fund	3.46%	±34%	+18.1%	0.38%	$1.50B	+12.6%	-4.1%	$1.81M
PEY Invesco High Yield Equity Dividend Achievers™…	4.31%	±11%	+28.4%	0.68%	$1.13B	+8.3%	-8.8%	$1.66M

Preferred stock and multi-asset funds

Preferred shares pay a fixed dividend, ranking between a company’s bonds and its common stock. Most are issued by banks and insurers, which shows in how they behave in a financial crisis.

9 funds, with trailing yields from 5.4% (PREF) to 10.78% (PFFA).
Steadiest payments over the last year: PFFA (±0%). Most variable: PFXF (±37%).
On the 10-year 4% rule test from Oct 2016, 0 of 3 ended with more than the $1 million they started with.

Fund	Yield	Swing	Income, 5 yr	Cost	Net assets	5 yr	2022 drop	4% rule test
PFF iShares Preferred & Income Securities ETF	5.68%	±31%	-5.3%	0.45%	$13.10B	-0.2%	-18.5%	$790K
FPE First Trust Preferred Securities & Income ETF	6.78%	±16%	+26.4%	0.83%	$6.32B	+2.1%	-15.5%	$955K
PGX Invesco Preferred ETF	6.86%	±8%	-5.6%	0.5%	$3.73B	-2.3%	-19.4%	$706K
VRP Invesco Variable Rate Preferred ETF	5.88%	±35%	+26.4%	0.5%	$2.89B	+3.9%	-12.0%	too new
PFXF VanEck Preferred Securities ex Financials ETF	6.24%	±37%	+9.3%	0.4%	$2.63B	+2.0%	-20.3%	too new
PFFA Virtus InfraCap U.S. Preferred Stock ETF	10.78%	±0%	+7.4%	2.11%	$2.45B	+4.1%	-20.9%	too new
PFFD Global X U.S. Preferred ETF	6.98%	±0%	-9.1%	0.23%	$2.17B	-1.9%	-19.5%	too new
FPEI First Trust Institutional Preferred Securitie…	6.64%	±7%	+31.2%	0.85%	$1.93B	+3.5%	-12.2%	too new
PREF Principal Spectrum Preferred Secs Active ETF	5.4%	±5%	+19.3%	0.55%	$1.77B	+2.5%	-14.6%	too new

Bond funds

Most bond funds pay monthly, passing on the interest from their bonds. These are the largest; the bond ETF list groups them by the job they do.

The 15 largest of 156 monthly payers, with trailing yields from 3.3% (MUB) to 5.01% (VCIT).
Steadiest payments over the last year: AGG (±2%). Most variable: BNDX (±131%).
On the 10-year 4% rule test from Oct 2016, 0 of 13 ended with more than the $1 million they started with.

Fund	Yield	Swing	Income, 5 yr	Cost	Net assets	5 yr	2022 drop	4% rule test
BND Vanguard Total Bond Market ETF	4.12%	±3%	+59.8%	0.03%	$397.11B	-0.3%	-14.5%	$658K
AGG iShares Core U.S. Aggregate Bond ETF	4.13%	±2%	+89.1%	0.03%	$138.32B	-0.3%	-14.4%	$654K
BNDX Vanguard Total International Bond ETF	4.61%	±131%	+251.6%	0.07%	$122.53B	+0.2%	-13.6%	$670K
SGOV iShares 0-3 Month Treasury Bond ETF	3.65%	±6%	—	0.09%	$105.98B	+3.8%	+0.8%	too new
VCIT Vanguard Intermediate-Term Corporate Bond ETF	5.01%	±3%	+71.6%	0.03%	$72.04B	+0.8%	-17.1%	$767K
BSV Vanguard Short-Term Bond ETF	4.14%	±4%	+203.0%	0.03%	$69.75B	+1.8%	-6.6%	$693K
BIV Vanguard Intermediate-Term Bond ETF	4.46%	±4%	+21.4%	0.03%	$52.45B	-0.1%	-14.8%	$680K
VCSH Vanguard Short-Term Corporate Bond ETF	4.56%	±3%	+152.9%	0.03%	$51.74B	+2.5%	-7.7%	$761K
VTEB Vanguard Tax-Exempt Bond ETF	3.47%	±2%	+81.7%	0.03%	$48.52B	+0.6%	-10.2%	too new
VGIT Vanguard Intermediate-Term Treasury ETF	3.99%	±5%	+80.3%	0.03%	$48.41B	0.0%	-11.2%	$628K
BIL SPDR Bloomberg 1-3 Month T-Bill ETF	3.64%	±11%	+102644.6%	0.14%	$47.08B	+3.7%	+0.6%	$721K
TLT iShares 20+ Year Treasury Bond ETF	4.76%	±4%	+79.1%	0.15%	$47.05B	-8.0%	-29.3%	$432K
MUB iShares National Muni Bond ETF	3.3%	±2%	+57.3%	0.05%	$45.38B	+0.6%	-9.5%	$696K
GOVT iShares U.S. Treasury Bond ETF	3.74%	±7%	+72.9%	0.05%	$43.55B	-0.7%	-12.6%	$602K
IUSB iShares Core Total USD Bond Market ETF	4.31%	±4%	+72.4%	0.06%	$43.00B	+0.1%	-14.7%	$681K

Before you count on the check

Frequency is not return

Any fund can produce a monthly paycheck: you can sell a small slice of shares each month. What matters is the total return and the taxes, not how often the payments arrive.

Bond payouts follow interest rates

Bond fund payouts rose sharply after rates jumped in 2022, which is why many show strong five-year income growth. When rates fall, those payouts fall too.

High payouts can shrink the savings

Option-income and some preferred funds pay a lot, but compare their 5-year total returns with plain stock funds. Income that comes from giving up growth can leave a smaller balance, and smaller payouts later.

Payouts can be cut

Preferred stocks and high-dividend stocks are often issued by banks, utilities and other companies that cut payouts when they get into trouble, usually during a recession.

Turn your savings into a monthly paycheck

ReadyAimRetire builds a month-by-month income plan from all your accounts, Social Security and pensions, and shows how long it lasts, before and after taxes.

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Questions investors ask

Do monthly dividend ETFs pay more than quarterly ones?

No. How often a fund pays doesn’t change how much it pays over a year. A monthly payer splits its income into twelve smaller payments; the yield and the total return are what to compare.

Why do bond ETFs pay monthly?

Bonds pay interest on different schedules. A fund holding hundreds of bonds collects interest throughout the year and passes it on to shareholders every month.

Are monthly payouts taxed differently?

No. Tax depends on the kind of income, not how often it arrives: qualified dividends, bond interest, option premiums and return of capital are each taxed differently. Inside an IRA or 401(k), none of it is taxed until you withdraw.

Can I live on monthly-paying ETFs?

They can cover part of your spending, but chasing the highest monthly yield often means more risk to the savings behind it. Many retirees combine income funds with selling a little from a broad portfolio, and plan around Social Security and other income first.

How we built this list

Which funds: ETFs with at least $1 billion in net assets that paid at least 11 distributions in the 12 months before Oct 27, 2026. Leveraged, inverse and single-stock option funds are left out. Our price data has no distribution history for some large funds (for example BND, AGG and BIL), so they can’t be detected as monthly payers and aren’t shown.
Yield: distributions over the 12 months to Oct 27, 2026, divided by the price, with payments before a share split adjusted.
Swing: the standard deviation of the last 12 months’ payments divided by their average. Funds whose payouts follow inflation (TIPS) or include a large year-end payment swing the most.
Income, 5 yr: the last 12 months of payments per share against the same 12 months five years earlier, in today’s share terms. Prices (CPI-U) rose null% over the same five years.
Returns and 4% rule test: total returns with distributions reinvested, to Oct 27, 2026; the 4% test starts with $1,000,000 in Oct 2016, withdrawing 4% a year in monthly amounts that rise with inflation.

Figures computed Nov 3, 2026. For education only, not a recommendation to buy or sell any fund. Past results do not predict future results.

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