Best TSPY Alternatives in 2026

The "Best TSPY Alternatives" category groups nine income-focused ETFs, most built around S&P 500 covered-call or derivative-income strategies designed to generate elevated yield with monthly (and in one case weekly) distributions. JPMorgan's JEPI dominates this group by size at $45.3B in AUM, well ahead of NEOS's SPYI at $11.9B and Amplify's DIVO at $7.8B, reflecting how issuer concentration in this space is heavily weighted toward the earliest and largest entrants. Newer or more specialized products like Roundhill's XDTE (weekly distributions, 0DTE options strategy) and Defiance's SPYT show how issuers are experimenting with alternative structures and higher-yield targets, though at smaller scale.

• SPYT shows the highest yield in the group at 20.37%, while DIVO shows the lowest at 4.94%, illustrating a wide dispersion in income generation strategies among the funds shown above.
• GPIX carries the lowest expense ratio at 0.29%, while XDTE carries the highest at 0.97%, a difference of 0.68 percentage points across the top 9 here.
• JEPI alone accounts for roughly 59% of the combined AUM (~$76.2B) across these nine funds, underscoring significant size concentration in a single product.

• 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 10.5%, 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 0.64% — 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.