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ETF Comparison

WDTE vs XYLD: Which Is the Better Pick in 2026?

A head-to-head comparison of Defiance S&P 500 Weekly Distribution ETF and Global X S&P 500 Covered Call ETF covering yield, cost, risk, and income potential.

Updated September 30, 2026

How these figures are calculated: methodology.

Best for

  • WDTEInvestors who want a covered-call overwrite written on the holdings themselves.
  • XYLDInvestors who want index call spreads structured for Section 1256 tax treatment.

Jump to the side-by-side numbers

Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year.

WDTE has lagged XYLD over the trailing twelve months, posting a 15.38% total return against 17.85%. The picture flips over 3 years, though — WDTE has compounded at 15.26% a year, ahead of XYLD at 14.07%. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
SymbolYTD cumulative1Y cumulative3Y annualizedSince Sep 2023Volatility Sharpe Sortino Max drawdown
WDTE12.96%15.38%15.26%14.39%11.3%0.861.08-15.8%
XYLD10.34%17.85%14.07%13.03%10.2%0.861.25-15.5%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of September 30, 2026. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year. “Since Sep 2023” measures every fund from September 19, 2023 — the start of shared available history — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Distribution rate, SEC yield and return of capital

MetricWDTEXYLD
Forward distribution rate30.13%8.57%
Trailing 12-month yield33.45%10.41%
30-day SEC yield-0.75%0.48%
Return of capital92.83%—

Total return (price change plus reinvested distributions) is the Total returns section above. Return of capital is the share of a recent distribution that was not income. A 30-day SEC yield can sit far from the headline distribution rate; both numbers are the fund's own published fields.

Total return against the stated underlying is on WDTE vs SPY.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricWDTEXYLD
Full nameDefiance S&P 500 Weekly Distribution ETFGlobal X S&P 500 Covered Call ETF
IssuerDefiance ETFsGlobal X
Last Close$28.72 as of September 30, 2026$41.52 as of September 30, 2026
Distribution rate30.13%8.57%
Trailing 12-month yield33.45%10.41%
30-day SEC yield-0.75%0.48%
Distribution Safety Score™ 7279
Safety-Adjusted Yield 21.69%6.77%
Expense ratio1.03%0.60%
AUM$72.9M$3.40B
Distribution frequencyWeeklyMonthly
Underlying indexS&P 500Cboe S&P 500 BuyWrite Index
ObjectiveActively managed fund that seeks weekly income while maintaining indirect exposure to the S&P 500 Index, subject to a limit on potential gains from increases in the index.Seeks monthly income by tracking the Cboe S&P 500 BuyWrite Index, investing at least 80% of total assets in the index securities or instruments with similar economic characteristics.
Asset classEquityEquity
Inception date09/18/202306/21/2013
Beta0.79320.39
Last dividend$0.1664 declared, pays 10/02/2026$0.2964
Ex-dividend date10/01/2026 upcoming09/21/2026

Bottom lineChoose WDTE if you want a covered-call overwrite written on the holdings themselves. Choose XYLD if you want index call spreads structured for Section 1256 tax treatment. WDTE and XYLD both use option or derivative overlays. Their tradeoff is the underlying exposure, how each option strategy is implemented, and the yield each targets; either overlay can limit upside participation, so neither offers uncapped price exposure.

How the risk works

Read this before the income numbers below: the strategy mechanics on this page shape what those payouts can cost you.

  • Capped upside and premium dependence. WDTE and XYLD generate income by selling options, which trades away part of a strong rally in exchange for premium. Distributions can include return of capital, and a payout the underlying assets cannot sustain shows up as NAV erosion over time — the big yield number is not free.

Learn the mechanics: Return of capital, explained · NAV erosion, explained

Model this comparison:
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Income calculator

See how much monthly income a hypothetical investment would generate in each ETF at current yields.

Defiance ETFs
ETFs88
Total AUM$11.3B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Defiance ETFs is known for offering specialized and thematic investment strategies that cater to niche market segments and alternative income approaches. The issuer's lineup spans income-focused funds, leveraged strategies, combinations of leverage with income generation, and thematic products tied to emerging trends and sectors. Defiance emphasizes non-traditional and differentiated strategies rather than broad-based index exposure, appealing to investors seeking targeted exposure beyond conventional ETF offerings.

See our curated list of related YouTube videos on WDTE.

See all Defiance ETFs ETFs
Global X
ETFs117
Total AUM$94.9B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Global X is known for developing thematic and alternative investment ETFs with a strong emphasis on income-generating strategies. Their 37-fund lineup spans diverse categories including covered call funds, SuperDividend income products, digital assets, commodities, and sector-specific investments, alongside traditional bond and risk-managed income options. Notable tickers like DIV, MLPA, and BCCC reflect their specialization in high-yield and alternative income strategies, positioning them as a provider focused on investors seeking yield-oriented and thematically-driven exposure.

See our curated list of related YouTube videos on XYLD.

See all Global X ETFs

Want to go deeper?

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Quick verdict

WDTE (Defiance S&P 500 Weekly Distribution ETF) and XYLD (Global X S&P 500 Covered Call ETF) are both dividend ETFs, but they take different approaches.

WDTE offers the higher yield at 30.13% vs 8.57% for XYLD. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

XYLD is cheaper with an expense ratio of 0.60% compared to 1.03%.

They have different reference exposures: WDTE is linked to S&P 500 while XYLD is linked to Cboe S&P 500 BuyWrite Index, which means their performance drivers differ.

XYLD is the larger fund by assets ($3.40B), but assets alone do not establish trading costs or liquidity.

Who should choose each?

Choose WDTE

Defiance S&P 500 Weekly Distribution ETF

  • Want a covered-call overwrite on the stocks the fund holds.
  • Want to maximize current income — WDTE distributes roughly 30.13% from selling options premium, vs 8.57% for XYLD.
  • Are comfortable with an options-income strategy — a large payout in exchange for capped upside.

Choose XYLD

Global X S&P 500 Covered Call ETF

  • Want index call spreads structured for Section 1256 tax treatment.
  • Are comfortable with an options-income strategy — a large payout in exchange for capped upside.
  • Want to keep costs low — a 0.60% expense ratio vs 1.03% for WDTE.
  • Prefer lower volatility — a beta of 0.4 vs 0.8 for WDTE.

Not sure? Use the income calculator and snapshot above to weigh these trade-offs against your own goals.

Deep dive

Yield & income

On a $10,000 investment, WDTE would generate roughly $57.94 cash per distribution, while XYLD would produce $71.42 cash per distribution, at current distribution rates.

WDTE yield30.13%
XYLD yield8.57%
Cash diff on $10K$13.47

Cost & efficiency

Over 10 years on $10,000, WDTE would cost approximately $1,030 in fees vs $600 for XYLD (simplified, not compounded). The $430.00 difference may be offset by yield or performance.

WDTE ER1.03%
XYLD ER0.60%

Strategy & risk

Both WDTE and XYLD wrap S&P 500 with options-based income overlays (options and covered call). The practical differences are yield target, fee structure, and issuer track record — not the underlying mechanic. Beta is 0.7932 for WDTE and 0.39 for XYLD, making XYLD the less volatile of the two by this measure.

WDTE beta0.7932
XYLD beta0.39

Fund details

WDTE is managed by Defiance ETFs (launched 09/18/2023) with $72.9M in assets. XYLD is managed by Global X (launched 06/21/2013) with $3.40B in assets.

WDTE AUM$72.9M
XYLD AUM$3.40B
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Frequently asked questions

What is the current distribution rate for WDTE and XYLD?

WDTE currently distributes 30.13% and XYLD 8.57%, based on fund data updated September 2026. Distribution rate moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is WDTE or XYLD better for dividend income?

It depends on your goals. WDTE currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between WDTE and XYLD?

Both WDTE (Defiance S&P 500 Weekly Distribution ETF) and XYLD (Global X S&P 500 Covered Call ETF) track S&P 500 with options-based income strategies — the labels "options" and "covered call" describe closely related mechanics (covered calls are a specific type of options strategy). The real differences show up in yield target (30.13% vs 8.57%), expense ratio (1.03% vs 0.60%), and issuer (Defiance ETFs vs Global X).

Can I hold both WDTE and XYLD?

You can, but expect significant overlap. Both funds use options-based income strategies on S&P 500, so holding them together gives you two wrappers around effectively the same exposure — not true diversification. Weigh issuer, fee, and yield differences rather than treating them as complementary.

Is WDTE or XYLD safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — XYLD scores 79, WDTE scores 72, so XYLD's payout currently looks the more resilient of the two. XYLD has also shown lower price volatility (beta 0.39 vs 0.79 for WDTE). No score makes an investment risk-free — treat this as a screening signal, not a guarantee, and the leverage, options-income, or crypto caveats flagged on this page apply regardless of score.

Which has lower fees, WDTE or XYLD?

WDTE has an expense ratio of 1.03% while XYLD charges 0.60%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in WDTE vs XYLD generate?

At current rates, $10,000 in WDTE would generate roughly $57.94 cash per distribution ($3,013.00 annually). The same in XYLD would produce about $71.42 cash per distribution ($857.00 annually).

Which has performed better historically, WDTE or XYLD?

WDTE has lagged XYLD over the trailing twelve months, posting a 15.38% total return against 17.85%. The picture flips over 3 years, though — WDTE has compounded at 15.26% a year, ahead of XYLD at 14.07%. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

WDTE vs XYLD — at a glance

Generated September 26, 2026.

The two also differ sharply in age, size, and risk profile: XYLD has been operating since 06/21/2013 with $3.40B in assets, while WDTE is newer (09/18/2023) and carries $72.9M.

How they differ

The clearest difference is yield and income frequency. That gap reflects two distinct option strategies: WDTE actively rolls short-dated 0DTE (same-day expiration) calls to capture rapid decay, whereas XYLD implements a mechanical covered-call index with longer holding periods and caps upside.

The second major difference is fees and asset base.

A third distinction lies in downside sensitivity. WDTE has a beta of 0.7932, while XYLD's beta is 0.39, reflecting that XYLD's call-selling structure dampens equity exposure more aggressively. WDTE's higher beta signals it retains closer alignment to underlying S&P 500 moves, even as its weekly call rolls create different risk mechanics.

Who each is best for

  • WDTE: Fits investors with high income needs and short time horizons who are comfortable with active fund management and weekly rebalancing of a call overlay. Designed for allocations where maximum distribution frequency and yield take priority over capital appreciation or expense efficiency.
  • XYLD: Fits investors seeking a balance of income and equity-like exposure, with tolerance for mechanical call caps on gains and preference for simpler index-based mechanics, lower fees, and an established operational track record. Suited for income allocations where consistency and cost efficiency matter alongside yield.

Key risks to know

  • NAV erosion at extreme distribution yields. WDTE's 30.13% distribution rate far exceeds typical S&P 500 total returns. Sustaining this payout likely requires return-of-capital treatment or NAV decay; investors should investigate whether this pattern persists across quarters and years.
  • 0DTE option roll risk (WDTE specific). Rolling calls on same-day expirations exposes WDTE to gap risk, slippage during market dislocations, and execution uncertainty on opens and closes, especially during volatile sessions.
  • Smaller asset base and newer vintage (WDTE specific). $72.9M and 3 years create exposure to fund closure, redemption pressure, or strategy drift if inflows stall or market conditions shift substantially.
  • Option strategy sensitivity to realized volatility and dividend yield. Both funds depend on the level and term structure of implied volatility; if volatility collapses or dividend yields on the S&P 500 rise unexpectedly, call premiums and distribution sustainability could decline. Neither fund replicates owning the S&P 500 outright: both trade upside for income, and past performance does not predict future results, especially given WDTE's short operating history and both funds' sensitivity to volatility regimes.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

Learn the method

The metrics behind this comparison, explained in the Academy.

How covered-call funds work How to read a fund's stats The covered-call opportunity cost

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These comparisons follow the Dividend Vision methodology.