3 Top ETFs to Buy for Passive Income in May

Investing in exchange-traded funds (ETFs) can be a great way to generate passive income. Many ETFs focus on holding income-generating assets like dividend-paying stocks or bonds. Meanwhile, you don't have to actively manage ETFs like you would a portfolio of stocks and bonds, making the income they produce as passive as it gets.

The Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD), SPDR Portfolio High Yield Bond ETF (NYSEMKT: SPHY), and JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ: JEPQ) stand out as top ETFs for those seeking to generate passive income this May.

The Schwab U.S. Dividend Equity ETF is a passively managed fund that aims to track the Dow Jones U.S. Dividend 100 Index. That index measures the performance of 100 high-yielding dividend stocks with records for paying consistent dividends. These stocks also tend to have strong financial metrics compared to their peers.

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Source Fool.com