Passive income in dollars: Discover 6 ETFs with monthly dividend payments

The search for dollar-denominated yields has been growing significantly among Brazilian investors. With the domestic economy facing uncertainties, interest rates remaining high, and exchange rates constantly fluctuating, many are now seeking alternatives to diversify their sources of income and build a continuous flow of earnings in foreign currency. In this scenario, ETFs that pay monthly dividends have emerged as a practical and accessible solution for this demand.

These exchange-traded funds offer a significant advantage: they allow you to receive a recurring amount every month without the need to assemble a complex portfolio of international stocks. Brazilian investors who want to structure part of their income in dollars find ETFs that pay monthly dividends to be an efficient instrument to build wealth more robustly, balanced, and with global exposure.

How Monthly Dividend ETFs Work and Generating Passive Income in Dollars

ETFs that pay monthly dividends are funds that gather a selection of stocks or assets with a proven history of profit distribution. The main attraction is precisely this: the distribution occurs monthly, making these instruments ideal for those seeking predictable and recurring income.

Instead of purchasing multiple American stocks individually — which would be costly and operationally complex — the investor buys shares of a single ETF and automatically gains access to a diversified portfolio with automated payments. This income is usually deposited in dollars into the brokerage account, and can be reinvested or converted according to personal goals.

These funds tend to focus on companies with strong cash flow, resilient sectors such as energy, telecommunications, and real estate, as well as assets that prioritize consistent dividend distribution, such as REITs (US real estate funds). The result is a source of income that continues generating even during periods of market volatility or downturns — a valuable characteristic for long-term wealth building.

Brazilian platforms increasingly facilitate access to these assets. Some brokerages offer direct access to US stock exchanges with growing convenience, enabling local investors to diversify their portfolios safely and efficiently.

Six ETF Alternatives to Build Dollar Passive Income with Monthly Dividends

Below are six of the most popular ETFs paying monthly dividends among global investors who turn their investments into a steady source of dollar income. Each has particular characteristics regarding profitability, composition, management costs, and risk profile, allowing for choices more aligned with long-term financial planning.

1. Global X SuperDividend ETF (SDIV)

For those aiming for continuous dollar passive income with broad international exposure, SDIV represents an interesting alternative. This ETF from Global X focuses on stocks of companies with very high dividend yields worldwide, offering consistent monthly distributions for over a decade and a half.

Launched in 2011, the fund replicates the Solactive Global SuperDividend Index, which selects 100 global stocks with the highest dividends and controlled volatility. Equal weighting of each stock in the portfolio prevents excessive concentration in specific businesses or regions.

Key Data (December/2025)

SDIV’s portfolio predominantly includes stocks from the financial sector (approximately 28%), energy, real estate with REITs (13%), as well as utilities and consumer discretionary. Geographic diversification is a key differentiator, with significant presence in the United States (25%), Brazil (15%), Hong Kong (12%), and various emerging markets.

Advantages

• Passive dollar income with monthly distributions, providing cash flow predictability
• Broad global diversification, reducing dependence on a single economy
• Focused selection of high-yield companies

Considerations

• Companies with very high dividends may have weak fundamentals, risking dividend cuts or share devaluation
• Significant exposure to emerging markets and cyclical sectors like energy and finance
• Higher management fee compared to conventional passive ETFs

2. Global X SuperDividend U.S. ETF (DIV)

DIV is one of the leading US ETFs for those seeking passive dollar income with monthly dividend distributions, dedicated exclusively to US securities. Its strategic approach balances high yield with reduced volatility, suitable for investors seeking stability without compromising cash flow.

The fund replicates the Indxx SuperDividend U.S. Low Volatility Index, which identifies 50 US stocks with the highest dividend yields and low historical volatility compared to the S&P 500. This combination aims to ensure stable income even in turbulent times, favoring defensive sectors.

Key Data (December/2025)

DIV’s portfolio is notably defensive, with strong holdings in utilities (around 21%), REITs (about 19%), energy (~19%), basic consumer (~10%), communications, and healthcare. This profile results in low exposure to high-volatility sectors like technology or fast-growing retail.

Positives

• Monthly dollar distributions with consistent yield above 7% annually
• Exposure to traditionally resilient sectors during crises
• Focus on low volatility, smoothing losses in negative cycles

Risks

• Sector concentration risk, affecting performance during unfavorable periods
• Limitation to only 50 US stocks may miss growth opportunities
• “Dividend trap” risk, where high-yield companies face financial deterioration

3. Invesco S&P 500 High Dividend Low Volatility ETF (SPHD)

For those seeking dollar passive income with a more stable portfolio, SPHD offers an interesting proposition. This ETF combines S&P 500 stocks with high dividends and low historical volatility, balancing income generation with protection against sharp swings.

Created in October 2012, the fund replicates the S&P 500 Low Volatility High Dividend Index, selecting 50 S&P 500 companies with the highest dividend yields and lowest price fluctuations. Sector exposure is capped at 25%, promoting balanced diversification.

Key Data (November/2025)

SPHD’s composition focuses on traditionally defensive sectors: REITs (about 23%), basic consumer (~20%), utilities (~20%), with representation also in healthcare and telecommunications, while high-growth sectors like technology are underrepresented.

The fund uses a smart beta methodology, rebalanced semiannually (January and July) to maintain a balance between high dividends and low volatility. Frequent holdings include Pfizer, Verizon, Altria, Consolidated Edison, companies with mature, predictable cash flows.

Advantages

• Balance of stability and dollar passive income, with monthly distributions
• Exposure to established defensive blue chips with solid dividend history
• Semiannual rebalancing keeps the portfolio updated and reduces concentration risk

Limitations

• Moderate yield (~3.4%), lower than ETFs focused solely on high yield
• Lack of growth stocks limits appreciation potential
• Sector concentration: half the fund in three sectors may pose risks

4. iShares Preferred and Income Securities ETF (PFF)

Among ETFs providing dollar passive income with monthly distributions, PFF stands out for investing in a specific class: preferred stocks. Launched in 2007 by iShares (BlackRock), it has become a benchmark for those seeking stable, regular payments with a more defensive profile than regular equity funds.

Preferred stocks occupy an intermediate position between stocks and debt securities: they offer fixed, regular dividends usually paid monthly, with lower volatility than common stocks, though sensitive to interest rate changes.

Key Data (November/2025)

PFF tracks the ICE Exchange-Listed Preferred & Hybrid Securities Index, comprising over 450 assets — predominantly preferred stocks issued by major US financial institutions. The most representative sectors include finance (banks and insurers, +60%), utilities, energy, and telecom. The strong presence of JPMorgan, Bank of America, and Wells Fargo reflects their frequent issuance of preferred shares for efficient capital raising.

The strategy is passive with periodic rebalancing and broad diversification. Dividends are paid monthly with relative stability.

Benefits

• Stable monthly income with yield above 6% annually
• Lower price volatility than common stocks, especially in uncertain times
• High diversification: over 400 issues dilute individual risk

Disadvantages

• Sensitive to interest rate changes: fixed dividends reduce market value when US rates rise
• Limited capital appreciation potential: focused on dollar income, not growth
• Sector concentration in finance may impact the portfolio during banking crises

5. Global X NASDAQ-100 Covered Call ETF (QYLD)

For those seeking regular dollar passive income with above-average returns, QYLD is among the most traded options in the market. This ETF implements a covered call strategy on the Nasdaq-100, providing high monthly distributions in exchange for capping appreciation potential.

Key Data (December/2025)

QYLD follows the Cboe Nasdaq-100 BuyWrite Index (BXNT), executing a “covered call” strategy monthly: buying all Nasdaq-100 stocks and simultaneously selling call options on the index. These premiums are fully distributed to shareholders, turning market volatility into a continuous cash flow.

Since it replicates the Nasdaq-100, QYLD’s holdings are predominantly in information technology (~56%), communications (~15%), and consumer discretionary (~13%). Major positions include Apple, Microsoft, NVIDIA, Amazon, and Meta, all highly liquid leaders.

Attractions

• High monthly yield in dollars: dividend yield over 13% in the last 12 months
• Automated management of complex strategy, saving investors from operating derivatives
• Lower volatility in sideways or declining markets: premiums help protect capital

Caveats

• Limited capital gains: during strong Nasdaq-100 rallies, it does not capture the full upside
• Variable yield with volatility: premiums decrease in calm periods
• Long-term capital erosion risk by exchanging appreciation for income

6. JPMorgan Equity Premium Income ETF (JEPI)

Among the most popular ETFs for dollar passive income with monthly dividends, JEPI stands out as an alternative with high yield and lower risk. Launched in 2020 by JPMorgan, it attracted billions in a few years due to its innovative approach of combining quality stocks with derivatives that generate continuous revenue.

Key Data (October/2025)

JEPI combines two main strategies to generate income with less volatility: active selection of S&P 500 stocks (about 100 to 150 value and low-volatility stocks, prioritizing defensive sectors like Healthcare, Consumer Staples, and Industrials), and using structured instruments that replicate selling options on the S&P 500, distributing premiums monthly.

Unlike ETFs concentrated in technology, JEPI favors less volatile sectors. Major holdings include Coca-Cola, AbbVie, UPS, PepsiCo, and Progressive, contributing to a more stable performance.

Advantages

• High income with lower risk: yield around 8% annually, ideal for dollar passive income with reduced volatility
• High liquidity and robustness: over US$ 40 billion under management, the largest dividend ETF globally
• Possible tax advantage: part of the income classified as long-term capital gains

Disadvantages

• Limited participation in strong rallies: sacrifices potential gains in bull markets
• Active management complexity: risk of underperformance if asset selection fails
• Slightly higher management fee than traditional passive ETFs

How Brazilian Investors Can Access ETFs That Pay Monthly Dividends

For those wanting to receive dollar passive income, investing in US ETFs that pay monthly dividends is one of the most direct and accessible options. Fortunately, even residents in Brazil can invest in these assets with simple steps, whether by opening an international account or using local alternatives like BDRs.

Opening accounts with international brokerages

The most straightforward way is to open an account with international brokerages that provide access to US exchanges (NYSE and Nasdaq). Popular options among Brazilians include Passfolio, Nomad, Interactive Brokers, Stake, Avenue, Inter Securities (Banco Inter), and BTG Pactual.

These platforms allow investors to open dollar accounts, transfer funds via international wire, and buy US ETFs directly. Dividends are automatically paid in dollars every month, and can be reinvested.

The advantage is receiving net dividends in strong currency, benefiting those who want to diversify income, protect wealth, and build dollarized passive income over the long term.

Investing via BDRs on B3

Another alternative is BDRs of ETFs (Brazilian Depositary Receipts), certificates representing foreign assets. While most still refer to individual stocks, some ETF options are available such as IVVB11 (tracking the S&P 500) or BDRs of ETFs focused on technology and gold.

The current challenge is the absence of BDRs specialized in ETFs that pay monthly dividends like those listed in the US. Additionally, dividends via BDRs face higher taxation and delays. For those focused on dollar passive income, this route may not be the most efficient.

Final Considerations

ETFs that pay monthly dividends are a powerful tool for building dollar passive income. Each presented option has distinct risk, yield, and composition characteristics, allowing Brazilian investors to choose according to their profile and financial goals. Diversification across different ETFs, platforms, and strategies can enhance long-term results, provided it aligns with a clear plan and continuous investment discipline.