With inflation still running hot, investors are searching for new ways to generate meaningful income.
This search has sparked a surge of interest in high-yield ETFs, funds designed to offer juicy yields using innovative strategies. Three in particular currently offer up yields of more than 15%, earning them a second look. Let’s dive into these three right now.
NEOS Nasdaq-100 High Income ETF
NEOS Funds introduced the Nasdaq-100 High Income ETF (QQQI) with a clear focus on delivering monthly income. QQQI has a forward annual payout of $7.65 and a yield of 15%, earning it a spot on this generous list.
Since its inception in January 2024, QQQI has tracked the Nasdaq-100 Index ($IUXX) with a data-driven call option overlay. The fund doesn’t use leverage. Instead, it sells covered calls on Nasdaq-100 constituents to collect premiums, which helps fund those monthly payouts.
With managed assets of $1.44 billion and a monthly trading volume of over 2 million shares, QQQI is both sizable and liquid. The expense ratio is set at 0.68%, a reasonable cost for an actively managed, options-based strategy. QQQI is down roughly 1.2% for the year to date.
Roundhill S&P 500 0DTE Covered Call Strategy ETF
The Roundhill S&P 500 0DTE Covered Call Strategy ETF (XDTE), managed by Roundhill Investments, began trading in March 2024 with a clear mandate to generate weekly income. The annualized forward payout stands at $11.57 and XDTE currently has a forward yield of 27%. XDTE is down just over 12% in the year to date.
XDTE tracks the S&P 500 Index ($SPX) by establishing a synthetic long position through deep-in-the-money FLEX options, then sells out-of-the-money zero-days-to-expiry (0DTE) call options each morning to generate premium income. This disciplined, active strategy aims to deliver a steady stream of weekly payouts while capturing most of the S&P 500’s overnight gains, though it caps upside potential during sharp rallies. Distributions in excess of earnings are treated as return of capital, which is an important consideration for those focused on long-term capital preservation.
XDTE manages $378 million in assets and carries an expense ratio of 0.97%.
YieldMax S&P 500 0DTE Covered Call Strategy ETF
The YieldMax S&P 500 0DTE Covered Call Strategy ETF (SDTY) is part of the YieldMax ETFs family, managed by Elevate Shares, and tracks the S&P 500 Index. SDTY currently has a forward annualized payout of $11.74 and a yield of 26.9%, providing weekly income, albeit with a unique approach and its own set of risks.
Launched in February 2025, SDTY employs a synthetic covered call strategy, combining deep-in-the-money call options for S&P 500 exposure with the sale of out-of-the-money, zero-days-to-expiry (0DTE) call options to generate premium income. This method means SDTY does not own physical stocks, but rather uses derivatives to mirror the index’s price return while selling 0DTE calls each day to capture income from market volatility. The result is a fund that provides exposure to S&P 500 gains, though with upside capped by the strike price of the options sold.
With managed assets around $12.4 million and a daily trading volume just over 10,900 shares, SDTY is still relatively small and less liquid than some of its peers, but its structure is transparent and its strategy is well-defined. SDTY is down just under 5% over the past three months, and its 1.01% expense ratio is reasonable for an actively managed, options-based approach.
Conclusion
High-yield ETFs like QQQI, XDTE, and SDTY provide juicy income at a time when such payouts are hard to come by. With the Federal Reserve keeping interest rates at still-high levels, these funds are likely to remain popular among those looking for regular cash flow. The Fed’s hesitation to lower rates, even as the economy faces challenges, means traditional fixed-income options still lag behind. That’s why these high-yield ETFs stand out for anyone wanting strong monthly or weekly payouts.
