3 ETFs Yield Over 10% Without Relying on Covered Calls

Tony Dong Wed, September 9, 2026 at 6:31 PM PDT · 7 min read

Quick Read

• WTPI currently offers a 12.09% distribution yield by systematically selling slightly out-of-the-money S&P 500 puts. Instead of sacrificing upside through covered calls, investors accept downside risk in exchange for option premiums.
• XCCC's 11.94% 30-day SEC yield comes from owning some of the riskiest corporate bonds available. Its 2% issuer cap provides diversification, but a broad deterioration in credit conditions could still produce significant losses.
• BIZD provides diversified exposure to publicly traded BDCs and an 11.42% trailing distribution yield. Its headline 9.69% expense ratio primarily reflects acquired fund fees and expenses from the underlying BDCs.

The conventional wisdom around covered call ETFs is fairly straightforward. They tend to underperform during strong bull markets because some of their upside has been sold away, potentially outperform during sideways markets, and provide a modest cushion during bear markets because those premiums offset some losses.

Now consider which of those environments has historically dominated most investors' experience: bull markets. That's the main problem I have with building an income portfolio entirely around covered calls. Your biggest long-term risk may be earning a total return that isn't competitive enough to keep pace with your future spending needs, particularly after inflation. Giving up equity upside year after year can become expensive when stocks continue compounding higher.

That said, I know plenty of investors are enamored with income. My preference is to approach income the same way I approach the rest of portfolio construction: diversify. That means diversifying across asset classes, sectors, company sizes, and countries, but also across the risk premiums you're accepting to generate that income.

With covered calls, you're effectively being paid to sell some future upside. There are other ways to generate double-digit yields. You can sell downside protection to other investors, accept substantial credit risk, or lend money to private companies. Each carries a very different set of risks, which is exactly why combining different sources of income can make more sense than relying entirely on one options strategy. Here are three ETFs currently yielding more than 10% that take those alternative approaches.

WisdomTree Equity Premium Income Fund (WTPI)

Think of selling a cash-secured put as the other side of the options-income equation. Suppose a stock trades at $100 and you'd be willing to buy 100 shares at $95. You could sell a $95 put and keep enough cash available to purchase those shares if assigned. In return, you collect a premium upfront. WTPI applies this strategy systematically across the S&P 500, selling slightly out-of-the-money puts to generate its 12.09% distribution yield. The trade-off: investors accept downside risk rather than capping upside potential.

XCCC

XCCC's 11.94% 30-day SEC yield is derived from holding some of the riskiest corporate bonds available. The fund's 2% issuer cap helps provide diversification, but a broad deterioration in credit conditions could still produce significant losses. This ETF offers a different risk profile compared to options-based strategies, relying on credit risk rather than equity market exposure.

BIZD

BIZD provides diversified exposure to publicly traded Business Development Companies (BDCs) and offers an 11.42% trailing distribution yield. Its headline 9.69% expense ratio primarily reflects acquired fund fees and expenses from the underlying BDCs, rather than direct management costs. BDCs lend to private companies, offering another distinct source of high income.

This article originally appeared on 24/7 Wall St.