My Favorite ETFs for Long-Term Passive Income
I’m not a “put all your eggs in one basket” kind of mom — especially when it comes to building wealth. If I’ve learned anything on this journey, it’s that real freedom comes from having more than one stream of income (bonus points if they don’t need you to be working around the clock to keep them going).
That’s why I like to keep things simple and split my investments between real estate and the stock market. Real estate gives me rental income and long-term value. But if you’re not quite ready to buy a rental property, there’s a simpler starting point: ETFs. They’re an easy, beginner-friendly way to start earning passive income from the market — no stock-picking or fancy financial degree required.
ETFs (Exchange-Traded Funds) are like bundles of investments — stocks, bonds, or other assets — that you can buy with just one click. They’re beginner-friendly, low-maintenance, and perfect for long-term wealth building.
Here are some of my favorite ETFs if you want steady income and long-term growth — the ones that help my money grow quietly in the background while I’m juggling all the other things life throws at me.
1. SCHD – Schwab U.S. Dividend Equity ETF
This is my go-to for reliable dividend income.
Why I love it: SCHD focuses on high-quality U.S. companies with a strong history of paying dividends. Think blue-chip names that actually send you cash every quarter.
Dividend yield: Around 3.5%–4%
Bonus: It also grows over time — so you’re getting income and appreciation.
Perfect for: Long-term holders who want consistent payouts.
2. JEPI – JPMorgan Equity Premium Income ETF
Want monthly income? Meet JEPI.
Why I love it: JEPI uses a strategy that combines stock investing with covered calls (don’t worry — you don’t have to know what that means). It pays out monthly, which feels like a little payday every few weeks.
Dividend yield: Around 7%–10%
Tradeoff: Lower long-term growth, but amazing if you want cash flow now.
Perfect for: Supplementing income without selling your shares.
3. VYMI – Vanguard International High Dividend Yield ETF
Let’s not forget the rest of the world.
Why I love it: VYMI invests in international companies that pay high dividends. It adds some global diversity to your portfolio — plus, international stocks can offer higher yields than U.S. ones.
Dividend yield: Around 4%–5%
Perfect for: Spreading your income sources beyond U.S. borders.
4. VTI – Vanguard Total Stock Market ETF
This one’s not focused on income, but it’s a classic.
Why I love it: VTI gives you a little piece of every publicly traded company in the U.S. It doesn’t pay high dividends, but it’s a set-it-and-forget-it core holding that grows over time.
Dividend yield: Around 1.5%–2%
Why it’s on this list: Pair this with a dividend ETF for a nice balance of growth + income.
Perfect for: Long-term wealth building with minimal effort.
Final Thoughts: Set It and Let It Grow
Here’s the thing: Passive income from ETFs won’t make you rich overnight. But give it time, consistency, and reinvest your dividends — and you’re building a money machine that doesn’t rely on your time or energy.
Start small. Stay steady. Let your money work harder than you do.
Disclaimer: This post is for informational and educational purposes only and does not constitute financial or investment advice. I’m not a financial advisor, and you should always do your own research or speak with a licensed professional before making any financial decisions. All investments carry risk — make sure any strategy or product aligns with your personal goals and comfort level.
