3 Covered Call ETFs to Buy for Monthly Income in 2026

1 month ago 14

David Beren

Wed, July 15, 2026 astatine 9:20 AM CDT 7 min read

Quick Read

ISPY delivered a 19% full instrumentality implicit the past year, much than doubling JEPI's 8%, but monthly payouts swung wildly from $0.05 to $1.27.
Covered telephone ETFs headdress SPY upside to money monthly income, but ISPY's regular enactment reset reclaims the ceiling that monthly funds forfeit for 30 days.
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The ProShares S&P 500 High Income ETF (NYSEARCA:ISPY) charges 0.56% a twelvemonth to tally a regular covered telephone programme connected the S&P 500. That is meaningfully much costly than JPMorgan Equity Premium Income ETF (NYSEARCA:JEPI) astatine 0.35% and astir connected par with Global X S&P 500 Covered Call ETF (NYSEARCA:XYLD) astatine 0.60%. The question is whether ISPY's structural plan earns those other ground points.

A close-up changeable of a idiosyncratic successful a acheronian suit typing connected a metallic laptop. Hovering supra the laptop are glowing bluish hexagonal icons, with a ample 'ETF' icon centered. Smaller icons amusement a pastry chart, an upward barroom graph, a dollar sign, stacked money, and a percent symbol. The inheritance is dark.

The taxable present is high-income equity funds that person scale vulnerability into a monthly paycheck done options. Each of the 3 funds does that differently, and the differences are showing up successful 2026 returns, organisation stability, and portfolio complexity.

Why Covered Call Income Is Having a Moment

Yields connected high-income equity ETFs are good supra those of Treasuries oregon dividend indexes, and retirees person noticed. Assets person flowed toward funds that committedness mid-to-high single-digit distributions without abandoning the S&P 500 entirely. The trade-off is capped upside successful beardown bull markets. How each money manages that cap, regular versus monthly, at-the-money versus out-of-the-money, progressive banal enactment versus scale replication, is what separates a bully interest from a wasted one.

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ISPY: Paying Up for a Daily Reset

The ProShares S&P 500 High Income ETF tracks the S&P 500 Daily Covered Call Index, holding agelong S&P 500 vulnerability portion penning one-day-to-expiration telephone options connected the index. That regular reset is the full argument. Traditional covered telephone funds merchantability monthly at-the-money calls and get locked into a ceiling for 30 days. ISPY writes caller out-of-the-money calls each session, truthful a beardown rally connected Tuesday does not headdress Wednesday's upside astatine Monday's onslaught price.

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