Retirees Are Using This ETF to Collect Weekly Income From a Chipmaker Giant

"TSMY generates income by selling call options on Taiwan Semiconductor Manufacturing shares. The fund collects rent (the premium) weekly, but the option buyer captures any price appreciation above the agreed ceiling."

"TSMY has paid distributions every week without interruption since inception. In 2026 alone, weekly payouts have ranged from $0.1049 to $0.2364 per share, reflecting how options premiums fluctuate with TSM's implied volatility."

"The fund moved from larger, less frequent distributions to smaller weekly ones. Total annual income may be comparable, but per-payment figures look dramatically smaller without that context."

"When the underlying stock surges, the fund misses gains above the strike price. TSM has surged, presenting a real problem for the capped upside."

TSMY pays weekly income by selling call options on TSM shares, collecting premiums that become shareholder distributions. This strategy limits potential gains if TSM's price exceeds a certain level. Since inception, TSMY has consistently paid distributions, with amounts varying based on options premiums and TSM's volatility. In 2026, weekly payouts ranged from $0.1049 to $0.2364 per share. The fund transitioned from larger, less frequent distributions to smaller weekly ones, maintaining comparable total annual income but altering per-payment figures significantly. The capped upside presents a risk when TSM's stock surges.

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