Investors Seek Reliable Income Amid Uncertain Social Security Future

As uncertainty looms over Social Security's viability, investors are increasingly shifting focus towards reliable income streams for retirement. A report highlights three ETFs designed to offer diverse income generation strategies.

Date: 29-10-2024

AI Rating: 7

The report emphasizes a growing concern among investors regarding the future of Social Security and its implications on retirement planning. Investors are urged to focus on building independent income streams to secure their financial future.

The analysis features three specific ETFs that cater to these needs:

Pacer US Cash Cows 100 ETF (COWZ)

Focusing on companies with high free cash flow, this ETF yields 1.89% with a higher expense ratio of 0.49%. Notable positions include Hewlett Packard Enterprise, Airbnb, and Chevron. Its performance has slightly outpaced the S&P 500 on a total return basis, reflecting a positive outlook.

iShares Core Dividend Growth ETF (DGRO)

This ETF boasts a competitive expense ratio of 0.08% and a 2.2% yield, targeting companies with a minimum of five consecutive years of dividend growth. Key holdings include ExxonMobil and Microsoft. Although it has lagged behind the S&P 500 over the last five years, it still provides solid yields and share price appreciation.

JPMorgan Equity Premium Income ETF (JEPI)

With a substantial 7% yield and a moderate expense ratio of 0.35%, this innovative ETF aims to generate income through high-dividend stocks combined with an options overlay. Notable positions include Meta Platforms and Southern Company. Although it has underperformed relative to the S&P 500, it maintains a focus on consistent income generation, making it appealing for conservative investors.

Overall, these insights reflect a clear shift in investor priorities towards ETFs that offer consistent income streams amidst uncertainties surrounding Social Security benefits.

Stocks: COWZ DGRO JEPI MSFT AAPL XOM JPM META CVX