Exploring Three Covered Call ETFs for Monthly Income in 2026

Investors looking for monthly income through covered call ETFs have a few notable options in 2026. The ProShares S&P 500 High Income ETF (ISPY) has delivered a total return of 19% over the past year, significantly outperforming the JPMorgan Equity Premium Income ETF (JEPI), which returned 8%. ISPY's strategy involves a daily option reset, allowing it to reclaim upside potential that traditional monthly covered call funds forfeit for 30 days. This structural design is a key selling point for ISPY, which charges an annual fee of 0.56% for its daily covered call program on the S&P 500. In contrast, JEPI charges a lower fee of 0.35% and offers a more stable income stream, with monthly payouts clustering between $0.34 and $0.45 in 2026.

The Global X S&P 500 Covered Call ETF (XYLD) is another option, priced at 0.60%. XYLD follows a more traditional approach by holding the full S&P 500 and selling one-month at-the-money calls. Its performance has been moderate, returning about 7% year-to-date and 17% over the past year. This makes it a straightforward choice for investors who prefer a simpler covered call strategy without the complexities of leverage or active stock selection.

The choice between these funds ultimately depends on individual investment goals. ISPY's daily reset mechanism allows for greater upside participation in rising markets, while JEPI provides a more predictable income stream, making it suitable for those who prioritize steady cash flow. XYLD serves as a baseline for evaluating the added value of ISPY's more aggressive strategy. Investors must weigh the trade-offs between potential returns and income stability when selecting the right covered call ETF for their portfolios.