The fund seeks to outperform U.S. equity markets in modestly rising market environments, to capture most of the equity returns in strong bull markets, and to generate returns that approximate the U.S. equity markets in falling markets, gross of fees. It seeks to capture returns through a systematic investment process of obtaining exposure to the U.S. equity markets primarily through the options markets. It is non-diversified.

Nasdaq

BARLX

The fund will invest at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in equity securities and equity-related instruments, including equity-linked notes. It may invest in securities of companies with any market capitalization, but will generally focus on large cap securities. The fund may invest up to 50% of its assets in equity-linked notes that provide exposure to equity securities and covered call options or other types of financial instruments.

BMCIX

Under normal circumstances, the fund invests at least 80% of its net assets, plus the amount of borrowings for investment purposes, in equity securities that constitute the NASDAQ-100 Index ® (“NDX”). The NDX is a large-capitalization growth index comprised of the 100 largest domestic and international (including emerging markets) non-financial companies listed on the Nasdaq Stock Market based on market capitalization.

CLPAX

Under normal market conditions, the fund will invest at least 80% of the value of its net assets (the “80% Test”) in a portfolio, or other investment companies that hold a portfolio, of FLEX Options linked to the index and that are designed to replicate the returns of the twelve 20% Buffer Strategies. The fund is non-diversified.

ENGIX

The fund invests at least 80% of its net assets, plus borrowings for investment purposes, in dividend paying common stocks of medium-capitalization companies (which are companies with a typical capitalization range of between $5 billion and $12 billion at the time of investment) and large-capitalization companies (which are companies with a typical capitalization range greater than $12 billion at the time of investment). It may invest up to 30% of its assets in foreign securities.

ENHNX

The fund invests primarily in U.S. equity securities that generate a relatively high level of dividend income (relative to other equities in the same industry) and have the potential for capital appreciation. These securities will generally be stocks of medium and large U.S. corporations. It will invest at least 80% of its total assets (which includes the amount of any borrowings for investment purposes) in common stocks.

EQTIX

The investment seeks to generate income. The fund invests in a portfolio of equity securities and writes (sells) call options on those securities. Under normal circumstances, it will write (sell) call options on a majority of its total assets. Typically, all of the call options written (sold) by the fund are expected to be "in-the-money" at the time they are written (sold). Its call option writing strategy is designed to generate income and lower the overall risk profile of the fund's portfolio.

FPILX

The investment seeks long-term capital appreciation. The fund invests in a portfolio of equity securities and writes (sells) call options on those securities. Under normal circumstances, the fund writes (sells) call options on at least 80% of the fund's total assets. The fund normally writes (sells) covered call options listed on U.S. exchanges on the equity securities held by the fund to seek to lower the overall volatility of the fund's portfolio, protect the fund from market declines, and generate income.

FRCDX

The investment seeks to maximize total return with an emphasis on income. The fund invests at least 80% of its net assets plus any borrowings for investment purposes (measured at the time of purchase) ("Net Assets") in dividend-paying equity investments in non-U.S. issuers with public stock market capitalizations within the range of the market capitalization of the Morgan Stanley Capital International (MSCI) Europe, Australasia, Far East (EAFE) Index (Net, USD, Unhedged) ("MSCI EAFE Index") at the time of investment.

GIDHX

The fund invests primarily in equity securities, including common and preferred stock and equity-linked notes (ELNs) and depositary receipts of U.S. and foreign issuers. Under normal circumstances, it will provide exposure to investments that are economically tied to at least three different countries outside of the U.S. The fund may also invest up to 50% of its net assets in securities of issuers located in emerging markets countries, i.e., those that are generally in the early stages of their industrial cycles.

GTNDX

The fund seeks to deliver monthly distributable income and equity market exposure with less volatility.

JEPAX

The JPMorgan Equity Premium Income Fund (JEPIX) aims to provide returns similar to its primary benchmark, the Standard & Poor's 500 Total Return Index (S&P 500 Index), while minimizing risk through lower volatility and providing additional income. Typically, it invests at least 80% of assets in equity securities, including common stocks, ELNs, and other equity securities. 

JEPIX

The investment seeks to track the price and yield performance, before fees and expenses, of the Cboe S&P 500® Dividend Aristocrats Target Income Index (the "index"). The fund employs an investment approach designed to track the performance of the index before fees and expenses. The index is designed with the primary goal of generating an annualized level of income that is approximately 3.5% over the annual dividend yield of the S&P 500® Index and a secondary goal of generating price returns that are proportional to the price returns of the S&P 500® Index.

KNGLX

The fund invests, under normal conditions, primarily in common stocks of large- and mid-capitalization issuers that are, in the view of the fund's investment adviser, selling at a reasonable price in relation to their long-term earnings growth rates. It will invest at least 80% of its net assets in common stocks, with at least 65% of this amount invested in common stocks of large capitalization issuers that meet the fund's selection criteria.

MENYX

The investment seeks income and long-term growth of capital. The fund invests, under normal circumstances, at least 80% of its net assets (plus any borrowings for investment purposes) in securities of U.S. issuers, and in derivatives and other instruments that have economic characteristics similar to such securities. It invests primarily in U.S. equity securities, including common and preferred stock, and ELNs. It may also invest in real estate investment trusts (REITs), which are trusts that sell equity and/or debt securities to investors and use the proceeds to invest in real estate or interests therein.

SCAUX

The investment seeks dividend income and options premium income, with the potential for capital appreciation and less volatility than the broad equity market. The fund invests in a portfolio of large cap, dividend paying, equity securities that are listed on U.S. exchanges and to write (sell) covered call options on those securities with the overall goal of providing options premium income and lowering volatility of the fund's portfolio when compared to the broader uncovered large cap securities market.

SCJIX

The investment seeks current income and realized gains from writing options with capital appreciation as a secondary objective. The fund seeks to meet its investment objective by investing, under normal market conditions, in dividend paying equity securities of domestic and foreign large capitalization companies. The advisor expects to invest up to 20% of the fund's assets in foreign securities and the remainder in domestic securities. It is expected that the fund's strategy will result in high portfolio turnover.

Symbol	Full Name	Category	Inception	Expense Ratio	YTD Return	10Y Return (Annualized)	Dividend Yield
BARLX	Beacon Accelerated Return Strategy Fund	Derivative Income	Oct 1, 2017	1.23%	4.05%	—	0.00%
BMCIX	BlackRock High Equity Income Fund	Derivative Income	Apr 30, 1998	0.85%	3.61%	7.39%	6.66%
CLPAX	Catalyst Nasdaq-100 Hedged Equity Fund	Derivative Income	Dec 30, 2013	1.74%	-0.26%	4.15%	0.00%
ENGIX	Cboe Vest US Large Cap 20% Buffer Fund	Derivative Income	Dec 20, 2016	0.95%	3.40%	—	0.00%
ENHNX	Cullen Enhanced Equity Income Fund	Derivative Income	Dec 14, 2015	0.75%	3.28%	—	6.23%
EQTIX	Shelton Equity Income Fund	Derivative Income	Sep 3, 1996	0.72%	5.04%	8.66%	10.31%
FPILX	Delaware Premium Income Fund	Derivative Income	Apr 1, 2018	1.05%	1.89%	—	2.70%
FRCDX	Delaware Covered Call Strategy Fund	Derivative Income	Mar 31, 2016	1.06%	-74.95%	—	333.14%
GIDHX	Goldman Sachs International Equity Dividend and Pr...	Derivative Income	Jan 30, 2008	0.89%	-1.33%	2.29%	3.56%
GTNDX	Invesco Income Advantage International Fund	Derivative Income	Sep 14, 1997	1.21%	3.82%	2.03%	7.99%
JEPAX	JPMorgan Equity Premium Income Fund Class A	Derivative Income, Dividend	Aug 31, 2018	0.85%	4.23%	0.60%	7.24%
JEPIX	JPMorgan Equity Premium Income Fund Class I	Derivative Income	Aug 31, 2018	0.63%	4.24%	—	7.48%
KNGLX	CBOE Vest S&P 500 Dividend Aristocrats Target Inco...	Derivative Income	Sep 10, 2017	1.20%	1.71%	—	9.63%
MENYX	Madison Covered Call & Equity Income Fund	Derivative Income	Oct 29, 2009	1.01%	0.70%	7.41%	7.77%
SCAUX	Invesco Income Advantage U.S. Fund	Derivative Income	Mar 30, 2006	1.05%	5.99%	4.56%	6.46%
SCJIX	Crossmark Steward Covered Call Income Fund	Derivative Income	Dec 13, 2017	1.00%	5.44%	—	10.25%
TCBIX	The Covered Bridge Fund	Derivative Income	Sep 30, 2013	1.40%	1.64%	5.38%	5.94%

The Best Derivative Income Mutual Funds

Risk vs. Return Scatterplot