Derivative Income ETFs and funds generate income by writing options — typically covered calls — on stocks, indexes, or other holdings, distributing the resulting premiums to shareholders. This strategy aims to produce higher current yields than the underlying assets alone, often appealing to income-focused investors, though it can cap upside participation during strong market rallies.

Derivative Income

YieldMax GOOGL Option Income Strategy ETF is an actively managed ETF that seeks current income by selling option spreads tied to Alphabet Inc. Class A shares while maintaining exposure to potential GOOGL price appreciation; the fund does not invest directly in GOOGL.

NYSE Arca

GOOY

YieldMax AMD Option Income Strategy ETF is an actively managed ETF that seeks current income through an options-based strategy tied to Advanced Micro Devices, Inc. shares. The fund uses call option exposure and does not invest directly in AMD stock.

AMDY

CHPY is an actively managed ETF that seeks current income and capital appreciation by investing directly in a select portfolio of 15-30 Semiconductor Companies and generating income primarily through writing options contracts on these companies.

NasdaqGM

CHPY

The SoFi Enhanced Yield ETF is an actively managed fund that uses an options overlay strategy on equity ETFs while holding U.S. Treasury securities as collateral, seeking to generate enhanced yield through options premium income.

NYSEArca

THTA

The fund is actively managed and combines two strategies: investing primarily in U.S. Treasury securities (bills, notes, bonds, and Treasury ETFs) for interest income, and employing an option spread writing strategy on equity and fixed income ETFs to generate additional income. Formerly known as the Simplify Stable Income ETF.

Symbol	Name	Sharpe Ratio (1Y)	Sharpe Ratio (5Y)	Sharpe Ratio (10Y)	Risk / Return Rank
GOOY	YieldMax GOOGL Option Income Strategy ETF	2.91	—	—	92
AMDY	YieldMax AMD Option Income Strategy ETF	2.84	—	—	91
CHPY	YieldMax Semiconductor Portfolio Option Income ETF	2.66	—	—	91
THTA	SoFi Enhanced Yield ETF	2.65	—	—	95
BUCK	Simplify Treasury Option Income ETF	2.60	—	—	96

Top Derivative Income ETFs by Sharpe Ratio

Top Derivative Income ETFs by Sharpe Ratio