Top Exchange-Traded Funds I Eagerly Anticipate Boosting in My Retirement Portfolio This September

Top Two ETFs I Eagerly Anticipate Increasing Investments in within My Retirement Portfolio this September

In the world of investment, finding a balance between stability and growth can be a challenging task. However, two Exchange-Traded Funds (ETFs) — the Schwab U.S. Dividend Equity ETF (SCHD) and the JPMorgan Nasdaq Equity Premium Income ETF — might just make that task a little easier.

Let's start with the Schwab U.S. Dividend Equity ETF. This ETF, which tracks the Dow Jones U.S. Dividend 100 Index, offers a lucrative and growing income stream to investors. With an average dividend yield approaching 4%, it provides a steady income for those seeking a reliable return. The ETF's top holding, Chevron, has increased its dividend for an impressive 38 straight years, a testament to its commitment to shareholders.

The SCHD screens companies based on several dividend quality characteristics, including yield and five-year payment growth record. Other top holdings include AbbVie Inc, Altria Group Inc, PepsiCo Inc, and Merck & Co Inc, among others. Many of these companies are recognised as dividend aristocrats, having long histories of dividend increases, typically ranging from 25 to over 50 years.

The companies in the Schwab U.S. Dividend Equity ETF have increased their dividend payments at a rate of more than 8% annually over the past five years. This growth potential, combined with the steady income, makes the SCHD a strong total return potential for investors seeking a balance between stability and growth.

Now, let's shift our focus to the JPMorgan Nasdaq Equity Premium Income ETF. This ETF's equity portfolio provides investors with upside to the growth of the Nasdaq-100, while its options writing strategy can be very lucrative and helps mute some market volatility. Since its inception in 2022, the ETF has delivered an average annual total return of 14.9%. Over the past 12 months, it has generated an income yield of more than 11%.

The ETF's managers construct an equity portfolio based primarily on companies in the Nasdaq-100 index using a data science approach to fundamental research. In addition to this, the ETF also writes out-of-the-money call options on the Nasdaq-100 index to generate income.

When combined, the Schwab U.S. Dividend Equity ETF and the JPMorgan Nasdaq Equity Premium Income ETF offer both stability and upside, potentially enhancing chances of achieving a financially secure retirement. The dual mandate of the JPMorgan Nasdaq Equity Premium Income ETF to provide a monthly income stream and offer upside exposure to the Nasdaq-100 index with less volatility complements the steady income and growth potential of the Schwab U.S. Dividend Equity ETF.

In conclusion, the Schwab U.S. Dividend Equity ETF and the JPMorgan Nasdaq Equity Premium Income ETF present a compelling case for investors seeking a balanced approach to investing. With their focus on both stability and growth, these ETFs could be a valuable addition to any investment portfolio.