Earn Dollars Every Month: A Guide to ETFs with Monthly Dividends for Brazilian Investors

In recent years, there has been a significant increase in the interest of Brazilian investors in alternatives that generate income in foreign currency. The combination of domestic economic instability, high interest rates, and volatile exchange rates has made seeking dollar-based income more attractive than ever. In this context, exchange-traded funds (ETFs) that distribute gains monthly have emerged as a practical and democratic solution.

Unlike building an individual portfolio of American stocks—which would require substantial capital and technical knowledge—these ETFs offer instant diversification, low operational costs, and fully automated payments. For Brazilian investors aiming to build a monthly dollar income stream without complications, understanding how these funds work is the first step toward a more robust and global wealth strategy.

How Monthly Dividend ETFs Work: The Income Generation Mechanism

A monthly dividend ETF is essentially a fund that pools stocks or assets with a solid track record of profit distribution. The ingenuity of this structure lies in its simplicity: instead of researching and buying dozens of individual stocks, you acquire shares of a single fund that already handles curation and rebalancing.

These funds focus on companies with strong cash flow, defensive sectors (energy, telecommunications, infrastructure), or specialized instruments like REITs—American real estate investment trusts that distribute nearly all their revenue to investors. The result is an income that continues arriving every month, regardless of market volatility or temporary declines.

Dividend money is deposited into the brokerage account in dollars, allowing the investor to reinvest, hold in cash, or convert to reais according to their financial plan. This flexibility is especially valuable for those building a long-term strategy, as gains can be immediately reapplied to enhance the power of compound interest.

An important note: investors seeking even greater geographic diversification and exposure to commodities—such as oil—also find alternatives in specialized ETFs in this segment, expanding portfolio composition possibilities.

The Main Monthly Dividend ETFs: Detailed Analysis of 6 Products

1. JPMorgan Equity Premium Income ETF (JEPI)

JEPI is currently one of the most popular funds for those seeking dollar income without sacrificing stability. Launched in 2020, it quickly attracted billions of dollars by offering a balanced proposition: combines quality stocks with derivatives strategies that generate recurring cash flow.

Key numbers (out/2025):

• Price: ~US$ 57.46
• Assets under management: US$ 40 billion
• Annual fee: 0.35%
• Annual yield (12 months): ~8.4%
• Distribution frequency: Monthly in dollars
• Average daily volume: ~5 million shares

The fund employs a hybrid approach: assembles a portfolio of 100 to 150 S&P 500 stocks focused on value and low volatility, then enhances income generation through structured instruments that replicate option selling. Names like Coca-Cola, AbbVie, and PepsiCo are among its main assets, reflecting a clearly defensive bias.

Main advantages:

• Robust monthly return (~8% per year) with moderate risk
• Beta of only 0.56 relative to the S&P 500, reducing exposure to sharp swings
• Largest active dividend ETF in the world—liquidity and stability assured
• Possible tax benefits for certain international investors

Points to watch:

• Limited capital gains in market uptrends
• Active management complexity requires ongoing technical expertise
• Slightly higher management fee than average passive funds

2. Global X SuperDividend ETF (SDIV)

Those seeking international exposure and willing to accept higher volatility for higher yield find SDIV an attractive alternative. Since 2011, the fund replicates an index selecting 100 global stocks with the highest relative dividends, distributing gains monthly.

Key numbers (dez/2025):

• Price: ~US$ 24.15
• Assets under management: US$ 1.06 billion
• Annual fee: 0.58%
• Annual yield (12 months): 9.74%
• Distribution frequency: Monthly in dollars
• Average daily volume: ~337,000 shares

The portfolio is spread across sectors such as Financial (~28%), Energy (~24%), and Real Estate (~13%), with significant presence in emerging markets: Brazil (~15%), Hong Kong (~12%), and other developing markets.

Main advantages:

• International passive income with yield over 9%
• Geographic diversification reduces dependence on a single economy
• Exposure to high-yield dividend companies

Points to watch:

• Companies with very high dividends often face fundamental risks
• Heavy exposure to cyclical sectors (energy, financial) amplifies fluctuations
• Elevated management fee compared to traditional passive funds

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

Unlike SDIV, DIV is exclusively focused on the U.S. market, aiming to balance high yield with controlled volatility. Selecting 50 U.S. stocks with the highest dividends and low volatility history, it functions as a more defensive alternative.

Key numbers (dez/2025):

• Price: ~US$ 17.79
• Assets under management: US$ 624 million
• Annual fee: 0.45%
• Annual yield (12 months): 7.30%
• Distribution frequency: Monthly in dollars
• Average daily volume: ~240,000 shares

The portfolio concentrates on defensive sectors: Utilities (~21%), Real Estate (~19%), Energy (~19%), and Basic Consumption (~10%). This composition makes it less exposed to technology or fast-growing retail.

Main advantages:

• Consistent monthly dividends above 7% per year
• Exposure to historically resilient sectors during crises
• Low volatility focus smooths losses in downturns

Points to watch:

• High sector concentration may impact performance in unfavorable scenarios
• Limited to 50 U.S. stocks—misses international opportunities
• Risk of “dividend traps” when companies deteriorate fundamentals and cut payouts

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

SPHD embodies the “smart beta” approach: selects 50 S&P 500 companies with the highest dividends and lowest historical price fluctuations, rebalancing semiannually to maintain balance.

Key numbers (nov/2025):

• Price: ~US$ 48.65
• Assets under management: US$ 3.08 billion
• Annual fee: 0.30%
• Annual yield (12 months): ~3.4%
• Distribution frequency: Monthly in dollars
• Average daily volume: ~700,000 shares

Real estate (~23%), Basic Consumption (~20%), and Utilities (~20%) form the defensive core of the fund. Companies like Pfizer, Verizon, and Altria are typical top holdings.

Main advantages:

• Stability with recurring income ideal for predictable cash flow
• Exposure to blue-chip defensive stocks with reliable history
• Semiannual rebalancing prevents concentration in unstable assets

Points to watch:

• Moderate yield (~3.4%) lower than funds focused solely on high yield
• Lack of growth stocks limits appreciation in bull markets
• About half the portfolio is concentrated in only three sectors

5. iShares Preferred and Income Securities ETF (PFF)

PFF occupies a specific niche: invests in preferred shares, a class positioned between stocks and debt securities. They pay fixed dividends, usually monthly, with reduced volatility.

Key numbers (nov/2025):

• Price: ~US$ 30.95
• Assets under management: US$ 14.11 billion
• Annual fee: 0.45%
• Annual yield (12 months): ~6.55%
• Distribution frequency: Monthly in dollars
• Average daily volume: ~3.5 million shares

Houses over 450 issues, mostly from the financial sector (60%)—banks like JPMorgan and Bank of America issue preferred shares to efficiently raise capital.

Main advantages:

• Stable monthly income above 6% per year
• Lower volatility than common stocks, especially in economic uncertainty
• Very high diversification dilutes individual credit risk

Points to watch:

• Sensitive to U.S. interest rate hike cycles—when new issues offer higher returns, market value declines
• Low growth potential—focus is on income, not appreciation
• Sector concentration in finance exposes to sector-specific credit risks

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

QYLD implements a sophisticated strategy: buys all Nasdaq-100 stocks and simultaneously sells call options on the index. The premiums are fully distributed to shareholders monthly.

Key numbers (dez/2025):

• Price: US$ 17.47
• Assets under management: US$ 8.09 billion
• Annual fee: 0.60%
• Annual yield (12 months): 13.17%
• Distribution frequency: Monthly in dollars
• Average daily volume: ~7 million shares

Exposure is concentrated in Technology (~56%), Communications (~15%), and Discretionary Consumption (~13%). Apple, Microsoft, NVIDIA, and Amazon dominate the top positions.

Main advantages:

• Extremely high monthly return (above 13% per year)
• Automatic management of options strategy without manual investor effort
• Greater protection in sideways or declining markets—premiums offset losses

Points to watch:

• Limited capital appreciation—in strong Nasdaq rallies, the fund lags
• Variable yield depending on market volatility
• Long-term capital erosion risk when trading appreciation for pure income

How to Invest in Monthly Dividend ETFs: Practical Alternatives

( International Brokerage Accounts

The most direct way is to open an account with brokerages that provide access to U.S. stock exchanges )NYSE and Nasdaq###. Popular platforms among Brazilians include Interactive Brokers, Stake, Avenue, Nomad, and BTG Pactual. After transferring funds via international transfer, you can buy ETFs like JEPI, SPHD, or SDIV. Dividends are automatically credited in dollars to the account and can be reinvested or converted.

( BDRs of ETFs on B3

Another alternative is Brazilian depositary receipts (BDRs) that represent foreign ETFs. Funds like IVVB11 )which replicates the S&P 500### are already available on the Brazilian stock exchange. The current challenge is that there are no specialized BDRs for monthly dividend ETFs. Additionally, taxation may be less favorable, and distribution delays are longer.