Covered call exchange-traded funds (ETFs) trade upside price appreciation for above-average income, often yielding far more than traditional dividend ETFs.
Their appeal became especially clear after the 2022 bear market, when elevated volatility boosted payouts and helped these funds outperform broader equity benchmarks.
But this isn’t a free lunch. Covered call ETFs come with higher fees, trade-offs, and added complexity, so it’s worth understanding how they work before investing.
Best covered call ETFs to consider
Not all covered call ETFs are built the same. Some follow strict indexes; others are actively managed. Some prioritize income above all else; others try to balance yield with growth potential. For each fund below, we cover…
