Low-Risk 10% Dividend Yield From One Of The Best Option ETFs
This new covered-call fund delivers a monthly yield above 10% while still growing its share price faster than competitors.
Over the past few years, option-income ETFs have exploded in popularity. Some are designed purely for yield, others for growth, and a few attempt to deliver both. Only a handful manage to balance the two without sacrificing long-term returns.
There’s one fund that has started to stand out. It launched in 2024, has already generated a total return near 35%, and continues to deliver consistent monthly income. It’s built around a dynamic options strategy that allows it to participate in rallies while still collecting option premiums when the market cools off.
👉 This ETF provides a dividend yield over 10%, paid out on a monthly basis.
Looking at the performance below, we can see that this new option ETF outpaces alternative choices like YMAX and GPIQ, which I talk about frequently.
Total Return Including All Dividends
New Option ETF: 35.39%
Goldman Sachs Nasdaq-100 Premium Income ETF GPIQ 0.00%↑
YieldMax Universe Fund Of Option Income ETFs YMAX 0.00%↑
In this breakdown, I’ll go through how this fund works, what makes it different from other covered-call ETFs, and the key trade-offs to be aware of before owning it. By implementing these sort of high-yield funds, I’ve been able to build an annual dividend income over $50,000.
👉 Gain Access To The Yieldly Dashboard To Track Your Dividends.
Fund Strategy
This ETF holds roughly $409M in assets spread across 42 positions. The goal is simple: combine capital appreciation with high monthly income.
To achieve this, the portfolio is built around large-cap companies with strong earnings and free cash flow. The holdings are diversified across sectors, but management filters them down to a focused list of 30 to 40 names based on growth potential, performance, and track record. Once selected, covered calls are written directly on those holdings.
The fund is heavily tilted toward technology, which makes up about 41% of assets. So you are likely to see this ETF participate in market rallies over time, unlike other high-yield ETFs.
The top positions includes companies such as:
Nvidia NVDA 0.00%↑
Apple AAPL 0.00%↑
Microsoft MSFT 0.00%↑
Alphabet GOOG 0.00%↑
Amazon AMZN 0.00%↑
The fund writes out-of-the-money covered calls, which leaves room for capital gains while still generating income from option premiums. What separates it from traditional buy-write ETFs is how management adjusts the call writing dynamically. When markets are trending higher, fewer calls are written. When markets are choppy or declining, the call coverage is increased to capture more income.
👉 As a result, this ETF provides a high dividend yield > 10%.
One of the biggest advantages of owning income-focused funds isn’t just the yield itself. It’s what you can do with the cash flow that comes in every month.
When this fund pays out its monthly distributions, investors have a simple choice.
You can spend the income
You can put it back to work.
This is exactly how I manage my own portfolio. The income from my high-yield positions covers the cash flow side, while those monthly payouts are reinvested into companies that can compound over the long run. Lately, I’ve been directing a portion of these dividends toward Amazon and Meta — two growth names that continue to deliver strong earnings momentum and expanding cash flow.
For instance, META 0.00%↑ has huge upside potential right now according to Yieldly.
By doing this, the portfolio essentially becomes self-funding. The high-yield ETFs provide consistent monthly income, which then fuels the purchase of new growth shares. As those growth positions appreciate, they add another layer of total return on top of the income stream.
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