IAUI vs SPYI: Which Is the Better Pick in 2026?

Overview

IAUI and SPYI are both monthly-paying ETFs engineered to deliver high income through options strategies, but they target radically different underlying assets. IAUI generates income by selling covered calls against gold ETPs, while SPYI employs a similar options overlay on the S&P 500 Index. The distinction is foundational: one is a precious-metals play seeking income atop commodity price moves; the other is large-cap equity seeking income while tracking broad market exposure.

How they differ

The biggest difference is underlying exposure. IAUI holds gold ETPs and seeks monthly income plus commodity appreciation; SPYI holds S&P 500 stocks and seeks income plus large-cap equity gains. That choice fundamentally determines risk and return dynamics—gold has zero equity beta and moves independently of stocks, while SPYI tracks equity markets with a beta of 0.7.

On yield, both distribute at roughly 11%+ annually, but SPYI carries a fractionally lower expense ratio (0.68% vs. 0.79%), and its $11.4B asset base dwarfs IAUI's $539M. The size gap matters for liquidity and fund longevity. Both deploy covered-call strategies for tax efficiency and monthly payouts, but SPYI's equity underpin suggests larger opportunity for underlying price appreciation to cushion or offset premium erosion.

IAUI is an extremely young fund, having launched in mid-2025; SPYI has three years of live history. That tenure difference is material when evaluating how an income strategy actually performs across market regimes.

Who each is best for

• IAUI: Fits investors seeking non-correlated income exposure who want gold's diversification properties and believe commodity prices may appreciate, and who tolerate higher volatility around a stationary underlying.

• SPYI: Fits investors wanting broad U.S. equity market exposure who prioritize monthly income generation over capital growth and can accept muted upside participation in rallies due to call-writing.

Key risks to know

• NAV erosion at extreme distribution yields. Both funds distribute 11%+ annually—well above typical underlying total returns. If the covered-call premium shrinks or equity/gold prices don't deliver sufficient gains, distributions may increasingly come from return of capital, eroding principal over time.

• Call-strike management and capped upside. Writing calls caps the funds' ability to capture large price moves. In a strong bull market for equities (SPYI) or gold (IAUI), the funds will lag their respective underlyings by the amount of forgone appreciation.

• Gold volatility and correlation shifts (IAUI). Gold prices are volatile and can experience extended drawdowns. IAUI's zero beta to stocks means it won't cushion equity losses, but it also won't participate in equity rallies—a two-edged sword if your overall portfolio tilts equities.

• IAUI's limited history. Launched in June 2025, IAUI has not weathered a full market cycle. The durability of its options strategy and the sustainability of its 11.29% distribution under stress remain untested.

• Options liquidity and rolling risk (both). Both funds depend on consistent access to liquid options markets to renew their call positions each month. Periods of elevated implied volatility or market dislocations could affect premium capture and distribution stability.

Bottom line

If you want non-correlated income and believe in gold's long-term appeal, IAUI offers a structured way to harvest gold via options—but you're buying a brand-new fund with an untested track record and a distribution rate that suggests heavy reliance on capital return. If you want broad equity market exposure bundled with monthly income and a larger, more-established fund ecosystem, SPYI provides that, accepting that the covered-call overlay will cap your upside in strong rallies. Past performance does not predict future results; both funds' ability to sustain yields above underlying returns will depend on options premiums and underlying price behavior going forward.