How do covered call ETFs generate income?

Covered call ETFs sell call options against their stock holdings, collecting option premiums as income. This premium is distributed to shareholders as yield. The trade-off is that upside is capped because if stocks rise above the strike price, the gains belong to the option buyer.

Is JEPI a good investment?

JEPI is popular for its combination of attractive yield (typically 7-9%), lower volatility than the S&P 500, and monthly distributions. It works well for income-focused investors, but will underperform in strong bull markets due to its capped upside from option selling.

What is the yield on covered call ETFs?

Covered call ETFs typically yield 8-12% depending on the fund and market conditions. QYLD tends to offer the highest yield, while JEPI balances yield with better total return potential. Higher yields generally correspond to more upside being sacrificed.

Do covered call ETFs lose money in bear markets?

Yes, covered call ETFs can lose money in bear markets because the option premium only provides a partial buffer. If stocks drop significantly, the premium collected is not enough to offset losses. They do tend to lose less than pure equity positions due to the income cushion.

Covered Call ETFs

103 ETFs · AUM: $128.82B

Covered call ETFs generate income by holding a portfolio of stocks or index positions while systematically selling call options against those holdings. This strategy collects option premium as income but caps upside potential, creating a trade-off between higher current yield and reduced capital appreciation. These funds have surged in popularity among income-focused investors seeking yields that far exceed traditional dividend funds.

Leading covered call ETFs include JEPI (JPMorgan Equity Premium Income ETF), which combines a defensive equity portfolio with equity-linked notes to generate income with reduced volatility, XYLD (Global X S&P 500 Covered Call ETF), which writes at-the-money calls on the S&P 500, and QYLD (Global X NASDAQ 100 Covered Call ETF), which applies the same strategy to the NASDAQ-100 for higher yields.

Covered call ETFs are best suited for income-focused investors who are comfortable sacrificing some upside in exchange for consistent monthly distributions. JEPI has become one of the most popular ETFs overall due to its attractive yield and reduced volatility profile. However, in strong bull markets, covered call ETFs will significantly underperform their underlying indices because the sold options cap gains. These funds work well in flat or moderately rising markets where the premium income can boost total returns. Investors should understand the return profile trade-offs before allocating a significant portion of their portfolio.

103 ETFs found

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Symbol▼	Fund Name▼	Issuer	AUM▼	Expense Ratio▼	Price▼	YTD▼
JEPI	JPMorgan Equity Premium Income ETF	J.P. Morgan	$45.17B	0.35%	$57.23	+0.14%
JEPQ	JPMorgan Nasdaq Equity Premium Income ETF	J.P. Morgan	$36.91B	0.35%	$58.96	+1.50%
QYLD	Global X - Nasdaq 100 Covered Call ETF	Global X	$8.31B	0.60%	$17.87	+1.25%
DIVO	Amplify CWP Enhanced Dividend Income ETF	Amplify	$6.88B	0.56%	$45.35	+2.20%
GPIQ	Goldman Sachs Nasdaq-100 Premium Income ETF	Goldman	$3.62B	0.35%	$54.86	+4.09%
GPIX	Goldman Sachs S&P 500 Premium Income ETF	Goldman	$3.56B	0.35%	$53.75	+1.95%
XYLD	Global X - S&P 500 Covered Call ETF	Global X	$3.09B	0.60%	$40.06	-1.40%
FTHI	First Trust BuyWrite Income ETF	First Trust	$2.15B	0.76%	$23.57	-0.04%
ACIO	Aptus Collared Income Opportunity ETF	Aptus	$2.14B	0.79%	$45.00	+3.00%
TLTW	iShares 20+ Year Treasury Bond BuyWrite Strategy ETF	iShares	$1.91B	0.35%	$22.45	-0.55%
RYLD	Global X - Russell 2000 Covered Call ETF	Global X	$1.31B	0.60%	$15.36	+0.33%
IDVO	Amplify CWP International Enhanced Dividend Income ETF	Amplify	$1.14B	0.65%	$42.27	+10.51%
BUYW	Main BuyWrite ETF	Inspire	$1.14B	1.13%	$14.32	+0.21%
BALI	iShares U.S. Large Cap Premium Income Active ETF	iShares	$1.09B	0.35%	$32.69	+3.31%
ULTY	YieldMax Ultra Option Income Strategy ETF	YieldMax	$876.9M	1.40%	$31.77	-14.09%
QDTE	Roundhill Investments - Innovation-100 0DTE Covered Call Strategy ETF	Roundhill Investments	$845.9M	0.97%	$29.97	-2.50%
FTQI	First Trust Nasdaq BuyWrite Income ETF	First Trust	$809.5M	0.76%	$21.08	+1.59%
FEPI	REX FANG & Innovation Equity Premium Income ETF	Rexshares	$639.1M	0.65%	$43.02	-5.60%
WTPI	WisdomTree Equity Premium Income Fund	WisdomTree	$459.7M	0.44%	$32.69	+0.09%
NBOS	Neuberger Berman Option Strategy ETF	Neuberger Berman	$441.7M	0.59%	$27.50	+1.46%
AIPI	REX AI Equity Premium Income ETF	Rexshares	$383.1M	0.65%	$35.67	-10.84%
SLVO	UBS AG ETRACS Silver Shares Covered Call ETN	ETRACS	$346.4M	0.65%	$86.48	-13.22%
PBP	Invesco S&P 500 BuyWrite ETF	Invesco	$332.1M	0.29%	$22.47	-1.53%
HEDG	Equable Shares Hedged Equity ETF	Equable	$301.0M	0.92%	$29.72	+1.25%
USOI	UBS AG ETRACS Crude Oil Shares Covered Call ETNs due April 24, 2037	ETRACS	$300.8M	0.85%	$54.58	+11.91%
XDTE	Roundhill Investments - S&P 500 0DTE Covered Call Strategy ETF	Roundhill Investments	$287.2M	0.97%	$38.90	-1.69%
TCAL	T. Rowe Price Capital Appreciation Premium Income ETF	T. Rowe	$281.9M	0.34%	$22.51	-3.56%
LQDW	iShares Investment Grade Corporate Bond BuyWrite Strategy ETF	iShares	$270.1M	0.34%	$24.10	-1.73%
IVVW	iShares S&P 500 BuyWrite ETF	iShares	$262.4M	0.25%	$44.56	-2.15%
PAPI	Parametric Equity Premium Income ETF	Parametric	$255.9M	0.29%	$26.70	+3.40%
SCEP	Sterling Capital Hedged Equity Premium Income ETF	Sterling Capital	$214.7M	0.65%	$24.90	+0.54%
LDRX	SGI Enhanced Market Leaders ETF	Summit Global Investments	$200.6M	0.50%	$33.98	+3.35%
DJIA	Global X - Dow 30 Covered Call ETF	Global X	$168.8M	0.60%	$21.39	-3.04%
GLDI	UBS AG ETRACS Gold Shares Covered Call ETNs due February 2, 2033	ETRACS	$165.0M	0.65%	$166.00	-3.96%
RDTE	Roundhill Investments - Russell 2000 0DTE Covered Call Strategy ETF	Roundhill Investments	$160.5M	0.97%	$29.07	-0.95%
MAGY	Roundhill Investments - Magnificent Seven Covered Call ETF	Roundhill Investments	$160.3M	1.28%	$45.88	-13.54%
YBTC	Roundhill Investments - Bitcoin Covered Call Strategy ETF	Roundhill Investments	$159.4M	0.96%	$22.01	-21.97%
HSPX	Global X S&P 500 Covered Call ETF	Global X	$147.9M	—	—	—
QYLG	Global X - Nasdaq 100 Covered Call & Growth ETF	Global X	$139.2M	0.35%	$28.42	+4.42%
TPZ	Tortoise Electrification Infrastructure ETF	Tortoise	$129.1M	0.85%	$22.31	+9.03%
HYGW	iShares High Yield Corporate Bond BuyWrite Strategy ETF	iShares	$114.8M	0.69%	$29.25	-2.08%
KLIP	KraneShares KWEB Covered Call Strategy ETF	KraneShares	$114.3M	0.95%	$26.31	-11.23%
FRGN	Horizon International Equity ETF	Horizon Funds	$93.8M	0.75%	$29.37	+14.23%
VEGA	AdvisorShares STAR Global Buy-Write ETF	AdvisorShares	$82.9M	1.25%	$51.07	+4.06%
YETH	Roundhill Investments - Ether Covered Call Strategy ETF	Roundhill Investments	$75.8M	0.96%	$11.70	-31.75%
XYLG	Global X - S&P 500 Covered Call & Growth ETF	Global X	$63.6M	0.35%	$27.89	+1.49%
PLGI	PL Growth and Income ETF	PL	$56.0M	1.25%	$24.87	-0.54%
SPIN	State Street US Equity Premium Income ETF	SPDR	$55.6M	0.25%	$32.15	-0.85%
PSTR	Peakshares Sector Rotation ETF	Peak	$51.5M	1.07%	$29.91	+3.28%
PRMAF	Purpose Multi-Asset Income Fund	Purpose Investments	$49.0M	0.99%	—	—

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Covered Call ETFs

Frequently Asked Questions