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10 Monthly Dividend Covered Call ETFs and ETNs You Can Count On

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·7 min read
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In this article, we will be taking a look at 10 monthly dividend covered call ETFs you can count on. To skip our detailed analysis of dividend investing, you can go directly to see the 5 Monthly Dividend Covered Call ETFs and ETNs You Can Count On.

While exchange-traded funds (ETFs) and exchange-traded notes (ETNs) bear some similarities, such as the fact that both track an underlying asset, they also differ in some aspects. For instance, a major difference between the two is that investing in ETFs implies that you will be investing in a fund that holds the asset it is tracking, while investing in ETNs is more like investing in bonds - since ETNs are unsecured debt notes issued by institutions. However, both investments carry their own risks and benefits at the end of the day, just like any other investment.

Covered call ETFs and ETNs are just another type of the above. These options offer investors with even more income by writing options on the ETF's own securities. Investors thus do not have to participate or engage with the market directly. According to ETF.com, these ETFs are becoming more valuable, with their assets under management as recorded this year standing at $5.85 billion.

A Mackenzie Investments ETF Report published this year bears witness to the above. The report mentioned that about $10 billion worth of cash inflows into international ETFs was recorded in the financial year of 2020. Additionally, about $7 trillion was recorded as making up the global ETF assets under management, as of September 2020, while the number of ETFs also grew exponentially, standing at over 8000+ by the end of last year. In US-listed ETFs alone, the assets under management were reported to stand at $5.4 trillion, for about 1364 ETFs listed on US markets. The report also mentioned that ETF market growth in the US is far ahead of the same in Canada.

Amid rising uncertainty, investors are flocking to dividend-paying ETFs in addition to the usual dividend stocks like Altria Group, Inc. (NYSE: MO), Medtronic plc (NYSE: MDT), Abbott Laboratories (NYSE: ABT), and Moody's Corporation (NYSE: MCO).

Investing has become difficult by the day, even for the smart money. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

Photo by NeONBRAND on Unsplash

Without further ado, let's take a look at the 10 monthly dividend covered call ETFs and ETNs you can count on.

Our Methodology

We have selected monthly dividend covered call ETFs, ETNs, and regular dividend ETFs and ETNs with yields going up to 20%. For each list item, we have mentioned its yield, ranking them from the lowest to the highest dividend yield. We have also mentioned each fund's performance relative to the S&P 500 in the past year.

Monthly Dividend Covered Call ETFs and ETNs You Can Count On

10. Amplify ETF Trust - Amplify CWP Enhanced Dividend Income ETF (NYSE: DIVO)

Dividend Yield: 5%

Amplify ETF Trust - Amplify CWP Enhanced Dividend Income ETF (NYSE: DIVO) invests in stocks of companies across diversified sectors, both directly and through derivates. The fund aims to benchmark the performance of its portfolio against the CBOE S&P 500 BuyWrite Index and the Dow Jones Industrial Average Index. It ranks 10th on our list of monthly dividend covered call ETFs and ETNs you can count on.

In the past year, the price return for Amplify ETF Trust - Amplify CWP Enhanced Dividend Income ETF (NYSE: DIVO) was 19.17%, compared to the 33.52% price return of the S&P 500. The total return for the fund was 23.67%, compared to the 10.40% total return of the S&P 500.

Like Altria Group, Inc. (NYSE: MO), Medtronic plc (NYSE: MDT), Abbott Laboratories (NYSE: ABT), and Moody's Corporation (NYSE: MCO), Amplify ETF Trust - Amplify CWP Enhanced Dividend Income ETF (NYSE: DIVO) is a notable investment pick today.

9. Global X NASDAQ 100 Covered Call & Growth ETF (NASDAQ: QYLG)

Dividend Yield: 5.6%

Global X NASDAQ 100 Covered Call & Growth ETF (NASDAQ: QYLG), an ETF investing in American public equity markets, is next on our list of monthly dividend covered call ETFs and ETNs you can count on. The ETF ranks 9th and invests directly and through derivatives in stocks of companies in diversified sectors.

In the past year, the price return for Global X NASDAQ 100 Covered Call & Growth ETF (NASDAQ: QYLG) was up 16.19% compared to a 29.83% increase for the price return of the S&P 500. The ETF's total return was 23.15%, compared to a 10.40% total return for the S&P 500. Global X NASDAQ 100 Covered Call & Growth ETF (NASDAQ: QYLG) has also gained 2.61% in the past 6 months and 6.76% year to date.

Like Altria Group, Inc. (NYSE: MO), Medtronic plc (NYSE: MDT), Abbott Laboratories (NYSE: ABT), and Moody's Corporation (NYSE: MCO), Global X NASDAQ 100 Covered Call & Growth ETF (NASDAQ: QYLG) is a notable investment pick today.

8. Credit Suisse X-Links Silver Shares Covered Call ETN (NASDAQ: SLVO)

Dividend Yield: 6.8%

Credit Suisse X-Links Silver Shares Covered Call ETN (NASDAQ: SLVO) tracks the performance of the Credit Suisse NASDAQ Silver FLOWS 106 Index. The fund ranks 9th on our list of monthly dividend covered call ETFs and ETNs you can count on.

In the past year, the price return for Credit Suisse X-Links Silver Shares Covered Call ETN (NASDAQ: SLVO) was -24.37%, compared to the S&P 500's price return of 33.52%. The ETF's total return was 2.57%, compared to the S&P 500's total return of 10.40%.

Like Altria Group, Inc. (NYSE: MO), Medtronic plc (NYSE: MDT), Abbott Laboratories (NYSE: ABT), and Moody's Corporation (NYSE: MCO), Credit Suisse X-Links Silver Shares Covered Call ETN (NASDAQ: SLVO) is a notable investment pick today.

7. J.P. Morgan Exchange-Traded Fund Trust - JPMorgan Equity Premium Income ETF (NYSE: JEPI)

Dividend Yield: 7.5%

J.P. Morgan Exchange-Traded Fund Trust - JPMorgan Equity Premium Income ETF (NYSE: JEPI) invests in volatile stocks and stocks of companies deemed socially conscious in their business dealing and that directly promote environmental responsibility. The fund ranks 8th on our list of monthly dividend covered call ETFs and ETNs you can count on.

In the past year, the price return for J.P. Morgan Exchange-Traded Fund Trust - JPMorgan Equity Premium Income ETF (NYSE: JEPI) was 16.47%, compared to the 33.52% price return of the S&P 500.

6. Nationwide Risk-Managed Income ETF (NYSE: NUSI)

Dividend Yield: 7.5%

Nationwide Risk-Managed Income ETF (NYSE: NUSI) invests in growth and value stocks of large-cap companies and seeks current income with downside protection. The fund also employs a long/short strategy, using derivatives like options to create its portfolio. It ranks 7th on our list of monthly dividend covered call ETFs and ETNs you can count on.

In the past year, the price return for Nationwide Risk-Managed Income ETF (NYSE: NUSI) was 8.03%, compared to the 33.52% price return of the S&P 500. The total return for the fund was 16.79%, compared to the 10.40% total return of the S&P 500.

Like Altria Group, Inc. (NYSE: MO), Medtronic plc (NYSE: MDT), Abbott Laboratories (NYSE: ABT), and Moody's Corporation (NYSE: MCO), Nationwide Risk-Managed Income ETF (NYSE: NUSI) is a notable investment pick today.

Click to continue reading and see the 5 Monthly Dividend Covered Call ETFs and ETNs You Can Count On.

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Disclosure: None. 10 Monthly Dividend Covered Call ETFs and ETNs You Can Count On is originally published on Insider Monkey.