Best Of
Best Covered Call ETFs in 2026
ETFs that use options-writing strategies to generate enhanced income from equity positions.
Data updated July 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 generate income by selling call options against their equity holdings. When markets move sideways or decline modestly, these funds shine—collecting options premiums while still holding the underlying stocks. The trade-off is capped upside: in strong rallies, the fund gives up gains above the option strike price. Funds like JEPI and QYLD have demonstrated this strategy at scale, collectively managing tens of billions in assets. Newer entrants target single stocks (TSLA, NVDA, AAPL) with higher volatility and higher premiums, but correspondingly higher risk. The best covered call ETFs balance premium income with enough upside participation to avoid falling too far behind their benchmarks over full market cycles.
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Top picks
Top 3 covered call ETFs by assets under management.
Yield distribution
Expense ratio distribution
Income projection
Estimated income if the current average distribution rate of 12.40% held for a full year with share prices unchanged. Distribution rate is not total return—a fund can pay a large distribution while its share price falls—so treat these as an upper-bound illustration, not a forecast.
| Investment | Annual income | Monthly income | Weekly income |
|---|---|---|---|
| $10,000 | $1,240 | $103 | $24 |
| $25,000 | $3,100 | $258 | $60 |
| $50,000 | $6,200 | $517 | $119 |
| $100,000 | $12,399 | $1,033 | $238 |
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 | 8.24% | 0.35% | $45.1B | Monthly |
| JEPQ | JPMorgan Nasdaq Equity Premium Income ETF | JPMorgan | 13.04% | 0.35% | $39.4B | Monthly |
| QQQI | NEOS Nasdaq-100 High Income ETF | NEOS | 14.53% | 0.68% | $13.3B | Monthly |
| BOXX | Alpha Architect BOXX ETF | Alpha Architect | — | 0.19% | $12.9B | Semi-Annual |
| SPYI | NEOS S&P 500 High Income ETF | NEOS | 12.02% | 0.68% | $10.7B | Monthly |
| BUFR | FT Vest Laddered Buffer ETF | First Trust | — | 1.05% | $10.1B | None |
| QYLD | Global X Nasdaq 100 Covered Call ETF | Global X | 12.06% | 0.61% | $8.1B | Monthly |
| DIVO | Amplify CWP Enhanced Dividend Income ETF | Amplify ETFs | 4.75% | 0.56% | $7.4B | Monthly |
| SHLD | Global X Defense Tech ETF | Global X | 0.62% | 0.50% | $6.7B | Semi-Annual |
| GPIQ | Goldman Sachs Nasdaq-100 Core Premium Income ETF | Goldman Sachs | 11.12% | 0.29% | $5.0B | Monthly |
| GPIX | Goldman Sachs S&P 500 Core Premium Income ETF | Goldman Sachs | 8.59% | 0.29% | $4.8B | Monthly |
| KNG | FT Vest S&P 500 Dividend Aristocrats Target Income ETF | First Trust | 8.21% | 0.75% | $3.4B | Monthly |
| XYLD | Global X S&P 500 Covered Call ETF | Global X | 12.03% | 0.60% | $3.2B | Monthly |
| BOTZ | Global X Robotics & Artificial Intelligence ETF | Global X | 0.11% | 0.68% | $3.2B | Semi-Annual |
| BALT | Innovator Defined Wealth Shield ETF | Innovator ETFs | — | 0.69% | $2.7B | None |
| FTHI | First Trust BuyWrite Income ETF | First Trust | 8.71% | 0.75% | $2.4B | Monthly |
| ACIO | Aptus Collared Investment Opportunity ETF | Aptus | 0.42% | 0.79% | $2.4B | Quarterly |
| BUFD | FT Vest Laddered Deep Buffer ETF | First Trust | — | 1.05% | $1.9B | None |
| TLTW | iShares 20+ Year Treasury Bond BuyWrite Strategy ETF | iShares | 7.45% | 0.35% | $1.9B | Monthly |
| BUFQ | FT Vest Laddered Nasdaq Buffer ETF | First Trust | — | 1.10% | $1.5B | Annual |
| CSHI | NEOS Enhanced Income 1-3 Month T-Bill ETF | NEOS | 4.70% | 0.38% | $1.5B | Monthly |
| PJAN | Innovator U.S. Equity Power Buffer ETF - January | Innovator ETFs | — | 0.79% | $1.5B | None |
| FJAN | FT Vest U.S. Equity Buffer ETF - January | First Trust | — | 0.85% | $1.4B | None |
| BITO | ProShares Bitcoin Strategy ETF | ProShares | 1.41% | 0.95% | $1.4B | Monthly |
| NVDY | YieldMax NVDA Option Income Strategy ETF | YieldMax | 40.23% | 1.01% | $1.4B | Weekly |
| RYLD | Global X Russell 2000 Covered Call ETF | Global X | 12.06% | 0.60% | $1.4B | Monthly |
| IDVO | Amplify International Enhanced Dividend Income ETF | Amplify ETFs | 5.97% | 0.66% | $1.3B | Monthly |
| FDEC | FT Vest U.S. Equity Buffer ETF - December | First Trust | — | 0.85% | $1.3B | None |
| BALI | iShares Blackrock Advantage Large Cap Income ETF | iShares | 9.51% | 0.35% | $1.3B | Monthly |
| BUYW | Main Buywrite ETF | Main Management ETFs | 5.96% | 1.29% | $1.3B | Monthly |
| ISPY | ProShares S&P 500 High Income ETF | ProShares | 6.35% | 0.55% | $1.3B | Monthly |
| BTCI | NEOS Bitcoin High Income ETF | NEOS | 26.54% | 0.98% | $1.1B | Monthly |
| IWMI | NEOS Russell 2000 High Income ETF | NEOS | 14.33% | 0.68% | $1.1B | Monthly |
| CHPY | YieldMax Semiconductor Portfolio Option Income ETF | YieldMax | 43.57% | 1.03% | $1.1B | Weekly |
| EIPI | FT Energy Income Partners Enhanced Income ETF | First Trust | 6.70% | 1.11% | $1.1B | Monthly |
| OMAH | VistaShares Target 15 Berkshire Select Income ETF | VistaShares | 14.58% | 0.95% | $958M | Monthly |
| QDTE | Roundhill Innovation-100 0DTE Covered Call Strategy ETF | Roundhill Investments | 37.19% | 0.95% | $939M | Weekly |
| FTQI | First Trust Nasdaq BuyWrite Income ETF | First Trust | 10.84% | 0.75% | $932M | Monthly |
| BITX | Volatility Shares 2x Bitcoin Strategy ETF | Volatility Shares | 1.67% | 1.85% | $926M | Monthly |
| ULTY | YieldMax Ultra Option Income Strategy ETF | YieldMax | 62.97% | 1.14% | $850M | Weekly |
| QQA | Invesco QQQ Income Advantage ETF | Invesco | 10.39% | 0.29% | $794M | Monthly |
| MSTY | YieldMax MSTR Option Income Strategy ETF | YieldMax | 82.04% | 0.99% | $765M | Weekly |
| TSLY | YieldMax TSLA Option Income Strategy ETF | YieldMax | 53.72% | 1.01% | $758M | Weekly |
| QDVO | Amplify CWP Dividend & Option Income ETF | Amplify ETFs | 10.83% | 0.56% | $742M | Monthly |
| QDEC | FT Cboe Vest Growth-100 Buffer ETF - December | First Trust | — | 0.90% | $686M | — |
| FEPI | REX FANG & Innovation Equity Premium Income ETF | REX Shares | 25.81% | 0.65% | $659M | Weekly |
| HNDL | Strategy Shares Nasdaq 7 Handl Index ETF | Strategy | 7.07% | 0.96% | $635M | Monthly |
| WTAI | WisdomTree Artificial Intelligence and Innovation Fund | WisdomTree | 1.33% | 0.45% | $611M | Annual |
| SIXH | ETC 6 Meridian Hedged Equity-Index Option Strategy ETF | Exchange Traded Concepts | 2.21% | 1.01% | $570M | Monthly |
| QFLR | Innovator Nasdaq-100 Managed Floor ETF | Innovator ETFs | 0.09% | 0.89% | $515M | Quarterly |
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, NEOS, Alpha Architect 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 July 2026.
What is the average yield of these ETFs?
The average distribution yield across the 50 ETFs on this list is 12.40%. Individual yields range from 0.09% to 8.24%.
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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