Best S&P 500 Income ETFs (Reviewed & Ranked)

About this Video

• Video Title: Best S&P 500 Income ETFs (Reviewed & Ranked)
• Channel: Dividend Compounders with Cheese
• Speakers: Amos
• Duration: 00:19:13

Introduction

This video reviews and ranks various S&P 500 income ETFs based on specific metrics, excluding those with exceptionally high dividend yields. The goal is to identify the best performing ETFs considering factors like share price stability, dividend payout history, tax treatment of dividends (Return of Capital vs. ordinary income), and assets under management (AUM).

Key Takeaways

• Four key metrics were used to evaluate the ETFs: share price stability (capital preservation), dividend payout history (consistency and reliability), tax treatment of dividends (Return of Capital preferred), and assets under management (AUM – larger is better for stability).
• NEOS SpyE (SPY): High dividend yield (11.8%), mostly Return of Capital (ROC) distributions, significant dividend payout ($5,700 on a $100,000 investment), and substantial AUM ($4.8 billion). Showed good capital preservation.
• RoundHill X (XDAT): High dividend payout ($13,000 on a $100,000 investment), weekly dividend distributions, mostly Return of Capital (ROC), but smaller AUM ($400 million). Showed capital erosion.
• YieldMax SDTY (CITY): Good dividend payout ($11,300 on $100,000 investment), mostly ROC, but very small AUM ($13 million). Showed capital erosion.
• JPMorgan JPM (JEPY): Long history (since May 2020), but lower dividend payout ($4,200 on $100,000 investment), ordinary dividends (taxed at higher rates), and large AUM ($40.8 billion). Showed near-flat performance.
• Goldman Sachs GPIX: Good dividend payout ($4,000 on $100,000 investment), monthly distributions, decent AUM ($1.3 billion). Showed capital growth.
• Global X (XYLD): Long history (since 2013), mid-range dividend payout ($5,700 on $100,000 investment), monthly distributions, ROC, decent AUM ($3.1 billion). Showed significant capital erosion.
• Overall Ranking (based on the speaker's criteria): The speaker ranked NEOS SPY as the top performer, followed by Goldman Sachs GPIX. RoundHill XDAT and YieldMax CITY had high dividend payouts but significant capital erosion. JPMorgan JEPY and Global X XYLD underperformed.