Monthly dividends in dollars: An analysis of the 6 most profitable ETFs for Brazilian investors

Why are Brazilians looking at passive income in dollars?

Brazilian investors’ interest in sources of income in foreign currency has grown significantly in recent years. With persistent domestic economic uncertainties, high interest rates, and recurring exchange rate volatility, many have decided to seek alternatives to dollarize part of their earnings and build wealth in a strong currency.

In this scenario, exchange-traded funds (ETFs) that distribute monthly dividends present a practical and accessible solution. Unlike building an individual portfolio of international stocks—which would require capital and technical knowledge—these instruments allow exposure to the U.S. market with reduced costs and automated management.

For Brazilian investors who want to establish a steady flow of dollar income, understanding how these funds work and knowing the main options available is the first step to structuring a solid long-term strategy.

How do ETFs that distribute monthly dividends work?

ETFs focused on dividends gather a selection of assets with a proven track record of regular profit distribution. The key difference is in frequency: these funds pass on dividends every month, ensuring a predictable income stream.

Instead of buying multiple American stocks individually—which can be costly and labor-intensive—investors acquire shares of a single fund and immediately access a diversified portfolio with automated payments. The yields are deposited in dollars into the brokerage account and can be reinvested or converted according to personal goals.

These funds typically concentrate on companies with strong cash flow, defensive sectors (energy, telecommunications, real estate), or assets that prioritize returning profits to shareholders, such as REITs. The result is a source of income that continues generating revenue even during periods of uncertainty or market downturns—a valuable attribute for those building wealth gradually.

6 American ETFs to build dollar income with monthly payments

Below are six of the most popular funds among investors seeking to turn their investments into a consistent monthly income in foreign currency.

1. Global X SuperDividend ETF (SDIV) — Global diversification with high yield

If the goal is to secure recurring income with broad exposure to multiple regions, SDIV is a relevant option. Managed by Global X since 2011, this fund invests in shares of companies with very high profit distribution rates worldwide, offering stable monthly payments for over a decade and a half.

The fund tracks the Solactive Global SuperDividend Index, which selects 100 international stocks with the highest combined dividends and moderate volatility. Each stock is weighted equally, avoiding concentration in a few issuers or specific regions.

Key indicators (December/2025)

Geographic and sector allocation

The portfolio diversifies among:

• Sectors: Financial (~28%), Energy, Real Estate/REITs (~13%), plus utilities and consumer sectors
• Regions: United States (~25%), Brazil (~15%), Hong Kong (~12%), Canada, UK, and emerging markets

Advantages

• Monthly dollar payments with predictable cash flow
• Broad geographic exposure reducing dependence on a single economy
• Focus on high-dividend-yield companies

Limitations

• Higher risk of dividend cuts in companies with weak fundamentals
• Significant exposure to cyclical sectors and emerging markets, which are more volatile
• Management fee higher than traditional passive funds

2. Global X SuperDividend U.S. ETF (DIV) — Exclusive focus on the U.S. market

Among dollar-yield funds focused solely on U.S. stocks, DIV stands out for balancing high yield with reduced fluctuation. It offers a strategic approach for those seeking stability without compromising cash flow.

The fund tracks the Indxx SuperDividend U.S. Low Volatility Index, which identifies 50 U.S. stocks with the highest distribution rates and low historical volatility compared to the S&P 500. This combination aims to ensure steady income even during turbulent periods, favoring defensive sectors.

Key indicators (December/2025)

Sector composition

The profile is distinctly defensive:

• Utilities (utilities): ~21%
• Real estate (REITs): ~19%
• Energy: ~19%
• Basic consumption: ~10%
• Communications and health: remaining

This setup reduces exposure to more volatile sectors like technology or fast-growing retail.

Advantages

• Monthly dollar dividends with consistent yield above 7% per year
• Exposure to historically resilient sectors during crises
• Focused on low fluctuation stocks

Disadvantages

• High sector concentration may hurt performance during unfavorable periods for energy and utilities
• Limited to only 50 stocks, missing growth opportunities in other companies
• “Yield trap” risk: companies with high rates may deteriorate and cut dividends

3. Invesco S&P 500 High Dividend Low Volatility ETF (SPHD) — Balance between income and protection

For investors seeking income linked to a more stable portfolio, SPHD offers an interesting combination. It groups S&P 500 stocks with high dividends and low historical volatility, creating a balance between revenue generation and protection against sharp swings.

Launched in 2012, the fund tracks the S&P 500 Low Volatility High Dividend Index, selecting 50 S&P 500 companies with the highest distribution rates and lowest price fluctuations. The methodology limits sector exposure to a maximum of 25%, promoting diversification.

Key indicators (November/2025)

Strategy and philosophy

SPHD follows a smart beta methodology, rebalancing its composition semiannually (January and July) to maintain the desired balance. The portfolio includes names like Pfizer, Verizon, Altria, and Consolidated Edison—mature companies with predictable cash flow and reliable distribution history.

Advantages

• Stability with income: monthly dividends combined with reduced volatility
• Exposure to established blue-chip stocks with solid payment history
• Semiannual rebalancing keeps the portfolio updated

Disadvantages

• Moderate yield (~3.4%), lower than funds focused solely on high yield
• Reduced growth potential: absence of growth stocks limits appreciation
• Nearly half of the fund is concentrated in three sectors, sector risk in a macroeconomic downturn

4. iShares Preferred and Income Securities ETF (PFF) — Preferred stocks as an alternative

Among funds offering dollar income with monthly payments, PFF stands out for investing in a specific class: preferred stocks. Launched in 2007 by iShares (BlackRock), it is a reference for those seeking regular, stable payments with a more defensive profile than common stocks.

Preferred stocks occupy an intermediate position between equity and debt: they pay fixed dividends regularly (usually monthly) and have lower volatility than common stocks, though they are more sensitive to interest rate changes.

Key indicators (November/2025)

Composition and strategy

PFF tracks the ICE Exchange-Listed Preferred & Hybrid Securities Index, comprising over 450 assets—mainly preferred stocks issued by large U.S. financial institutions. The most representative sectors:

• Financial (banks and insurance): +60%
• Utilities (utilities)
• Energy and telecommunications

The strong presence of banks like JPMorgan, Bank of America, and Wells Fargo reflects their frequent issuance of preferred stocks to raise capital more efficiently. The strategy is passive, with periodic rebalancing and broad diversification.

Advantages

• Stable monthly income with yield above 6% per year, even in high volatility
• Reduced price oscillation: more predictable behavior than common stocks
• Robust diversification: over 400 issues dilute individual risk

Disadvantages

• Sensitivity to interest rates: fixed dividends cause market value to decline in rising rate cycles
• Low growth potential: focus on income, not capital appreciation
• Sector concentration in financials: a crisis in this segment would impact much of the portfolio

5. Global X NASDAQ-100 Covered Call ETF (QYLD) — Options strategy for high income

For those seeking monthly dollar income with above-average returns, QYLD is one of the most well-known options. This fund implements a covered call strategy on the Nasdaq-100 index, generating high monthly dividends at the cost of limiting appreciation potential.

Key indicators (December/2025)

How it works

QYLD tracks the Cboe Nasdaq-100 BuyWrite Index, executing monthly a “covered call” strategy: buying all Nasdaq-100 stocks and simultaneously selling call options on the index itself. The premiums generated are fully distributed to shareholders. This dynamic turns market volatility into a steady cash flow.

Sector exposure

Since it replicates the Nasdaq-100, it is predominantly exposed to technology and innovation:

• Information Technology: ~56%
• Communications: ~15%
• Consumer Discretionary: ~13%

Top holdings include Apple, Microsoft, NVIDIA, Amazon, and Meta.

Advantages

• Monthly income in dollars among the highest: over 13% in the last 12 months
• Automated options management by the fund
• Lower volatility in sideways markets: received premiums cushion declines

Disadvantages

• Limited capital gains: during strong Nasdaq-100 rallies, the fund does not capture full appreciation
• Variable yield: depends on market volatility; in calm periods, dividends decrease
• Capital erosion risk: exchanging appreciation for income may lead to a decline in share value

6. JPMorgan Equity Premium Income ETF (JEPI) — Quality with structured derivatives

Among the most popular funds for dollar income with monthly dividends, JEPI stands out as an alternative with high yield and controlled risk. Launched in 2020 by JPMorgan, it quickly attracted billions of dollars by combining quality stocks with derivatives that generate recurring revenue.

Key indicators (October/2025)

How the strategy works

JEPI combines two approaches to generate income with controlled volatility:

1. Active selection of S&P 500 stocks: a portfolio of about 100 to 150 stocks with high value and low fluctuation, prioritizing defensive sectors like Healthcare, Consumer Staples, and Industrials.

2. Use of structured instruments: derivatives that replicate selling call options on the S&P 500. They generate premiums paid monthly to shareholders.

This hybrid approach allows for consistent income delivery while reducing exposure to typical stock market risks.

Sector composition

Unlike funds concentrated in technology, JEPI favors sectors with lower historical volatility. Top holdings include Coca-Cola, AbbVie, UPS, PepsiCo, and Progressive, contributing to more stable performance.

Advantages

• High income with controlled risk: approximately 8% yield per year with a beta of only 0.56 relative to the S&P 500
• High liquidity and operational robustness: the largest active dividend ETF in the world with over US$ 40 billion under management
• Possible tax advantage: part of the income classified as long-term capital gains

Disadvantages

• Limited participation in strong rallies: sacrifices potential gains in bull markets
• Active management complexity: derivative structures require technical skill; risk of underperformance
• Slightly higher fee: 0.35% per year above most passive ETFs

Practical paths for Brazilian investors

There are several ways for Brazilian investors to access these ETFs that distribute monthly dividends.

International brokerages

The most direct approach is through international brokerages offering access to U.S. exchanges. Platforms like Interactive Brokers, Nomad, Avenue, Stake, and others allow opening dollar accounts, transferring funds internationally, and purchasing funds like SPHD, JEPI, or SDIV directly.

Dividends are automatically paid in dollars and can be reinvested or converted. The advantage is receiving net income in a strong currency, ideal for protecting wealth and building dollarized income.

BDRs on B3

Another option is Brazilian Depositary Receipts (BDRs) of ETFs, representing foreign assets. Currently, the offering is limited—IVVB11 (which tracks the S&P 500) is an example—and there are no BDRs specifically of funds paying monthly dividends like those listed in the U.S.

Additionally, dividends received via BDRs may face higher taxation and longer distribution times, reducing efficiency for passive dollar income.

( Complementing with active operations

While ETFs focused on monthly dividends are ideal for passive income, many investors complement with more active approaches. Derivative operations on specialized platforms offer the possibility to speculate on appreciation or depreciation of assets without owning them, expanding earning opportunities.

This modality allows profiting both from market rises and falls, supported by leverage that amplifies gains )and risks###. When combined with dividend-paying funds, this dual strategy can generate dollar income more frequently and flexibly.

Conclusion: Structuring dollar income

For Brazilian investors seeking to dollarize earnings and build stable passive income, U.S. ETFs that distribute monthly dividends are a practical and accessible route. Choosing between SDIV, DIV, SPHD, PFF, QYLD, or JEPI depends on individual risk profile, income goals, and investment horizon.

Whether prioritizing global diversification (SDIV), defensive stability (DIV), SPHD(, preferred stocks )PFF(, high-yield options )QYLD(, or active quality management )JEPI(, all these alternatives offer a monthly flow of foreign currency income.

The first step is to open an account with an international broker, study each fund’s composition and history, and start with an investment aligned with your investor profile. With patience and discipline, it is possible to build a robust wealth and a steady dollar income.