Four Option-Income ETFs Offer Monthly Payouts Above 9%
Four exchange-traded funds using options strategies showed past-year distribution yields ranging from 9.98% to 14.83% based on October 13, 2026 closing prices. The highest yield came from the NEOS Russell 2000 High Income ETF, followed by funds tied to the S&P 500 and Nasdaq-100. The article notes that higher payouts can reflect greater volatility, capped upside, or return of capital, and none of the funds has yet been tested through a full bear market.
The four funds each made twelve payouts over the prior year, with yields calculated from Oct. 13, 2026, closing prices. IWMI, the newest, began trading in June 2024, charges 0.68%, and has distributed $0.50 to $0.66 monthly. SPYI applies a similar approach to the S&P 500, using SPX options and sometimes call spreads to retain limited upside.
Because option premiums rise with market turbulence, the Russell 2000 strategy can generate larger payments than large-cap peers. Yet those payments may include return of capital, and all four funds remain untested by a complete bear market. GPIQ has gained 103% since inception, though the article notes all yield figures look backward and will change.
These funds may appeal to retirees and others seeking monthly cash flow, potentially influencing portfolio choices toward higher-risk, options-based strategies. If payouts include return of capital or decline when volatility falls, some investors could mistake distributions for durable income. Advisers and regulators may face questions about disclosure and suitability, especially since none has experienced a full bear market.