The Schwab U.S. Dividend Equity ETF ( SCHD 0.57%), JPMorgan Equity Premium Income ETF ( JEPI 0.43%), and Vanguard Real Estate ETF ( VNQ -0.07%) are three great ETFs for generating passive income. They pay higher-yielding dividends that have grown over the years.

If that strategy sounds interesting, then you should take a closer look at the JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ: JEPQ). A small $500 investment in that ETF will give you nearly $50 in extra income every year.

Covered call ETFs have become highly popular in the United States because of their high dividends and regular payments. The JPMorgan Equity Premium Income ETF (JEPI) has accumulated over $37 billion in assets,

Risks of owning this fund include its high concentration of international finance stocks, which represent roughly a third of its holdings. In addition, the fund's lifetime performance of 0.9% is well below the average return of U.S.-based benchmark indexes such as the S&P 500 over the same period.

Its smart to seek income from your investments -- whether it's because you need that income to support yourself in retirement, or whether you want to use it to invest in more stocks. It's also a fine idea to seek that passive income from exchange-traded funds (ETFs) that are focused on dividend-paying shares.