Best Broad Equity Covered Call ETFs of 2026
Broad equity covered call ETFs spread your money across a whole market rather than one industry. Some follow the TSX, others the S&P 500, the Nasdaq-100 or a global index, and the call writing on top turns part of each market's growth into regular cash.
This is the widest group on the site, so the funds here can behave very differently from each other. A Canadian dividend fund and a U.S. technology-heavy fund will rarely move together, which is why the returns table is a good place to start.
Keep an eye on currency hedging when you compare them, since an unhedged U.S. fund's return also carries the move in the Canadian dollar.
So far in 2026, the best of the 35 funds is NPS at +35.61%, with BIGY last at −12.16%. The median fund is up 11.5%, and 32 of the 35 are in the black.
Key Takeaways
- NPS is out in front with +35.61%.
- Choosing the right fund has counted: the leader is 47.8 percentage points ahead of the laggard.
- The line between the better and weaker halves of the table sits at up 11.5%.
The Top 5 in 2026
1. NPS: Ninepoint Canadian Large Cap Leaders Split Corp.
Heading the table, NPS has turned in +35.61% so far in 2026. Price gains of 18.4% sit alongside 17.2 percentage points of distributions in roughly equal measure. Its method is worth noting: it has the ability to write calls on part of the portfolio and it uses leverage through its split share structure. Its leverage has added to a good year, and it would add to a bad one in the same way. The fund is yielding 16.97% on an annualized basis right now, with an MER of 7.8%. Alimentation Couche-Tard Inc, Brookfield Infrastructure Partners Lp and Canadian Pacific Kansas City are among its biggest positions.
2. SDAY: Hamilton Enhanced U.S. Equity DayMAX ETF
Second best is SDAY, at +26.99%. The payouts, at 17.9 percentage points, outweigh the 9.1% gain in price. The fund's rules are simple: it writes calls on about 25% of the portfolio, it uses about 25% leverage and exchange-rate moves flow into its return, as it doesn't hedge. Some of the strength here is leverage, which adds to gains and losses alike. It carries an MER of 1.05% and a current yield of 17.63%. 0DTE call writing is the defining feature of its line-up: short-lived options sold against part of the portfolio, combined with modest leverage to keep more of the market's climb. Its largest holdings include Hamilton Champions U.S. Dividend Index ETF and Vanguard S&P 500 ETF.
3. CDAY: Hamilton Enhanced Canadian Equity DayMAX ETF
In third place, CDAY has returned +23.67%. A 6.7% price gain is topped up by 17.0 percentage points of distributions, which did most of the work. Here, it writes calls on about 25% of the portfolio, it uses about 25% leverage and it doesn't hedge, so the Canadian dollar's moves show up in the return. Some of this result is leverage at work in a rising market. The current annualized yield is 18.84%, and its MER comes to 1.04%. Because its 0DTE calls expire every afternoon, any move that happens after the market closes, overnight or over a weekend, flows through to the fund in full. The heaviest positions belong to Hamilton Champions Canadian Dividend Index ETF and Vanguard S&P 500 ETF.
4. HLIF: Harvest Canadian Dividend Leaders Income ETF
Next up is HLIF, up 20.94% this year. This one has been driven by price: 14.3% from the units against 6.7 percentage points from payouts. A quick look at its setup shows that it writes calls on about 33% of the portfolio. The yield today is 6.62% a year; the MER is 0.79%. This line-up aims to pair steady monthly income with room for growth by keeping calls on only part of the holdings. Its portfolio is led by Thomson Reuters Corporation, Suncor Energy Inc. and Canadian Natural Resources Limited.
5. HDIV: Hamilton Enhanced Canadian Covered Call ETF
The top five ends with HDIV, at +18.29% all in. It earned its return in two similar pieces, 8.8% on the units and 9.5 percentage points in payouts. Beneath the headline number, it writes calls on about 25% of the portfolio, it uses about 25% leverage and its foreign currency exposure stays unhedged. Borrowing to own more has helped here; the same borrowing would make a falling market hurt more. It currently pays an annualized yield of 10.35% and charges an MER of 0.97%. Most of its weight sits in names like Hamilton Enhanced Canadian Financials ETF, Hamilton Energy Yield Maximizer ETF and Hamilton Canadian Financials Yield Maximizer ETF.
What Sets the Leaders Apart
On average the leaders returned +11.46% on price and the laggards −11.89%, while their distributions sat closer together at 13.6 percentage points and 10.1 percentage points. The order of the table in 2026 has been set by price, which is shaped by holdings, call coverage and leverage together.
There's a strategy difference as well: calls on about 25% of the portfolio for the typical leader, against 40% for the typical laggard. Less coverage means less upside sold away.
Leverage separates the groups too: 4 of the leaders use it and 1 of the laggards do. That edge depends on the market's direction, so it isn't a permanent one.
The fund with the richest yield, BIGY at 32.59%, ranks only 35th of 35. That gap is the clearest sign in the table that a big payout and a strong return can part ways.
The typical MER is 1.00% for the leaders and 0.86% for the laggards, close enough that fees can't account for the spread.
The Bottom 5 in 2026
31. BDIV: Brompton Global Dividend Growth ETF
BDIV's total return of +2.49% leaves it 31st. Payouts are doing all the work here, adding 5.3 percentage points against a 2.8% slide in the units. As built, it adjusts how much of the portfolio it writes calls on as markets change and it keeps a hedge on its foreign currency. On today's numbers, the yield is 7.26% and the MER 0.96%.
32. CUDC: CIBC US High Dividend Covered Call ETF (Unhedged)
Holding 32nd place, CUDC has returned +2.00% so far in 2026. A 4.3% fall in the units was more than offset by 6.3 percentage points in distributions. It is more of a U.S. fund, so it hasn't tracked the Canadian names that led the way. Its currency exposure isn't hedged, which adds the loonie's ups and downs to its return. In terms of how it earns its income, it writes calls on roughly 30 to 50% of the portfolio. Its MER is 0.55%, against a current annualized yield of 7.65%. Separate units trade as CUDC.F.
33. LEAD: Evolve Future Leadership Fund (Hedged)
LEAD rounds into 33rd place with −0.20%. A 9.7% fall in its unit price is the main story; distributions clawed back 9.5 percentage points. It helps to know that it writes calls on about 33% of the portfolio and it hedges its U.S. dollar exposure, with a 12.13% yield and a 0.92% MER. It comes in other forms too, including LEAD.B (unhedged) and LEAD.U in U.S. dollars.
34. EDGF: Brompton European Dividend Growth ETF
EDGF turns up 34th of 35, down 1.22% all in. The 5.6 percentage points from payouts helped, but not enough against a 6.8% decline in price. Its European holdings have moved differently from the Canadian names at the top of the table. Inside the fund, it adjusts how much of the portfolio it writes calls on as markets change and it carries a currency hedge, and it currently yields 7.76% for an MER of 0.86%.
35. BIGY: Evolve US Equity UltraYield ETF
BIGY comes in last on a total return of −12.16%. With the units down 35.8%, the 23.7 percentage points it paid out has only softened the blow. A U.S. focus has set it apart from the Canadian funds near the top. Digging into the fund itself, it writes calls on about 50% of the portfolio, it uses up to 33% leverage and it hedges currency, so the loonie's moves barely register. With leverage in the mix, a soft patch in its holdings has hit the return even harder. Looking at income and cost, it yields 32.59% and charges an MER of 0.61%. Strikes in this line-up are set to pay for the target distribution: on jumpy stocks that can mean selling calls well above the current price, on quieter ones closer to it, giving up more upside for a bigger premium.
What to Watch in Broad Equity Funds
Because this group covers so much ground, the first question is what market each fund actually follows. A Canadian dividend fund, a U.S. large-cap fund and a European fund can all sit here, and in any given year they can land far apart for reasons that have nothing to do with their option strategy.
Currency and leverage come next. An unhedged U.S. fund carries the Canadian dollar's moves along with its stocks, and the enhanced versions that borrow to own more will tend to sit at the extremes of the table, near the top in strong markets and near the bottom in weak ones.
How to Compare Them Yourself
Look at total return before anything else. These ETFs trade some of their upside for income, and most of their result reaches you as distributions, which a price chart leaves out.
Next, split the return into its two parts. Some funds lean on distributions while their price stalls, others grow their price and pay a little less. If you draw on the income, a steady or rising price is what keeps the payouts going.
Round it out with the MER, any leverage, and the holdings. Small differences in cost add up over the years, and our Compare tool lets you put any five funds next to each other.
All 35 Funds Ranked
| # | Fund | 2026 Total Return | Price Return | Annualized Yield | MER | Leverage |
|---|---|---|---|---|---|---|
| 1 | NPSNinepoint Canadian Large Cap Leaders Split Corp. | +35.61% | +18.42% | 16.97% | 7.80% | Yes |
| 2 | SDAYHamilton Enhanced U.S. Equity DayMAX ETF | +26.99% | +9.10% | 17.63% | 1.05% | Yes |
| 3 | CDAYHamilton Enhanced Canadian Equity DayMAX ETF | +23.67% | +6.69% | 18.84% | 1.04% | Yes |
| 4 | HLIFHarvest Canadian Dividend Leaders Income ETF | +20.94% | +14.27% | 6.62% | 0.79% | No |
| 5 | HDIVHamilton Enhanced Canadian Covered Call ETF | +18.29% | +8.81% | 10.35% | 0.97% | Yes |
| 6 | RCDCRBC Canadian Dividend Covered Call ETF | +18.20% | +11.48% | 6.79% | 0.73% | No |
| 7 | ECHINinepoint Enhanced Canadian HighShares ETF | +16.47% | +2.55% | 16.45% | 1.88% | Yes |
| 8 | ZWCBMO Canadian High Dividend Covered Call ETF | +16.09% | +10.28% | 6.36% | 0.72% | No |
| 9 | CANYEvolve Canadian Equity UltraYield ETF | +16.04% | −1.82% | 20.50% | 0.61% | Yes |
| 10 | RUDCRBC U.S. Dividend Covered Call ETF | +15.55% | +9.07% | 6.79% | 0.73% | No |
| 11 | CCDCCIBC Canadian High Dividend Covered Call ETF | +14.93% | +8.35% | 7.92% | 0.55% | No |
| 12 | BLOVBrompton North American Low Volatility Dividend ETF | +14.17% | +10.44% | 4.18% | 0.76% | No |
| 13 | ZWQTBMO Global Enhanced Income Fund (ETF Series) | +12.93% | +8.20% | 5.12% | 0.72% | No |
| 14 | HHICHarvest Canadian High Income Shares ETF | +12.73% | −1.64% | 18.17% | 1.45% | Yes |
| 15 | SMAXHamilton U.S. Equity Yield Maximizer ETF | +12.72% | +3.08% | 11.48% | 0.78% | No |
| 16 | ZPAYBMO Premium Yield ETF (Unhedged) | +12.50% | +5.88% | 7.02% | 0.71% | No |
| 17 | HVOIHarvest Low Volatility Canadian Equity Income ETF | +12.45% | +6.17% | 6.72% | 0.89% | No |
| 18 | ZWGBMO Global High Dividend Covered Call ETF | +11.45% | +5.88% | 6.42% | 0.72% | No |
| 19 | ZWHBMO US High Dividend Covered Call ETF | +11.13% | +5.53% | 6.47% | 0.71% | No |
| 20 | PHWPurpose International Enhanced Equity Income Fund | +8.69% | +1.71% | 8.04% | 0.97% | No |
| 21 | HRIFHarvest Diversified Equity Income ETF | +8.52% | +0.81% | 9.01% | 0.99% | No |
| 22 | HYLDHamilton Enhanced U.S. Covered Call ETF | +8.33% | −2.44% | 13.75% | 1.87% | Yes |
| 23 | ZWSBMO US High Dividend Covered Call Hedged to CAD ETF | +6.54% | +1.11% | 6.85% | 0.71% | No |
| 24 | ZWEBMO Europe High Dividend Covered Call Hedged to CAD ETF | +6.39% | +0.61% | 6.77% | 0.72% | No |
| 25 | HHIHHarvest High Income Equity Shares ETF | +6.02% | −10.42% | 21.35% | 0.99% | No |
| 26 | ZWPBMO Europe High Dividend Covered Call ETF | +5.64% | +0.25% | 6.50% | 0.72% | No |
| 27 | HBIEHarvest Balanced Income & Growth Enhanced ETF | +4.90% | −3.58% | 10.50% | 2.27% | Yes |
| 28 | HBIGHarvest Balanced Income & Growth ETF | +4.84% | −1.87% | 8.13% | 0.99% | No |
| 29 | HHISHarvest Diversified High Income Shares ETF | +4.75% | −17.81% | 32.21% | 1.85% | Yes |
| 30 | HBFHarvest US Equity Leaders Income ETF (Hedged) | +4.29% | −2.70% | 8.62% | 0.88% | No |
| 31 | BDIVBrompton Global Dividend Growth ETF | +2.49% | −2.81% | 7.26% | 0.96% | No |
| 32 | CUDCCIBC US High Dividend Covered Call ETF (Unhedged) | +2.00% | −4.26% | 7.65% | 0.55% | No |
| 33 | LEADEvolve Future Leadership Fund (Hedged) | −0.20% | −9.73% | 12.13% | 0.92% | No |
| 34 | EDGFBrompton European Dividend Growth ETF | −1.22% | −6.80% | 7.76% | 0.86% | No |
| 35 | BIGYEvolve US Equity UltraYield ETF | −12.16% | −35.84% | 32.59% | 0.61% | Yes |
Too new to rank this year: CMAX, EASY, HHII, HONE, HPYE, INTY, PAYG, PAYU, USHI and WHYP.
How We Rank
We rank by total return for 2026, starting from each fund's close on December 31, 2025 and reinvesting every distribution in more units on its pay date, which gives figures similar to what fund managers report. Each fund is ranked once on its main Canadian-dollar units, and funds launched during the year are listed without a rank.
Past returns don't predict future returns. This article is written automatically from market data and updated every trading day; it is for information only and is not investment advice. Check each provider's documents before investing.