Best TSPY Alternatives in 2026

The category comprising the nine funds shown above centers on S&P 500-linked income strategies, primarily covered call and derivative-income ETFs designed to generate elevated yield from large-cap equity exposure. JPMorgan's JEPI anchors the group by a wide margin in size, while issuers like NEOS, Goldman Sachs, Global X, and newer entrants such as Roundhill Investments and Defiance ETFs offer variations on options-overlay income generation. Distribution frequency is mostly monthly, with XDTE standing out as the only weekly-pay fund in this set, reflecting its 0DTE (zero days to expiration) options strategy.

- SPYT shows the highest yield among the funds shown above at 20.31%, alongside one of the higher expense ratios at 0.92%. - GPIX carries the lowest expense ratio in the top 9 at 0.29%, paired with a relatively competitive 8.46% yield. -

• Strategy mismatch: several funds on this list track a different index or use a different income mechanism than TSPY, so swapping into one changes the exposure — upside participation, payout cadence, and tax character can all shift, not just the ticker.
• Capped upside: covered-call and option-overlay funds in this group keep the option premium in a rally but surrender gains above the strike, so they can trail the very index they write options against.
• Distribution sustainability: the average distribution rate here is 10.1%, and payouts at that level often include return of capital — when distributions persistently exceed total return, NAV erodes and shrinks the base that generates future income.
• Single-index dependence: most funds here are built on the same S&P 500 exposure, so they rise and fall together and share that index's concentration in its largest constituents — holding several of them does not diversify the underlying index risk.
• Expense drag: expense ratios in this group average 0.63% — several times what broad index funds charge — and that cost compounds directly against total return.

• Universe: a hand-curated peer set, split into close peers (8 here — same core exposure and same income mechanism, so a like-for-like swap) and broader substitutes (a different index, underlying asset, or income mechanism). Every fund is labelled in the Strategy fit column; TSPY itself is excluded.
• Eligibility: active ETFs only — liquidated, delisted, and renamed funds drop out automatically. Leveraged and inverse products are never listed: a daily-reset 2x or -1x fund is not an alternative to a long income position.
• Ranking: assets under management, used only as a fund-size ranking. Never ranked by yield — yields are shown as data, not used to order the list.
• Fit: how each fund's strategy differs from TSPY — and who each one suits — is covered in the strategy notes and FAQ below.