Five Monthly-Paying ETFs Offer Yields from 7% to 14% for 2027

Covered-Call ETFs: QQQI, JEPQ, and GPIQ

Three of the five ETFs generate income by writing covered calls on the Nasdaq-100, but with different intensities. The NEOS Nasdaq-100 High Income ETF (QQQI) uses a data-driven approach and benefits from Section 1256 tax treatment, which can classify more of its distributions as return of capital or long-term gains. Its trailing 12-month payouts total $7.62 per share against a price of $55.14, implying a distribution rate of about 15.8%. Monthly checks in 2026 have ranged from $0.6089 to $0.6589. The fund delivered a 19% total return over the past year, showing that the call overlay has not fully capped participation in the Nasdaq's rise. Its expense ratio is 0.68%.

The JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) is the category's mainstream option. It uses equity-linked notes to synthesize covered calls, allowing for precise strike selection. Its top holdings include NVIDIA at 6.91%, Apple at 6.61%, Alphabet at 5.28%, Microsoft at 5.03%, and Amazon at 4.34%. The August 2026 payout of $0.70497 was the largest monthly check in the fund's history, and the current implied yield is near 10.9%. Total return over the past year came in at 21%, ahead of QQQI on a price-plus-distribution basis. The expense ratio is 0.35%, the cheapest of the three, but distributions are generally taxed as ordinary income.

The Goldman Sachs Nasdaq-100 Premium Income ETF (GPIQ) takes a lighter approach to call writing, allowing more upside during rallies but accepting a lower distribution rate. Its one-year return was 25%, and year-to-date return was 16%, both ahead of QQQI and JEPQ. The distribution yield is near 9.9%, with monthly payouts ranging from $0.4319 to $0.51923 in 2026. Top holdings mirror the others, led by NVIDIA at 8.51%, Apple at 7.31%, and Microsoft at 5.60%.

Preferred Stocks and High-Yield Bonds: PFFA and SPHY

The Virtus InfraCap U.S. Preferred Stock ETF (PFFA) actively manages a portfolio of 188 preferred issues, with leverage amplifying income and interest-rate sensitivity. It holds positions in financials, energy infrastructure, and REIT preferreds, including Energy Transfer, Apollo Global Management, KKR, and Flagstar Bank. Monthly distributions have been fixed at $0.1725 for 2026, translating to an annualized rate of roughly 9.9% at the current price of $20.88. Net assets stand at $2.35 billion. The one-year total return of 7% lags the covered-call group, reflecting its rate-sensitive nature. The expense ratio is 2.11%, which includes leverage costs.

The SPDR Portfolio High Yield Bond ETF (SPHY) is the only fund here whose income comes from bond coupons. It tracks the ICE BofA US High Yield Index and holds 1,923 securities, providing broad exposure to the U.S. junk bond market. Its distribution rate is around 7%.

What it means for income investors

These five ETFs offer a range of monthly income options, from aggressive covered-call strategies to more conservative bond and preferred stock funds. The choice depends on one's tolerance for equity risk and interest-rate sensitivity, with yields varying from roughly 7% to 14%.

Reporting based on: Yahoo Finance. Figures verified against market data where available.