Covered Call ETFs Guide

Covered call ETFs automatically implement the covered call strategy, providing high yields with less work. Here's what you need to know.

Top Covered Call ETFs

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QYLD - Global X Nasdaq 100 Covered Call ETF

  • Index: Nasdaq-100
  • Strategy: Monthly ATM calls
  • Yield: ~11-12%
  • Pros: High yield, monthly income
  • Cons: Caps all upside, underperforms in bull markets

    • XYLD - Global X S&P 500 Covered Call ETF

  • Index: S&P 500
  • Strategy: Monthly ATM calls
  • Yield: ~10-11%
  • Pros: Diversified, high yield
  • Cons: Same limitations as QYLD

    • JEPI - JPMorgan Equity Premium Income ETF

  • Index: S&P 500 (active selection)
  • Strategy: ELN + covered calls
  • Yield: ~7-9%
  • Pros: Some upside capture, lower volatility
  • Cons: Lower yield, more complex structure

    • JEPQ - JPMorgan Nasdaq Equity Premium Income ETF

  • Index: Nasdaq-100 (active selection)
  • Strategy: Similar to JEPI
  • Yield: ~9-11%
  • Pros: Tech exposure with income
  • Cons: Newer, less track record

    • ETFs vs. DIY Covered Calls

    | Factor | ETFs | DIY | ControlNoneFull EffortNoneModerate UpsideCappedCan adjust Tax efficiencyLowerHigher | Customization | None | Full |

    When to Use Covered Call ETFs

  • You want passive income with no effort
  • You're okay giving up all upside
  • You prefer simplicity over optimization