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

Covered call ETFs have had a moment in the light, and the JPMorgan Equity Premium Income ETF (NYSE:JEPI) has captured much of that attention. It earned this position through scale, consistency, and a management team that delivered when the strategy was still being proven out. But the covered call category has grown considerably since it became a household name, and some of the most interesting funds in the space are ones that most investors have not yet looked at. 

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

The last point matters a great deal, as all too often there are legitimate criticisms of options-overlay funds and the idea that they can quietly return principal to investors as income even though the underlying share price is eroding. The thing that matters most here is that these ETFs have not done this, which changes the conversation entirely. 

The $100K Comparison 

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. 

Goldman Sachs Nasdaq-100 Premium Income ETF: Nasdaq Upside With an Income Layer

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. This technology concentration explains both the strong NAV appreciation since inception and the 7% YTD return, which leads the group. For investors who want Nasdaq-100 exposure with a meaningful income kicker and can tolerate sector concentration, this is the most compelling of the three. 

Amplify CWP Growth and Income ETF: Selective Covered Calls on a Concentrated Portfolio

With $664 billion under management across 54 holdings, the Amplify CWP Growth and Income ETF has returned a whopping 32.68% over the past year. Rather than applying a uniform overlay to an index, it writes covered calls tactically on individual positions, preserving more upside where the manager expects near-term appreciation. Top holdings include names that are also found on the Goldman side, like NVIDIA, Apple, Alphabet, Microsoft, and Amazon. The 10.19% yield is the highest of these three funds, though the same thing is true for the 0.56% expense ratio, which reflects active management. The payout of 330.59% is worth monitoring as the fund matures, though positive NAV movement since inception suggests the income is not simply returning capital. 

Invesco S&P 500 Equal Weight Income Advantage ETF: Broad and Balanced

The Invesco S&P 500 Equal Weight Income Advantage ETF launched in July 2024 and holds approximately 524 positions that mirror the S&P 500 Equal Weight Index through equity-linked notes and ETFs, along with a layer of options-based income on top. The equal weighting eliminates the mega-cap concentration present in the other two funds, which means that no single stock dominates the portfolio. The yield is 9.18%, the expense ratio is 0.39%, and the YTD return is 4.34%. NAV appreciation since inception of 9.01% is the most modest of the group, consistent with equal-weight equity exposure lagging cap-weighted benchmarks in a market still driven by large technology names. 

Which Fund Fits Which Investor

The Goldman Sachs Nasdaq-100 Premium Income ETF suits investors who want technology-driven growth alongside high monthly income and can tolerate sector concentration. The Amplify CWP Growth and Income ETF fits investors who prefer active management decisions around when and where to cap upside in exchange for premium income. Finally, the Invesco S&P 500 Equal Weight Income Advantage ETF is for investors who want the broadest possible diversification with no single-stock dominance, accepting somewhat lower income in exchange for more evenly distributed equity risk.