Best Covered Call ETFs (2026)

Which covered-call income fund to hold, and what the yield costs — 10 funds ranked on cost, yield, return, risk and ETFValuer's overall grade.

Updated July 29, 2026

Every figure on this page is recalculated from market data each day, so the ranking reflects current conditions rather than whenever this page was written. Educational content — not financial advice.

Top Picks Right Now

#1
GPIX
Goldman Sachs S&P 500 Premium Income ETF
B 67.5/100
  • cheapest in the group at 0.29%
#2
XYLD
Global X S&P 500 Covered Call ETF
B 66.6/100
  • best risk-adjusted return (Sharpe 1.70)
  • lowest volatility at 7.0%
#3
SPYI
Neos S&P 500(R) High Income ETF
C 63.5/100
  • scores 63.5 on the overall model (grade C)

Ranked by ETFValuer's overall score. Recalculated every day from live market data — these positions change as the underlying numbers move.

At a Glance

Cheapest
GPIX
0.29%
Highest yield
JEPQ
9.95%
Best risk-adjusted
XYLD
Sharpe 1.70
Largest
JEPI
$44.7B
Shallowest drawdown
JEPI
-13.3%

Each superlative is measured within this group of 10 funds, not across the whole market.

All 10 Funds Ranked

FundCategoryCostYield1Y3YVolatilityMax DDSharpeAUMScoreGrade
1 GPIX*Goldman Sachs S&P 500 Premium Income ETFCovered Call / Income0.29%1.58%+17.9%11.0%-17.5%1.18$4.7B67.5B
2 XYLDGlobal X S&P 500 Covered Call ETFCovered Call / Income0.60%9.29%+16.9%+38.6%7.0%-15.5%1.70$3.2B66.6B
3 SPYINeos S&P 500(R) High Income ETFCovered Call / Income0.68%1.46%+15.8%+51.8%10.6%-16.5%1.03$10.4B63.5C
4 RYLDGlobal X Russell 2000 Covered Call ETFCovered Call / Income0.60%6.81%+21.7%+26.3%10.6%-19.1%1.57$1.4B63.2C
5 QYLDGlobal X NASDAQ 100 Covered Call ETFCovered Call / Income0.60%9.44%+17.7%+41.0%10.9%-19.1%1.17$8.4B62.8C
6 JEPQJPMorgan Nasdaq Equity Premium Income ETFCovered Call / Income0.35%9.95%+15.7%+61.2%14.2%-20.1%0.75$40.7B62.0C
7 JEPIJPMorgan Equity Premium Income ETFCovered Call / Income0.35%8.11%+8.6%+30.9%8.1%-13.3%0.45$44.7B60.8C
8 QQQI*NEOS NASDAQ-100(R) High Income ETFCovered Call / Income0.68%0.09%+13.8%15.9%-20.0%0.55$13.1B52.8C
9 NUSINEOS Nasdaq-100 Hedged Equity Income ETFCovered Call / Income0.68%7.61%+12.6%11.2%-15.2%0.68$324M52.6C
10 TLTWiShares 20+ Year Treasury Bond Buywrite Strategy ETFCovered Call / Income0.35%9.86%+6.6%+4.3%7.6%-15.2%0.21$1.9B50.1C

* Marked funds have under three years of trading history. Their 3-year return is unavailable, and their max drawdown covers a shorter window than the rest of the table — a shallow figure there reflects a short life, not proven resilience. Max DD is the deepest peak-to-trough fall over the measurement window. Sharpe ratio measures return per unit of volatility — higher is better. Every figure is recalculated daily.

What Makes a Good Fund Here

Covered-call funds generate very high distributions by selling away their own upside. The yield is real, but it is funded partly by capping gains in rising markets — these funds typically lag the index they write options on over long periods, while cushioning modest declines.

The ETFValuer score blends trailing return, risk-adjusted return, expense ratio, maximum drawdown, fund size and volatility, each percentile-ranked against the full tracked universe, into a single 0-100 figure graded A+ to F. It is a systematic summary of past data, not a forecast — read it alongside the individual columns rather than instead of them.

Head-to-Head Comparisons

Full metric-by-metric breakdowns for the closest calls in this group.

Frequently Asked Questions

What is the best covered call ETF?

GPIX ranks highest of the 10 covered-call funds tracked, scoring 67.5 (B). The highest distribution is JEPQ at 9.95%, though a higher payout generally means more upside surrendered.

Is the high yield on covered call ETFs sustainable?

The distribution comes from option premium, which varies with market volatility, so it fluctuates rather than being fixed. The more important question is total return: these funds have generally trailed a plain index fund over full market cycles, because they keep the downside and sell the upside.

Are covered call ETFs good for retirement?

They deliver high current income, which suits some retirees, but the trade-off is weaker long-term capital growth. That matters more the longer the retirement is expected to last.

Compare any of these funds directly

Side-by-side metrics, holdings overlap and return correlation for any pair.

Other Rankings