"However, alternatives like JPMorgan Equity Premium Income ETF (NYSEARCA:JEPI ) NEOS S&P 500 High Income ETF (BATS:SPYI), NEOS NASDAQ-100 High Income ETF (NASDAQ:QQQI), and Roundhill S&P 500 Target 20 Managed Distribution ETF (NYSEARCA:XPAY) have higher yields and are worth looking into. These ETFs have been remarkably successful due to the broader market rallying continuously over the past four years. That success has drawn in other issuers that have copied the recipe, and they have managed to do it better."
"NEOS S&P 500 High Income ETF (SPYI) The NEOS S&P 500 High Income ETF holds the index and runs an index call-options overlay to generate high income. It concentrates in industries roughly to the same extent as the S&P 500 itself. The differentiator between the SPYI and JEPI is that SPYI is more passive and is a more "standard" covered call ETF based on an index."
"SPYI is also more aggressive than the JEPI, which tries to be more passive and defensive than the broader market. It has a dividend yield of 11.57% paid monthly and an expense ratio of 0.68%, or $68 per $10,000 invested. SPYI has done better than JEPI due to the S&P 500 rallying. It is up 3.37% in the year on top of the yield, whereas JEPI is flat."
Income investors attracted to covered-call ETFs have favored a fund yielding about 8% with limited upside participation. Alternative ETFs such as NEOS SPYI, NEOS QQQI, and Roundhill XPAY target higher yields and have benefited from a four-year market rally. SPYI uses an index call-options overlay, concentrates similarly to the S&P 500, and offers an 11.57% monthly dividend with a 0.68% expense ratio. SPYI has outperformed JEPI year-to-date with a 3.37% price gain on top of yield, aided by heavier technology exposure compared with JEPI's lower tech weighting.
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