Earn in Dollars with ETFs: Which Monthly Dividend Fund to Choose?

Investors in Brazil are increasingly aware of an inevitable reality: in a scenario of high domestic interest rates, persistent inflation, and volatile exchange rates, concentrating resources solely in reais has become risky. The solution gaining popularity? Seeking steady returns in hard currency through assets that regularly distribute dividends.

This is where a specific category of instruments comes in: ETFs that pay monthly dividends. Unlike traditional investments in isolated stocks, these exchange-traded funds offer a simple, diversified, and accessible way to build a predictable cash flow in dollars, without the complexity of assembling an international portfolio on your own.

In this guide, we will explore six of the most sought-after funds globally, understand how they work, and guide you on the best ways to get started — whether through international brokerages, BDRs, or derivatives platforms.

Understanding Monthly Dividend ETFs: The Basics

Before analyzing specific options, it’s essential to understand the mechanism behind these assets.

A monthly dividend ETF is a fund that pools a curated selection of stocks or bonds with a strong track record of profit distribution. Instead of the investor purchasing multiple individual U.S. stocks — a costly and labor-intensive operation — they buy shares of a single fund and gain automatic exposure to a balanced portfolio.

Most of these funds focus on sectors that generate stable cash flows: energy, telecommunications, utilities (public services), and U.S. REITs (Real Estate Investment Trusts). Some, however, adopt sophisticated derivative strategies — such as selling options (covered calls) — to amplify yields.

The income is deposited monthly in the brokerage account in dollars, which can be reinvested or converted to reais according to each individual’s strategy. For Brazilian investors interested in dollarizing part of their assets while building a recurring income, this approach offers practicality and security that isolated investments rarely provide.

The 6 Main ETFs That Pay Monthly Dividends

SDIV — Global X SuperDividend ETF: Global Exposure with High Yield

If your goal is to receive passive income in dollars with access to companies worldwide, SDIV deserves attention.

Created in 2011, this Global X fund replicates an index that selects 100 global stocks with the highest dividend yields, maintaining equal weight for each position and avoiding excessive concentration in specific countries or sectors.

Key data (December/2025):

• Price: ~US$ 24.15
• Net assets: US$ 1.06 billion
• Annual fee: 0.58%
• Dividend yield (12m): 9.74%

Composition: The portfolio is distributed among financials (~28%), energy (~19%), real estate (~13%), and other sectors. Geographically, the U.S. (25%), Brazil (15%), and Hong Kong (12%) are prominent.

Strengths: Predictable monthly income; genuinely global diversification; focus on companies with a solid dividend history.

Risks: Companies with very high dividends may face cuts in the future; heavy exposure to emerging markets and cyclical sectors; higher-than-average management fee.

DIV — Global X SuperDividend U.S. ETF: U.S. Focus with Reduced Volatility

Complementing SDIV, DIV offers an alternative approach: exclusive selection of high-yield U.S. stocks, filtering only those with low historical volatility relative to the S&P 500.

The result is a less turbulent fund, ideal for investors seeking dollar passive income without sharp fluctuations.

Key data (December/2025):

• Price: ~US$ 17.79
• Net assets: US$ 624 million
• Annual fee: 0.45%
• Dividend yield (12m): 7.30%

Sector profile: Very defensive. Utilities ~21%, REITs ~19%, energy ~19%, basic consumption ~10%. Technology and growth retail are practically absent.

Advantages: Consistent dividends above 7% annually; sectors resilient in crises; potential to cushion losses.

Disadvantages: Concentration in only three main sectors; limited to 50 U.S. stocks; risk of “dividend traps” if companies deteriorate and cut dividends.

SPHD — Invesco S&P 500 High Dividend Low Volatility ETF: Balance Between Income and Stability

SPHD offers a balanced proposition: S&P 500 stocks combining high yield with moderate fluctuations.

Launched in 2012, the fund rebalances its composition semiannually (January and July) to maintain this balance. Major holdings include Pfizer, Verizon, Altria, and Consolidated Edison — mature companies with predictable cash flows.

Key data (November/2025):

• Price: ~US$ 48.65
• Net assets: US$ 3.08 billion
• Annual fee: 0.30%
• Dividend yield (12m): ~3.4% per year

Sector composition: REITs (~23%), basic consumption (~20%), utilities (~20%), with health and telecom also represented.

Benefits: Lower relative risk; attractive management fee (0.30%); periodic rebalancing prevents volatile position buildup.

Limitations: Moderate yield compared to SDIV or DIV; absence of growth stocks reduces appreciation potential in bullish markets; half of the portfolio is exposed to only three sectors.

PFF — iShares Preferred and Income Securities ETF: Income via Preferred Stocks

Unlike the previous ones, PFF invests in preferred stocks — a hybrid between common stocks and debt securities.

These securities pay fixed dividends (frequently monthly), have lower volatility than common stocks, and occupy a privileged position in case of corporate insolvency. PFF aggregates over 450 issues, mostly from American financial institutions.

Key data (November/2025):

• Price: ~US$ 30.95
• Net assets: US$ 14.11 billion
• Annual fee: 0.45%
• Dividend yield (12m): ~6.55%
• Daily volume: ~3.5 million shares

Market dynamics: Financial sector (+60%), utilities, energy, and telecom. Names like JPMorgan, Bank of America, and Wells Fargo form the core.

Pros: High and predictable income; less wild behavior than common stocks; substantial diversification reduces individual credit risk.

Concerns: Sensitivity to interest rate changes (—rising rates tend to lower market value); limited capital appreciation potential; dependence on the financial sector for returns.

QYLD — Global X NASDAQ-100 Covered Call ETF: Maximum Income via Options Strategy

For investors willing to trade potential appreciation for exceptional income, QYLD offers an aggressive proposition.

This fund implements a monthly “covered call” strategy: buying all NASDAQ-100 stocks and simultaneously selling call options on them. The premiums received from these options are fully distributed to shareholders.

Key data (December/2025):

• Price: US$ 17.47
• Net assets: US$ 8.09 billion
• Annual fee: 0.60%
• Dividend yield (12m): 13.17%
• Daily volume: ~7 million shares

Exposure: Mainly technology (56%), communications (15%), discretionary consumption (13%). Top holdings include Apple, Microsoft, NVIDIA, Amazon, and Meta.

Attractive features: Highest monthly yield among those listed here (~13%); strategy executed automatically by the fund; relative protection in sideways or declining markets.

Trade-offs: Limited capital gain potential — when the Nasdaq-100 rises sharply, the fund lags; yield fluctuates with market volatility; possible long-term share value erosion.

JEPI — JPMorgan Equity Premium Income ETF: Quality with Active Yield

Launched in 2020, JEPI quickly became one of the largest active dividend ETFs globally, managing over US$ 40 billion.

The fund’s hybrid strategy combines active selection of 100-150 defensive S&P 500 stocks (Coca-Cola, AbbVie, UPS, PepsiCo) with structured derivatives (ELNs) that replicate selling calls on the index, generating monthly premiums.

Key data (October/2025):

• Price: ~US$ 57.46
• Net assets: US$ 40 billion
• Annual fee: 0.35%
• Dividend yield (12m): ~8.4%
• Daily volume: ~5 million shares

Differential: Beta of only 0.56 relative to the S&P 500, indicating lower correlation with broad market movements.

Benefits: Substantial income (8.4%) with less risk than pure stocks; very high liquidity and operational solidity; possible tax advantage (part of earnings classified as long-term capital gains).

Caveats: Limited participation in strong market rallies; technical complexity in managing ELNs; slightly higher management fee compared to passive funds.

Quick Comparison: Which to Choose?

How Can Brazilians Invest in Monthly Dividend ETFs?

Fortunately, living in Brazil does not prevent access to these assets. There are at least three viable paths:

1. International Brokerages

The most direct option is opening an account with platforms like Passfolio, Nomad, Interactive Brokers, Stake, Avenue, Inter Securities, or BTG Pactual. They allow international wire transfers, automatic currency exchange, and direct purchase of U.S. ETFs on NYSE and Nasdaq.

Dividends are credited monthly in dollars to your account — which can be reinvested or converted to reais according to your strategy.

2. BDRs of ETFs (Via B3)

Some options like IVVB11 (replicates the S&P 500) are available on B3 as Brazilian Depositary Receipts. However, the universe of ETF BDRs is limited, and currently, there are no BDRs specifically replicating the ETFs that pay monthly dividends discussed here.

Additionally, dividends via BDRs may face heavier taxation and longer distribution times.

3. CFDs on Derivatives Platforms

A more active alternative: trading CFDs (Contracts for Difference) of international ETFs. Allows profiting from both rises and falls, with leverage — a feature that amplifies gains (and risks). This strategy complements passive investment in real ETFs well.

Conclusion: Building Your Dollar Income

ETFs that pay monthly dividends are a bridge between the safety of diversified investing and the practicality of recurring income in hard currency. Each of the six funds presented caters to a different profile:

• Seeking maximum global diversification? SDIV.
• Preferring stability in U.S. stocks? DIV or SPHD.
• Interested in defensive preferred stocks? PFF.
• Willing to sacrifice appreciation for extreme income? QYLD.
• Looking for a balance between income and security? JEPI.

The next step is to choose which international broker opens your account and start with a modest initial investment, allowing you to see firsthand how dividends arrive, how often, and how this fits into your long-term financial planning.