Comparing the Best Covered Call ETFs: JEPI vs QYLD vs XYLD vs RYLD

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If you’ve been looking at ways to add income to your portfolio, you’ve probably come across covered call ETFs. They’re a popular choice for investors who want steady income, even if the share prices don’t move much. Some of the most talked about ones are JEPI, QYLD, XYLD, and RYLD. Each of these ETFs takes a slightly different approach, but the goal is to give you regular income through options. If you’re curious to learn more about how they work, check this backtested comparison: https://dividendstacker.com/high-yield-covered-call-etfs.

Let’s start with JEPI (JPMorgan Equity Premium Income ETF). JEPI is a little different from the others because it doesn’t just use a plain covered call strategy. It mixes in low-volatility stocks and also uses equity-linked notes for its options income. It’s known for having lower risk and often performs better in down or sideways markets. It also pays monthly income, which is a big plus for many investors.

Then we have QYLD (Global X Nasdaq 100 Covered Call ETF). QYLD is super popular because it writes calls on the Nasdaq 100, a tech-heavy index. That usually means good income from the option premiums, but the downside is that it gives up some growth. Tech stocks tend to bounce a lot, so QYLD often sells its upside early by writing calls every month. It also pays monthly, which many income-focused investors love.

XYLD is similar to QYLD but based on the S&P 500 instead. That means it’s a bit more stable and diversified. It still uses the buy-write strategy (holding the index stocks and selling calls), but it’s tied to a broader group of companies rather than just tech. If you like the idea of income from a more classic portfolio, XYLD could be a good fit.

Finally, there’s RYLD, which tracks the Russell 2000. This index is made up of small-cap stocks, which can be more volatile. That can mean higher returns from sold options, but also more risk in the actual stock holdings. RYLD might suit someone okay with bumpier rides for a shot at higher payouts.

Each ETF brings something different to the table. JEPI tends to be the smoothest, QYLD offers big current income, XYLD is more balanced, and RYLD has more risk and reward. Which one works for you depends on your goals and how much price movement you’re willing to handle for steady income.