Best Covered Call ETFs

Every "best covered call ETFs" list you'll find ranks funds by yield. That's the wrong metric. A fund paying 130% annually while destroying 83% of its share price since inception is not one of the best covered call ETFs — it's one of the worst. The correct way to rank covered call ETFs is by total return, NAV preservation, and income sustainability. That's exactly what our free covered call ETF grader does — every fund receives an A-F grade based on five weighted factors, updated every market day. What follows is our editorial analysis of the funds currently earning top grades.

As of March 2026, the covered call ETF universe spans over 90 funds with more than $147 billion in combined assets. Of the 30 funds we track closely, only a handful earn Grade A or B ratings — meaning they have demonstrated the ability to pay consistent income without eroding capital. These are the funds worth owning. The rest range from mediocre to genuinely wealth-destroying.

Best Covered Call ETFs — Grade A

CHPY — Sector (Grade A, Score 4.45)
CHPY is the highest-scoring fund in our entire tracked universe as of March 2026. A sector-focused covered call ETF, it has delivered the rare combination of significant NAV growth (+36.5% since inception) alongside strong income generation — a 37% TTM yield with zero reinvestment needed. The share price has grown substantially while distributions have been consistent and genuinely additive. This is what a Grade A covered call ETF looks like: income that doesn't come at the cost of your capital.

GPIQ — Nasdaq 100 (Grade A, Score 4.10)
GPIQ is a Goldman Sachs Nasdaq 100 covered call ETF launched in October 2023 using an out-of-the-money options strategy. Its share price has grown nearly 29% since inception while paying consistent income — one of the strongest NAV preservation records in the Nasdaq 100 category. With $3.1 billion in AUM and a low 0.29% expense ratio, GPIQ represents the new generation of efficiently designed covered call ETFs that have improved dramatically on older at-the-money strategies. Zero reinvestment required.

GPIX — S&P 500 (Grade A, Score 4.05)
GPIX is GPIQ's S&P 500 counterpart — same Goldman Sachs out-of-the-money approach, same launch date, similar results. Share price up nearly 29% since inception, zero NAV erosion, $3.2 billion AUM, 0.29% expense ratio. For investors who want S&P 500 exposure with income and genuine capital preservation, GPIX is currently the top-rated fund in its category. Its lower yield (~8.6%) reflects the more conservative options strategy, but the total return profile is exceptional for a covered call ETF.

Best Covered Call ETFs — Grade B

DIVO — S&P 500 (Grade B, Score 3.90)
DIVO is one of the most unique funds in the covered call ETF space. Rather than selling calls on 100% of its portfolio, DIVO actively manages a concentrated portfolio of 20-25 quality dividend-growth stocks and selectively writes covered calls on only a portion of its holdings. This approach has produced extraordinary long-term results — NAV has grown over 79% since inception in December 2016, making it one of the best total return covered call ETFs available. The yield is lower (~6.5%) but the capital appreciation more than compensates. DIVO is the gold standard for investors who want income without sacrificing long-term growth potential.

JEPI — S&P 500 (Grade B, Score 3.70)
JEPI is the largest covered call ETF in the world with over $45 billion in assets — and it has earned that status by consistently delivering on its promise. The share price has grown 13.3% since inception in May 2020 while paying consistent monthly income averaging 8-9% annually. JEPI uses equity-linked notes to implement an out-of-the-money S&P 500 covered call strategy, which captures more upside than traditional at-the-money funds. Zero reinvestment required. For investors who want a battle-tested, liquid, institutionally managed covered call ETF, JEPI remains one of the strongest choices in the category.

QQQI — Nasdaq 100 (Grade B, Score 3.65)
QQQI is the NEOS Nasdaq 100 covered call ETF launched in January 2024 and is one of our six portfolio funds. It uses a spread-based options strategy that preserves significantly more upside than traditional covered call approaches. With $8.9 billion in AUM and a 16% TTM yield, QQQI offers compelling income with zero NAV erosion since launch. The fund benefits from the higher volatility of Nasdaq 100 options, which generate larger premiums — but uses a structure designed to avoid the share price erosion that has plagued older Nasdaq covered call funds like QYLD.

SPYI — S&P 500 (Grade B, Score 3.60)
SPYI is the NEOS S&P 500 covered call ETF and one of the most discussed funds in the income investing community. With $8.1 billion in AUM and a 13.5% TTM yield, SPYI targets investors who want both S&P 500 exposure and high monthly income. Its spread-based options strategy has maintained near-zero NAV erosion since inception in August 2022. SPYI also has a tax advantage — its use of Section 1256 index options results in a 60/40 long-term/short-term capital gains split on a portion of distributions, reducing the tax burden in taxable accounts compared to many competitors.

Why Most Covered Call ETF "Best" Lists Are Wrong

The majority of covered call ETF rankings you'll find online lead with yield. ULTY pays 128% annually. YMAX pays 86%. QDTE pays 50%. These numbers look extraordinary — until you check NAV erosion. ULTY has lost over 83% of its share price since inception. YMAX has lost over 60%. QDTE launched in March 2024 and has already lost nearly 40% of its share price. The income these funds pay is primarily capital being returned to investors — not genuine investment returns.

Our grading system weights capital preservation at 25% — the single highest-weighted factor — specifically because NAV erosion is the most consequential long-term variable in covered call ETF performance. A fund that maintains its share price while paying income is fundamentally different from one that gradually liquidates itself in the form of monthly distributions. See the full covered call ETF list for complete data on all 30 tracked funds, or visit our live dashboard to filter by Grade A and B funds instantly.

The best covered call ETF for you depends on your specific investment goal. For maximum monthly income with zero capital erosion, the current Grade A and B funds — particularly SPYI, QQQI, GPIX, GPIQ, DIVO, and JEPI — represent the strongest options across multiple categories. For the best income-to-NAV-stability balance, DIVO stands apart with its selective covered call approach and exceptional long-term NAV growth. For the highest yield with demonstrated zero erosion, CHPY and QQQI lead the field in their respective categories as of March 2026.

For investors prioritizing defensiveness and low volatility, CSHI — a Treasury covered call ETF — provides modest income with near-zero market correlation and minimal drawdown risk. It won't make you rich but it won't keep you up at night either. For specialty exposure, IAUI brings covered call income to gold — capturing option premium income from an asset class that traditionally pays none while maintaining strong NAV performance since launch.

The most important thing to remember is that grades change. A fund earning Grade A today may show deteriorating metrics in a different market environment. Our dashboard updates every market day so the rankings you see always reflect current data. Use the Grade A and B filter on our free grader to see exactly which funds currently earn top ratings — and check back regularly as market conditions evolve. For investors specifically focused on income generation, our covered call ETFs for income guide covers how to build and maintain a sustainable income portfolio using these funds.

⚠️ Disclaimer: CoveredCallETFHQ is for informational purposes only and does not constitute financial advice. All data sourced from Yahoo Finance. Grades and scores reflect our proprietary methodology and should not be used as the sole basis for investment decisions. Past performance does not guarantee future results. Always consult a qualified financial advisor before investing.