6 ETFs That Generate Passive Income in Dollars: A Practical Guide for Brazilians

The growing demand for passive income in dollars among Brazilian investors reflects a clear economic reality: faced with high internal interest rates, constant exchange rate volatility, and macroeconomic uncertainty scenarios, diversifying income streams in strong currency has become an essential strategy to protect wealth. In this context, monthly dividend ETFs have emerged as a practical and accessible solution for those wishing to receive recurring cash flow without building an individual portfolio of American stocks.

The main advantage is simple: these exchange-traded funds allow exposure to the North American market at reduced costs, automate monthly distributions in dollars, and offer instant diversification. For the Brazilian investor interested in passively building global wealth, understanding how these alternatives work is the starting point.

Why Monthly Dividend ETFs Are Relevant for Dollar Income

A monthly dividend ETF concentrates on stocks and assets with a consistent profit distribution history. Instead of buying dozens of individual American securities, the investor acquires shares of a single fund, gaining automatic access to a diversified portfolio with monthly payments.

These distributions are credited in dollars to the brokerage account and can be reinvested or converted as needed. Most ETFs in this category include companies with robust cash flow, defensive sectors (energy, telecommunications, real estate), or assets that prioritize profit distribution, such as American REITs. The result is a yield that continues arriving even during periods of market volatility or downturns — a valuable feature for those building long-term wealth.

Currently, investment platforms provide easy access to these assets. Some brokerages allow direct trading on American exchanges; others expand the range with derivative instruments that increase operational possibilities.

6 American Monthly Dividend ETFs: Detailed Comparison

1. Global X NASDAQ-100 Covered Call ETF (QYLD) — Highest Yield

For those seeking passive dollar income with accelerated returns, QYLD stands out. It implements a covered call strategy on the Nasdaq-100, generating high monthly dividends in exchange for capping gains during strong rallies.

Key Data (Dec/2025):

• Price: ~US$ 17.47
• Assets Under Management: US$ 8.09 billion
• Annual fee: 0.60%
• Dividend yield (12m): 13.17%
• Average volume: ~7 million shares
• Launch date: 12/11/2013

How it works: Buys all Nasdaq-100 stocks and simultaneously sells call options (calls). The monthly premiums are fully distributed to shareholders, turning volatility into predictable cash flow.

Composition: Highly concentrated in technology (~56%), communications (~15%), and discretionary consumption (~13%). Top holdings: Apple, Microsoft, NVIDIA, Amazon, Meta.

Advantages:

• High monthly yield: over 13% annually
• Automatic options management: no manual operation required
• Protection in sideways markets: premiums help cushion declines

Risks:

• Limited gains in strong Nasdaq rallies
• Yields vary with market volatility
• Possible capital erosion over the long term

2. JPMorgan Equity Premium Income ETF (JEPI) — Risk-Return Balance

JEPI combines quality stocks with revenue-generating derivatives, offering passive dollar income with lower volatility than fully equity-based funds.

Key Data (Oct/2025):

• Price: ~US$ 57.46
• Assets Under Management: US$ 40 billion
• Annual fee: 0.35%
• Dividend yield (12m): ~8.4%
• Average volume: ~5 million shares
• Launch date: 05/20/2020

Strategy: Builds a portfolio of 100-150 S&P 500 stocks (sectors like Healthcare, Consumer Staples, Industrials), and uses structured products (ELNs) that replicate call selling. Beta of only 0.56 relative to the S&P 500.

Composition: Prefers companies with historically lower volatility. Top holdings: Coca-Cola, AbbVie, UPS, PepsiCo, Progressive.

Advantages:

• Elevated income (~8% per year) with less volatility exposure
• Greater liquidity: US$ 40 billion under management (largest dividend ETF in the world)
• Possible tax advantages in the US

Risks:

• Limited participation in S&P 500 rallies
• Active management complexity with structured products
• Higher fee than most passive ETFs

3. Global X SuperDividend ETF (SDIV) — Global Diversification

SDIV offers passive dollar income with diversified international exposure, focused on high-yield stocks worldwide.

Key Data (Dec/2025):

• Price: ~US$ 24.15
• Assets Under Management: US$ 1.06 billion
• Annual fee: 0.58%
• Dividend yield (12m): 9.74%
• Average volume: ~337 thousand shares
• Launch date: 06/08/2011

Strategy: Replicates the Solactive Global SuperDividend index, selecting 100 global stocks with the highest dividends and moderate volatility. Equal weights prevent excessive concentration.

Sector Composition: Financial (~28%), Energy (~20%), Real Estate/REITs (~13%), Utilities and Discretionary.

Geographic Diversification: US (~25%), Brazil (~15%), Hong Kong (~12%), Canada, UK, and emerging markets.

Advantages:

• Predictable monthly income in dollars
• Multiple geographic and sector exposure
• Focus on high-yield companies

Risks:

• High volatility: high-yield companies may have weak fundamentals
• Strong exposure to emerging markets and cyclical sectors
• Higher management fee

4. Invesco S&P 500 High Dividend Low Volatility ETF (SPHD) — Enhanced Stability

For investors balancing dollar passive income with stability, SPHD selects S&P 500 stocks with high dividends and low historical volatility.

Key Data (Nov/2025):

• Price: ~US$ 48.65
• Assets Under Management: US$ 3.08 billion
• Annual fee: 0.30%
• Dividend yield (12m): ~3.4%
• Average volume: ~700 thousand shares
• Launch date: 10/18/2012

Strategy: Replicates the S&P 500 Low Volatility High Dividend index, selecting 50 companies with highest yields and lowest fluctuations. Sector exposure limited to 25% per sector. Rebalanced semiannually (January and July).

Sector Composition: Real Estate/REITs (~23%), Basic Consumption (~20%), Utilities (~20%), Healthcare and Telecom. Technology is underrepresented.

Top holdings: Pfizer, Verizon, Altria, Consolidated Edison.

Advantages:

• Stability with income: monthly dividends + low volatility
• Exposure to established defensive blue chips
• Regular rebalancing keeps portfolio current

Risks:

• Moderate yield (~3.4%) compared to other dividend ETFs
• Low appreciation potential
• Sector concentration in three areas (half the fund)

5. Global X SuperDividend U.S. ETF (DIV) — Domestic Defensive Focus

DIV concentrates passive dollar income exclusively in American stocks, with a strategic approach to balance high yield with reduced volatility.

Key Data (Dec/2025):

• Price: ~US$ 17.79
• Assets Under Management: US$ 624 million
• Annual fee: 0.45%
• Dividend yield (12m): 7.30%
• Average volume: ~240 thousand shares
• Launch date: 03/11/2013

Strategy: Replicates the Indxx SuperDividend U.S. Low Volatility index, selecting 50 US stocks with the highest yields that also show low historical volatility relative to the S&P 500. Aim: steady income even in turbulent scenarios.

Sector Composition: Utilities (~21%), Real Estate (~19%), Energy (~19%), Basic Consumption (~10%), Communications and Healthcare.

Advantages:

• Monthly dividends in dollars: yields consistently above 7% annually
• Exposure to defensive sectors during crises
• Focused on low volatility

Risks:

• High sector concentration
• Limited to only 50 US stocks
• Dividend trap risks (yield traps)

6. iShares Preferred and Income Securities ETF (PFF) — Preferred Shares

PFF invests in a specific asset class: preferred shares, which occupy an intermediate position between stocks and bonds, offering passive dollar income with a defensive profile.

Key Data (Nov/2025):

• Price: ~US$ 30.95
• Assets Under Management: US$ 14.11 billion
• Annual fee: 0.45%
• Dividend yield (12m): ~6.55%
• Average volume: ~3.5 million shares
• Launch date: 03/26/2007

Strategy: Replicates the ICE Exchange-Listed Preferred & Hybrid Securities index, comprising over 450 assets — mainly preferred shares of major US financial institutions.

Sector Composition: Financial (banks and insurance): +60%. Utilities and Energy also represented. Issuers include JPMorgan, Bank of America, Wells Fargo.

Features: Regular fixed dividends, usually monthly. Lower volatility than common stocks but sensitive to interest rate changes.

Advantages:

• Stable monthly income: yield above 6% annually
• Less price fluctuation than ordinary stocks
• Wide diversification: over 400 issues

Risks:

• Sensitive to US interest rate hikes
• Limited appreciation potential
• Sector concentration in finance