Forget JEPI: These 3 Covered Call ETFs Yield Over 10% With Less NAV Erosion

"The Goldman Sachs Nasdaq-100 Premium Income ETF launched in October 2023 and currently manages roughly $3.72 billion, and has returned 36.36% over the past year, including dividends. It writes covered calls against a portfolio of Nasdaq-100 stocks, including big names like NVIDIA, Apple, Microsoft, Amazon, and Alphabet."

"Three of these funds stand out for a reason that goes beyond yield: the Goldman Sachs Nasdaq-100 Premium Income ETF, the Amplify CWP Growth and Income ETF, and the Invesco S&P 500 Equal Weight Income Advantage ETF all pay monthly, yield above 9%, and all three have seen positive NAV movement since inception."

"Most covered call funds carry a quiet risk that does not show up in the yield figure: the NAV slowly declines as distributions are paid out, meaning that investors are effectively receiving their own capital back as monthly installments."

Covered call ETFs have gained popularity, particularly the JPMorgan Equity Premium Income ETF (JEPI). Other notable funds include Goldman Sachs Nasdaq-100 Premium Income ETF (GPIQ), Amplify CWP Growth and Income ETF (QDVO), and Invesco S&P 500 Equal Weight Income Advantage ETF (RSPA). These funds yield above 9% and have shown positive NAV movement since inception. Unlike many covered call funds, these ETFs do not erode principal, making them more appealing to investors seeking income without capital loss.

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