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

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

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.

NYSE Arca

AMDY

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.

GOOY

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 Kurv Yield Premium Strategy Google (GOOGL) ETF seeks monthly income while maintaining exposure to Alphabet Inc.'s common stock, utilizing a synthetic covered call strategy to generate income and provide capped gains.

Symbol	Name	Sharpe Ratio (1Y)	Sharpe Ratio (5Y)	Sharpe Ratio (10Y)	Risk / Return Rank
CHPY	YieldMax Semiconductor Portfolio Option Income ETF	3.81	—	—	96
AMDY	YieldMax AMD Option Income Strategy ETF	3.35	—	—	91
GOOY	YieldMax GOOGL Option Income Strategy ETF	3.05	—	—	90
THTA	SoFi Enhanced Yield ETF	2.81	—	—	95
GOOP	Kurv Yield Premium Strategy Google ETF	2.61	—	—	81

Top Derivative Income ETFs by Sharpe Ratio

Top Derivative Income ETFs by Sharpe Ratio