DIVO vs GPIQ: Which Is the Better Pick in 2026?

Overview

DIVO and GPIQ are both equity ETFs that use covered call strategies to generate income, but they target fundamentally different underlying markets. DIVO invests in a diversified basket of dividend-paying U.S. stocks and sells calls opportunistically, while GPIQ focuses exclusively on Nasdaq-100 constituents and systematically sells calls against the index. The distinction matters: DIVO tilts toward traditional dividend payers with lower volatility (beta 0.54), while GPIQ captures large-cap growth stocks with higher volatility (beta 1.0964) and significantly higher income yield.

How they differ

The biggest difference is underlying exposure. DIVO holds a custom basket of dividend stocks, giving it a 0.54 beta and 4.66% distribution rate. GPIQ holds Nasdaq-100 companies—predominantly large-cap tech, software, and growth firms—with a 1.0964 beta and 10.12% distribution rate. That yield gap signals a strategic choice: GPIQ's more aggressive call-writing program extracts income from growth stocks that historically paid little, while DIVO's approach assumes its dividend-stock basket already generates meaningful yield.

Second, fee and scale differ. GPIQ charges 0.29% in expenses against $5.37B in AUM, making it cheaper to own despite being newer (inception October 2023). DIVO carries a 0.56% expense ratio on a larger, longer-established $7.61B fund since December 2016. For a $100,000 position, that's a $270 annual fee difference.

Third, the call strategies differ in intensity. DIVO sells calls "opportunistically"—selectively—suggesting restraint and flexibility. GPIQ sells calls with "exposure to the benchmark," implying a more systematic approach designed to capture the Nasdaq-100's growth potential while capping upside to fund income.

Who each is best for

DIVO: Fits investors seeking a defensive, lower-volatility dividend income stream from traditional equity holdings. The 0.54 beta and 4.66% yield suit portfolios built around stability and steadier cash flow rather than capital gains.

GPIQ: Fits investors comfortable with Nasdaq-100 concentration and willing to accept capped upside in exchange for high current income from growth-oriented stocks. The 1.0964 beta and 10.12% yield appeal to those seeking meaningful cash distributions from a concentrated, higher-volatility equity sleeve.

Key risks to know

• NAV erosion at elevated yields. GPIQ's 10.12% distribution rate exceeds typical underlying Nasdaq-100 dividend yield, suggesting reliance on return-of-capital or synthetic income that may erode net asset value over time—a particular concern given the fund's short track record since October 2023.

• Call-writing cap on upside. Both funds' call strategies limit capital appreciation when underlying stocks rally sharply. In a strong growth market, GPIQ holders will capture less upside than unhedged Nasdaq-100 exposure.

• Nasdaq-100 concentration risk (GPIQ only). GPIQ's exclusive focus on the index concentrates exposure to large-cap tech and software, which can experience significant drawdowns during sector rotations or rising-rate environments.

• Dividend yield sustainability in DIVO. DIVO's underlying basket composition may shift over market cycles. If dividend-paying stocks fall out of favor or cut distributions, the fund's yield and fund performance may decline materially.

• Short performance history (GPIQ only). GPIQ has less than one year of live trading history. Covered call strategies perform differently across market regimes; early-stage data may not reflect behavior in prolonged downturns or volatility spikes.

Bottom line

DIVO prioritizes stability and steady, historically supported dividend income from lower-volatility stocks; GPIQ chases maximum current income from growth stocks through aggressive call sales, at the cost of upside and higher volatility. If you want defensive equity income with a longer operational track record, DIVO's lower beta and modest distribution rate align with that goal. If you're attracted to Nasdaq-100 upside but willing to cap gains in exchange for substantial monthly distributions, GPIQ's concentrated index approach and lower fees may warrant attention—though its brief history and elevated yield warrant close monitoring. Past performance does not predict future results.