Nasdaq-100 Covered Call ETFs

Q: What is the best Nasdaq-100 covered call ETF?

By composite score, QQA ranks first among Nasdaq-100 covered call ETFs at 8.04 out of 10, followed by QDVO (7.68), GPIQ (7.57), QQQI (7.43) and JEPQ (7.24).

Q: How does QYLD differ from QQQI?

QYLD sells at-the-money calls on its entire Nasdaq-100 portfolio, giving up most upside in exchange for higher premium. QQQI sells calls at strikes above the current price, leaving room for capital appreciation. QQQI has delivered materially higher total return since inception as a result, and its NAV has grown where QYLD has eroded.

Ten of the 28 covered call ETFs tracked by CoveredRank write options on the Nasdaq-100. This group has the widest range of option strategies and, as a result, the widest spread in outcomes. This page ranks all ten by composite score and explains what separates them.

The 10 Nasdaq-100 covered call ETFs ranked

Rank	Ticker	Fund	Score
1	QQA	Invesco Nasdaq-100 Income Advantage ETF	8.04
2	QDVO	Amplify CWP Growth & Income ETF	7.68
3	GPIQ	Goldman Sachs Nasdaq-100 Premium Income ETF	7.57
4	QQQI	NEOS Nasdaq 100 High Income ETF	7.43
5	JEPQ	JPMorgan Nasdaq Equity Premium Income ETF	7.24
6	QYLG	Global X Nasdaq 100 Covered Call ETF	6.89
7	QYLD	Global X Nasdaq 100 Covered Call ETF	6.00
8	FEPI	REX FANG & Innovation Equity Premium Income ETF	5.80
9	IQQQ	ProShares Nasdaq-100 High Income ETF	5.70
10	QQQX	Nuveen Nasdaq 100 Dynamic Overwrite Fund	5.21

Three option strategies, three outcomes

The Nasdaq-100 covered call universe splits into three structural approaches. The first sells at-the-money calls on the full portfolio, maximizing premium but capping upside at the current price. QYLD is the archetype. The second sells calls above the current price, accepting lower premium to preserve capital appreciation. QQQI and GPIQ use this approach. The third covers only part of the portfolio, leaving the rest to run with the index. QYLG and QQA take this route.

Strategy choice explains most of the score dispersion. QYLD, despite being the oldest and best-known fund in the group, sits 7th on composite score. Its at-the-money approach has eroded NAV by more than 25% since 2013, and its total return has lagged every other fund in the group. QQQI, launched in 2024, already ranks 4th, because its out-of-the-money approach has preserved capital while still distributing over 13%.

Why Nasdaq-100 premiums are higher

The Nasdaq-100 has higher implied volatility than the S&P 500, which means option premiums are larger. A fund can therefore distribute more income per dollar invested. The trade-off is that the fund also gives up more upside when the index rallies, and suffers more when the index falls. Nasdaq-100 covered call ETFs are not inherently better than S&P 500 funds. They are structurally different.

Frequently asked questions

What is the best Nasdaq-100 covered call ETF?

By composite score, QQA ranks first at 8.04, followed by QDVO (7.68), GPIQ (7.57), QQQI (7.43) and JEPQ (7.24).

How does QYLD differ from QQQI?

QYLD sells at-the-money calls on its entire portfolio. QQQI sells calls above the current price. QQQI has delivered materially higher total return since inception as a result.

Why do Nasdaq-100 covered call ETFs pay more than S&P 500 funds?

Higher implied volatility means larger option premiums. Higher premium allows higher distributions, but also means giving up more upside when the index rallies.