4 Monthly Income ETFs Paying 9.98% to 14.83%

Four option income ETFs that pay every month posted trailing 12-month distribution rates between 10% and 14.8%, measured against their closing prices on October 13, 2026. NEOS Russell 2000 High Income ETF (CBOE:IWMI) leads. Next come NEOS S&P 500 High Income ETF (CBOE:SPYI), JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ:JEPQ) and Goldman Sachs Nasdaq-100 Premium Income ETF (NASDAQ:GPIQ). All four figures look back, and every one of them will change.

Each fund made 12 distributions over the past year. They differ in the index each one sells options against, and that choice drives both the size of the payout and the risk behind it.

How These Funds Turn Market Swings Into Monthly Cash

Start with the covered call. A fund that owns stocks sells someone the right to buy them at a set price, called the strike price, before a set date. That right requires an upfront payment from the buyer. That payment is the option premium, and it funds these distributions.

So the fund gives up gains above the strike in exchange for cash today. If the index rallies well past the strike, the option buyer collects that extra gain.

Premium prices depend on volatility, meaning how sharply an index swings. Choppy markets produce fatter premiums, and calm markets shrink them. That explains why these payouts rise and fall from month to month.

IWMI: Small-Cap Turbulence Funds the Biggest Payout

IWMI’s trailing rate of 14.8% tops the group because the Russell 2000 swings harder than any other index here. Smaller companies move more violently than mega-caps, so options on them command higher premiums. IWMI pairs small-cap exposure with Russell 2000 index options.

That premium is compensation for taking risk. Small caps tend to fall hardest in recessions and credit squeezes, and IWMI carries that full drawdown exposure. It is also the newest fund here, with price history starting in June 2024, and charges a net expense ratio of 0.68%.

IWMI is the overlooked fund on this list. Most option income money sits in large-cap funds, so IWMI ties income to a different slice of the economy. Its monthly payments have ranged from $0.50 to $0.66, a reminder that the payout varies.

SPYI Pairs Broad Market Income With a Tax Edge

SPYI runs the same NEOS strategy on the S&P 500, posting a trailing rate of 11.7%. It holds index stocks and sells SPX index options, often as call spreads, which means buying back higher-strike calls to keep a sliver of upside.

For taxable accounts, that structure matters. Broad index options qualify as Section 1256 contracts, and federal law treats their gains as 60% long-term and 40% short-term capital gains. NEOS also captures losses actively, and IWMI uses the same approach.

The portfolio held about $10.4 billion in net assets at midyear, spread across hundreds of companies with Apple at 7%.

SPYI is the steadiest payer here, with 2026 distributions holding between roughly $0.51 and $0.54. Its price record begins in August 2022.

JEPQ Brings Category Heft and Heavy Nasdaq Exposure

JEPQ is the largest Nasdaq-100 premium income fund, with more than $40 billion in net assets and a trailing rate of 11.3%. J.P. Morgan actively manages a Nasdaq-oriented stock portfolio and generates option income through equity-linked notes, bank-issued securities that package out-of-the-money call exposure.

Semiconductors and megacap platforms dominate. NVIDIA at 7% and Micron at 6% sat near the top, so a chip selloff would hit share price and premium conditions simultaneously.

Payments have swung between $0.47 and $0.70. Prices have been tracked since May 2022.

GPIQ Trades a Smaller Payout for More Upside

GPIQ writes against the same Nasdaq-100, yet its trailing rate of 10% is the lowest here by design. Goldman typically overwrites only part of the portfolio, often in a 25% to 75% range, leaving the rest free to capture rallies.

Holdings mirror JEPQ’s tilt, with NVIDIA at 8% and about $5.1 billion in net assets. Its record begins in October 2023.

Why the Top Payer Also Carries the Most Risk

A higher distribution rate signals a more volatile underlying index, more upside sold away, or both. IWMI’s lead comes from small-cap volatility. GPIQ trails because partial overwriting by design collects less premium.

A distribution rate measures cash paid out, which can differ sharply from what an investor earned. Option income funds often report part of their payout as return of capital, the investor’s own money coming back. Federal law applies that portion against and reduces the adjusted basis of the shares instead of taxing it as income when received. Check each fund’s year-end tax documentation for its actual breakdown.

What You Surrender for Monthly Checks

Capped upside costs the most during strong rallies, when these funds lag their indexes. A slower risk is erosion: if payouts consistently exceed what the portfolio earns, net asset value can shrink.

With distributions reinvested, all four show gains so far:

1. GPIQ: Up 103% since launch and 25% over the past year, the strongest showing, consistent with keeping more upside. Shares trade near $58.
2. JEPQ: Up 96% since its record began and 22% over 12 months, helped by the Nasdaq’s chip-led run. Shares sit near $61.
3. SPYI: Up 80% since its record began and 19% over the past year, tracking a broader, less tech-heavy index. Shares are near $54.
4. IWMI: Up 37% since mid-2024 and 18% over 12 months, yet down 3% in the past month, showing small-cap turbulence. Shares trade near $49.

Those results came during a mostly rising market. None of these funds has lived through a full market cycle or a sustained bear market, and that untested record matters for anyone relying on them for income.

Matching the Fund to the Investor

This structure suits those seeking monthly cash from stocks who accept full equity drawdown risk, with SPYI’s tax structure suited to taxable accounts and GPIQ’s partial overwriting suited to those prioritizing Nasdaq growth. JEPQ brings the most scale and longest Nasdaq track record of the group. IWMI fits investors who specifically want small-cap income and can handle bigger swings. Investors seeking stable income or a bond replacement face a mismatch here, because all four carry stock-market risk and payouts that vary.

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