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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

ETFs listed50
Avg yield12.40%
Avg expense ratio0.75%

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

0-2%162-5%35-8%68-12%912%+16

Expense ratio distribution

0-0.20%10.20-0.50%90.50-0.75%140.75-1.00%151.00%+11

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.

InvestmentAnnual incomeMonthly incomeWeekly 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.

First Trust10
NEOS5
Global X5
YieldMax5
Amplify ETFs3
Innovator ETFs3
JPMorgan2
Goldman Sachs2

All 50 ETFs

Ticker Name Issuer Yield Expense ratio AUM Frequency
JEPIJPMorgan Equity Premium Income ETFJPMorgan8.24%0.35%$45.1BMonthly
JEPQJPMorgan Nasdaq Equity Premium Income ETFJPMorgan13.04%0.35%$39.4BMonthly
QQQINEOS Nasdaq-100 High Income ETFNEOS14.53%0.68%$13.3BMonthly
BOXXAlpha Architect BOXX ETFAlpha Architect0.19%$12.9BSemi-Annual
SPYINEOS S&P 500 High Income ETFNEOS12.02%0.68%$10.7BMonthly
BUFRFT Vest Laddered Buffer ETFFirst Trust1.05%$10.1BNone
QYLDGlobal X Nasdaq 100 Covered Call ETFGlobal X12.06%0.61%$8.1BMonthly
DIVOAmplify CWP Enhanced Dividend Income ETFAmplify ETFs4.75%0.56%$7.4BMonthly
SHLDGlobal X Defense Tech ETFGlobal X0.62%0.50%$6.7BSemi-Annual
GPIQGoldman Sachs Nasdaq-100 Core Premium Income ETFGoldman Sachs11.12%0.29%$5.0BMonthly
GPIXGoldman Sachs S&P 500 Core Premium Income ETFGoldman Sachs8.59%0.29%$4.8BMonthly
KNGFT Vest S&P 500 Dividend Aristocrats Target Income ETFFirst Trust8.21%0.75%$3.4BMonthly
XYLDGlobal X S&P 500 Covered Call ETFGlobal X12.03%0.60%$3.2BMonthly
BOTZGlobal X Robotics & Artificial Intelligence ETFGlobal X0.11%0.68%$3.2BSemi-Annual
BALTInnovator Defined Wealth Shield ETFInnovator ETFs0.69%$2.7BNone
FTHIFirst Trust BuyWrite Income ETFFirst Trust8.71%0.75%$2.4BMonthly
ACIOAptus Collared Investment Opportunity ETFAptus0.42%0.79%$2.4BQuarterly
BUFDFT Vest Laddered Deep Buffer ETFFirst Trust1.05%$1.9BNone
TLTWiShares 20+ Year Treasury Bond BuyWrite Strategy ETFiShares7.45%0.35%$1.9BMonthly
BUFQFT Vest Laddered Nasdaq Buffer ETFFirst Trust1.10%$1.5BAnnual
CSHINEOS Enhanced Income 1-3 Month T-Bill ETFNEOS4.70%0.38%$1.5BMonthly
PJANInnovator U.S. Equity Power Buffer ETF - JanuaryInnovator ETFs0.79%$1.5BNone
FJANFT Vest U.S. Equity Buffer ETF - JanuaryFirst Trust0.85%$1.4BNone
BITOProShares Bitcoin Strategy ETFProShares1.41%0.95%$1.4BMonthly
NVDYYieldMax NVDA Option Income Strategy ETFYieldMax40.23%1.01%$1.4BWeekly
RYLDGlobal X Russell 2000 Covered Call ETFGlobal X12.06%0.60%$1.4BMonthly
IDVOAmplify International Enhanced Dividend Income ETFAmplify ETFs5.97%0.66%$1.3BMonthly
FDECFT Vest U.S. Equity Buffer ETF - DecemberFirst Trust0.85%$1.3BNone
BALIiShares Blackrock Advantage Large Cap Income ETFiShares9.51%0.35%$1.3BMonthly
BUYWMain Buywrite ETFMain Management ETFs5.96%1.29%$1.3BMonthly
ISPYProShares S&P 500 High Income ETFProShares6.35%0.55%$1.3BMonthly
BTCINEOS Bitcoin High Income ETFNEOS26.54%0.98%$1.1BMonthly
IWMINEOS Russell 2000 High Income ETFNEOS14.33%0.68%$1.1BMonthly
CHPYYieldMax Semiconductor Portfolio Option Income ETFYieldMax43.57%1.03%$1.1BWeekly
EIPIFT Energy Income Partners Enhanced Income ETFFirst Trust6.70%1.11%$1.1BMonthly
OMAHVistaShares Target 15 Berkshire Select Income ETFVistaShares14.58%0.95%$958MMonthly
QDTERoundhill Innovation-100 0DTE Covered Call Strategy ETFRoundhill Investments37.19%0.95%$939MWeekly
FTQIFirst Trust Nasdaq BuyWrite Income ETFFirst Trust10.84%0.75%$932MMonthly
BITXVolatility Shares 2x Bitcoin Strategy ETFVolatility Shares1.67%1.85%$926MMonthly
ULTYYieldMax Ultra Option Income Strategy ETFYieldMax62.97%1.14%$850MWeekly
QQAInvesco QQQ Income Advantage ETFInvesco10.39%0.29%$794MMonthly
MSTYYieldMax MSTR Option Income Strategy ETFYieldMax82.04%0.99%$765MWeekly
TSLYYieldMax TSLA Option Income Strategy ETFYieldMax53.72%1.01%$758MWeekly
QDVOAmplify CWP Dividend & Option Income ETFAmplify ETFs10.83%0.56%$742MMonthly
QDECFT Cboe Vest Growth-100 Buffer ETF - DecemberFirst Trust0.90%$686M
FEPIREX FANG & Innovation Equity Premium Income ETFREX Shares25.81%0.65%$659MWeekly
HNDLStrategy Shares Nasdaq 7 Handl Index ETFStrategy7.07%0.96%$635MMonthly
WTAIWisdomTree Artificial Intelligence and Innovation FundWisdomTree1.33%0.45%$611MAnnual
SIXHETC 6 Meridian Hedged Equity-Index Option Strategy ETFExchange Traded Concepts2.21%1.01%$570MMonthly
QFLRInnovator Nasdaq-100 Managed Floor ETFInnovator ETFs0.09%0.89%$515MQuarterly

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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