Most Income Investors Have Never Heard of These 3 ETFs Paying Up to 14 Percent Every Month

Three monthly-paying ETFs quietly deliver income streams that dwarf what most retirees get from their bond portfolios, and none of them show up on the popular high-yield lists dominated by JEPI, QYLD, and SCHD. The Goldman Sachs Nasdaq-100 Core Premium Income ETF (NASDAQ:GPIQ), the Virtus InfraCap U.S. Preferred Stock ETF (NYSEARCA:PFFA), and the NEOS Russell 2000 High Income ETF (CBOE:IWMI) each pull income from a distinct engine: large-cap tech call premiums, leveraged preferred stock, and small-cap options overlays.

Each one addresses a different structural gap in an income portfolio. With the 10-year Treasury yielding roughly 4.8%, the spread these funds offer over risk-free paper is wide enough to matter, provided investors understand what they are taking in exchange.

IWMI: Small-Cap Premiums With a Tax Wrapper

IWMI is perhaps the least familiar name on this list and the highest payer. The fund runs a data-driven call-writing overlay on Russell 2000 exposure, harvesting the elevated implied volatility that small caps carry relative to the S&P 500. Because it writes index options rather than single-stock options, the premium income is generally taxed under Section 1256, meaning distributions can benefit from a 60/40 long-term/short-term split rather than being fully ordinary income.

The mechanism matters because small-cap volatility is structurally richer than large-cap volatility, which translates into fatter option premiums. IWMI’s most recent monthly distribution was $0.6373 per share, paid August 21, 2026, and the trailing 12-month payout totaled $7.24. Against a share price near $52, that puts the distribution rate in the neighborhood of 14%.

Total return has held up as well, with IWMI up roughly 17% year-to-date and about 25% over the trailing year. The expense ratio is 0.68% net (0.76% gross), which is on the higher side for an equity ETF but reasonable given the active options management.

The tradeoff is capped upside. When small caps rip higher, IWMI’s written calls surrender the tail of the move. In a sideways or grinding market, that trade favors the fund. In a violent rally off a bottom, holders will lag a plain Russell 2000 index fund.

GPIQ: Nasdaq-100 Growth With a Premium Kicker

GPIQ is Goldman Sachs’ answer to JEPQ, and it takes a lighter hand with the options overlay than the older, more aggressive Nasdaq call-writing funds. The portfolio holds the actual Nasdaq-100 constituents and writes calls on a portion of the notional exposure, keeping meaningful equity participation while still generating monthly premium income.

The holdings read like a who’s-who of mega-cap tech. As of the June 30, 2026 filing, top positions were NVIDIA at roughly 7.5% of net assets, Apple near 6.6%, Micron at 5.6%, Amazon at 4.2%, and AMD at 4.1%:

1. NVIDIA — roughly 7.5% of net assets
2. Apple — near 6.6%
3. Micron — 5.6%
4. Amazon — 4.2%
5. AMD — 4.1%

The four written call positions against Morgan Stanley as counterparty appear as negative weights totaling roughly negative 0.85% of net assets, showing how modest the option overlay is relative to the equity book.

That lighter overlay is why GPIQ has kept up with a bull market better than heavier call-writers. Shares are up about 16% year-to-date and 23% over the past year. Distribution details:

• September payout: $0.49683, up from $0.48615 the prior month
• Trailing 12-month distribution and forward annualized figure: trailing 12-month distribution came to $5.71, and the forward annualized figure is $5.96
• Share price as of 9/10/2026: $55.90

Against that share price, the forward figure works out to a distribution rate near 10.5%.

The fund has scaled quickly, with net assets of $5.1 billion as of June 30, 2026. For an investor who wants Nasdaq exposure without giving up all the upside for yield, GPIQ is the most balanced covered-call product in the category.

PFFA: Leveraged Preferreds for a Different Return Stream

PFFA is the contrarian pick, and the one that behaves least like the other two. It is an actively managed portfolio of U.S. preferred securities that uses modest leverage to amplify yield. Preferreds sit between bonds and common stock in the capital structure, paying fixed or floating coupons and typically trading more like credit than equity. Layering leverage on top of that coupon stream is how PFFA reaches its double-digit distribution rate.

The portfolio is diversified across financials, REITs, insurers, utilities, and infrastructure names. As of the April 30, 2026 filing, top weights were Energy Transfer’s preferred series I at roughly 2.4% of net assets, First Citizens Bancshares at 2.4%, Telephone & Data Systems at 2.3%, Banc of California at 2.3%, and KKR at 2.2%:

1. Energy Transfer preferred series I — roughly 2.4% of net assets
2. First Citizens Bancshares — 2.4%
3. Telephone & Data Systems — 2.3%
4. Banc of California — 2.3%
5. KKR — 2.2%

Multiple preferred series from Triton International, Chimera Investment, Two Harbors, and Vornado Realty appear as well, reflecting the fund’s willingness to size up when it likes an issuer’s whole preferred stack.

The distribution has been steady, with PFFA paying $0.1725 per share monthly through all of 2026, up from $0.17 in 2025 and $0.1675 in 2024. Against a $21 share price, the yield lands in the 10% range.

Total return is more muted than the equity funds: up roughly 3% year-to-date and 3% over the past year, which is what you should expect from a fixed-income-flavored product where the total return case is coupon-driven.

The real risk is rate sensitivity. If long rates keep drifting higher, preferred prices decline and PFFA’s leverage magnifies the NAV drawdown.

Choosing Between the Three

These funds are not interchangeable. GPIQ is the right choice for an investor who still wants tech beta and is willing to give up some upside for a monthly check that scales with market volatility. IWMI is the pick for someone who believes small caps will chop rather than rocket, and who values the Section 1256 tax treatment in a taxable account. PFFA belongs in a portfolio that already has equity exposure and needs a genuinely different return stream, one driven by preferred coupons and leverage rather than call premiums.

The common thread is that all three trade some price appreciation for a large, dependable, monthly distribution. For an income-focused portfolio built to spend the yield rather than reinvest it, that trade can be exactly the right one (we rounded up seven more monthly payers, across REITs, BDCs, and funds, in a free report for readers who want to widen the bench).

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