Best Of
Best Covered Call ETFs in 2026
ETFs that use options-writing strategies to generate enhanced income from equity positions.
Data updated May 2026 · 50 ETFs
Who this page is for
Best for
- Income investors comfortable trading capped upside for premium income
- Portfolios that benefit from lower volatility during sideways markets
- Retirees who prioritize current income over capital appreciation
Not a fit for
- Bull-market maximalists — covered calls cap the best-case return
- Tax-sensitive accounts — most option premiums are taxed as ordinary income
- Investors expecting the fund to beat its underlying index during strong rallies
Analysis
Covered call ETFs have become one of the most actively growing corners of the income-oriented ETF landscape, using options-writing strategies to generate elevated distributions — often at the cost of some upside participation. Among the funds shown above, JPMorgan dominates by assets, with JEPI and JEPQ collectively representing over $83 billion in AUM and offering a compelling combination of relatively low expense ratios (0.35% each) and monthly income. The category spans a wide strategic range, from traditional equity-linked covered calls to buffer strategies and concentrated single-theme funds, with issuers including NEOS, Global X, Roundhill Investments, and Goldman Sachs all competing for investor attention.
- JEPI and JEPQ together account for the largest share of AUM in the top 10 here, despite offering yields well below the category's 18.98% average, highlighting how investors often prioritize issuer trust and risk-adjusted income over headline yield.
- MAGS (Roundhill MAGS WeeklyPay ETF) stands out in the top 10 here with a reported yield of 75.63% and weekly distributions, reflecting the high-volatility, concentrated nature of a Magnificent 7-focused covered call strategy.
- BOXX carries a yield of just 0.50% and BUFR shows 0.00% yield, underscoring that not every fund in this category is optimized primarily for income distribution.
- Among the monthly-pay funds in the top 10 here, GPIQ carries the lowest expense ratio at 0.29%, while QQQI and SPYI sit at the top of the monthly-pay range at 0.68% — a ~40 bp spread that compounds materially over long-horizon income holdings.
Investors should approach this category with awareness that high reported yields — particularly from concentrated or leveraged strategies like MAGS — may include return-of-capital components and carry significant volatility risk. Capped upside, tax treatment of options income, and distribution sustainability are all critical variables to examine before incorporating any covered call ETF into an income portfolio.
AI-generated analysis — AI can make mistakes. Verify important information independently. Not investment advice. Learn more
Top picks
Top 3 covered call ETFs by assets under management.
Yield distribution
Expense ratio distribution
Income projection
Estimated annual, monthly, and weekly income based on the average yield of 18.98% across these 50 ETFs. For illustration only—actual income will vary.
| Investment | Annual income | Monthly income | Weekly income |
|---|---|---|---|
| $10,000 | $1,898 | $158 | $36 |
| $25,000 | $4,744 | $395 | $91 |
| $50,000 | $9,488 | $791 | $182 |
| $100,000 | $18,975 | $1,581 | $365 |
Issuer breakdown
Distribution of ETFs by fund issuer. Larger issuers often offer lower expense ratios and higher liquidity.
All 50 ETFs
| Ticker | Name | Issuer | Yield | Expense ratio | AUM | Frequency |
|---|---|---|---|---|---|---|
| JEPI | JPMorgan Equity Premium Income ETF | JPMorgan | 8.20% | 0.35% | $45.6B | Monthly |
| JEPQ | JPMorgan Nasdaq Equity Premium Income ETF | JPMorgan | 10.85% | 0.35% | $37.7B | Monthly |
| BOXX | Alpha Architect BOXX ETF | Alpha Architect | 0.50% | 0.19% | $11.4B | Semi-Annual |
| QQQI | NEOS Nasdaq-100 High Income ETF | NEOS | 14.11% | 0.68% | $11.0B | Monthly |
| BUFR | FT Vest Laddered Buffer ETF | First Trust | — | 0.95% | $9.3B | Annual |
| SPYI | NEOS S&P 500 High Income ETF | NEOS | 12.09% | 0.68% | $9.2B | Monthly |
| QYLD | Global X Nasdaq 100 Covered Call ETF | Global X | 11.64% | 0.60% | $8.3B | Monthly |
| DIVO | Amplify CWP Enhanced Dividend Income ETF | Amplify ETFs | 4.81% | 0.56% | $7.0B | Monthly |
| MAGS | Roundhill MAGS WeeklyPay ETF | Roundhill Investments | 75.63% | 0.30% | $4.7B | Weekly |
| GPIQ | Goldman Sachs Nasdaq-100 Core Premium Income ETF | Goldman Sachs | 9.89% | 0.29% | $3.9B | Monthly |
| GPIX | Goldman Sachs S&P 500 Core Premium Income ETF | Goldman Sachs | 8.30% | 0.29% | $3.7B | Monthly |
| XYLD | Global X S&P 500 Covered Call ETF | Global X | 10.23% | 0.60% | $3.1B | Monthly |
| BALT | Innovator Defined Wealth Shield ETF | Innovator ETFs | — | 0.69% | $2.4B | Quarterly |
| ACIO | Aptus Collared Investment Opportunity ETF | Aptus | 0.38% | 0.79% | $2.3B | Quarterly |
| FTHI | First Trust BuyWrite Income ETF | First Trust | 8.95% | 0.76% | $2.2B | Monthly |
| TLTW | iShares 20+ Year Treasury Bond BuyWrite Strategy ETF | iShares | 10.23% | 0.35% | $2.0B | Monthly |
| BITO | ProShares Bitcoin Strategy ETF | ProShares | 84.60% | 0.95% | $1.9B | Monthly |
| BUFD | FT Vest Laddered Deep Buffer ETF | First Trust | — | 0.95% | $1.8B | Annual |
| PJAN | Innovator U.S. Equity Power Buffer ETF - January | Innovator ETFs | — | 0.79% | $1.6B | Annual |
| BUFQ | FT Vest Laddered Nasdaq Buffer ETF | First Trust | — | 1.00% | $1.4B | Annual |
| NVDY | YieldMax NVDA Option Income Strategy ETF | YieldMax | 49.97% | 1.09% | $1.4B | Weekly |
| FJAN | FT Vest U.S. Equity Buffer ETF - January | First Trust | — | 0.85% | $1.4B | Annual |
| FDEC | FT Vest U.S. Equity Buffer ETF - December | First Trust | — | 0.85% | $1.3B | Annual |
| BITX | Volatility Shares 2x Bitcoin Strategy ETF | Volatility Shares | 1.06% | 2.38% | $1.3B | Monthly |
| RYLD | Global X Russell 2000 Covered Call ETF | Global X | 11.80% | 0.60% | $1.3B | Monthly |
| ISPY | ProShares S&P 500 High Income ETF | ProShares | 7.48% | 0.56% | $1.3B | Monthly |
| MSTY | YieldMax MSTR Option Income Strategy ETF | YieldMax | 75.34% | 1.03% | $1.2B | Weekly |
| IDVO | Amplify International Enhanced Dividend Income ETF | Amplify ETFs | 6.03% | 0.65% | $1.2B | Monthly |
| BALI | iShares Blackrock Advantage Large Cap Income ETF | BlackRock | 7.57% | 0.35% | $1.1B | Monthly |
| CSHI | NEOS Enhanced Income 1-3 Month T-Bill ETF | NEOS | 4.70% | 0.38% | $1.1B | Monthly |
| ULTY | YieldMax Ultra Option Income Strategy ETF | YieldMax | 66.17% | 1.30% | $855M | Weekly |
| TSLY | YieldMax TSLA Option Income Strategy ETF | YieldMax | 49.34% | 1.07% | $837M | Weekly |
| BTCI | NEOS Bitcoin High Income ETF | NEOS | 26.36% | 0.98% | $834M | Monthly |
| QDTE | Roundhill QDTE QQQ ODTE Covered Call Strategy | Roundhill Investments | 22.14% | 0.96% | $828M | Weekly |
| IWMI | NEOS Russell 2000 High Income ETF | NEOS | 14.47% | 0.68% | $806M | Monthly |
| OMAH | VistaShares Omaha ETF | VistaShares | 14.94% | 0.95% | $749M | Monthly |
| QQA | Invesco QQQ Income Advantage ETF | Invesco | 9.88% | 0.29% | $675M | Monthly |
| QDVO | Amplify CWP Dividend & Option Income ETF | Amplify ETFs | 9.93% | 0.56% | $664M | Monthly |
| FEPI | REX FANG & Innovation Equity Premium Income ETF | REX Shares | 25.21% | 0.65% | $647M | Monthly |
| CHPY | YieldMax Semiconductor Portfolio Option Income ETF | YieldMax | 41.68% | 1.03% | $623M | Weekly |
| MLPI | NEOS MLP High Income ETF | NEOS | 14.72% | 0.68% | $588M | Monthly |
| BITU | ProShares Ultra Bitcoin Strategy ETF | ProShares | 1.38% | 0.98% | $513M | Monthly |
| WTPI | WisdomTree Equity Premium Income Fund | WisdomTree | 10.46% | 0.44% | $461M | Monthly |
| IAUI | NEOS Gold High Income ETF | NEOS | 12.27% | 0.79% | $427M | Monthly |
| CONY | YieldMax COIN Option Income Strategy ETF | YieldMax | 75.87% | 1.04% | $397M | Weekly |
| YMAX | YieldMax Universe Fund of Option Income ETFs | YieldMax | 59.37% | 1.33% | $390M | Weekly |
| AIPI | REX SHARES AI Equity Premium Income ETF | REX Shares | 34.84% | 0.65% | $388M | Monthly |
| PAPI | Parametric Equity Premium Income ETF | Morgan Stanley | 7.30% | 0.29% | $367M | Monthly |
| QQQH | NEOS Nasdaq-100 Hedged Equity Income ETF | NEOS | 9.08% | 0.68% | $363M | Monthly |
| KHPI | Kensington High Probability Income ETF | Kensington Asset Management | 9.00% | 0.98% | $360M | Monthly |
Frequently asked questions
What are the best covered call ETFs?
This page lists the top 50 ETFs in this category ranked by key metrics. The list includes funds from issuers like JPMorgan, Alpha Architect, NEOS, First Trust and more.
How often is this list updated?
The data on this page is refreshed regularly using the latest available distribution rates, expense ratios, and AUM figures. Last updated May 2026.
What is the average yield of these ETFs?
The average distribution yield across the 50 ETFs on this list is 18.98%. Individual yields range from 9.00% to 8.20%.
How does a covered call strategy work?
The fund owns stocks (or an index) and sells call options against those positions. The option buyer pays a premium for the right to buy the stock at a set price. If the stock stays below that price, the fund keeps the premium as income. If the stock rises above, the fund's gain is capped at the strike price.
Do covered call ETFs lose money in bear markets?
Yes, but typically less than their underlying index. The options premiums collected provide a partial buffer against losses. However, in a severe downturn, the premiums won't fully offset the decline in the underlying holdings.
What's the difference between index and single-stock covered call ETFs?
Index-based covered call ETFs (like JEPI, QYLD) sell options on broad indices, offering diversified, moderate premiums. Single-stock covered call ETFs (like TSLY, NVDY) sell options on individual volatile stocks, generating higher premiums but carrying concentration risk tied to one company's performance.
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