Best Energy & Utilities Covered Call ETFs of 2026
Energy and utility companies are a big part of the Canadian market, from oil and gas producers to the pipelines and power companies that pay reliable dividends. Covered call ETFs in this group hold those companies and write calls on them for extra income.
Energy producers swing with oil and gas prices, while utilities and pipelines tend to move more slowly, so it helps to check which side of the group a fund leans toward. Some funds here are global and hold large international producers as well.
Comparing price return with total return over a few years shows how much of each fund's result came from its payouts rather than from commodity prices.
Top of the table this year is ZWEN, up +43.16% in total return; the bottom belongs to RNCL, at −13.56%. 14 out of 16 are ahead on total return, while the median fund is up 19.1%.
Key Takeaways
- ZWEN has the best total return of the group, +43.16%.
- Between the top and bottom funds lies a gap of 56.7 percentage points.
- The fund at the middle of the pack is up 19.1%.
The Top 5 in 2026
1. ZWEN: BMO Covered Call Energy ETF
Out in front is ZWEN, up 43.16% once its payouts are added back in. The price did the heavy lifting, rising 34.4%, with distributions chipping in 8.7 percentage points. For context, it writes calls on roughly 20 to 50% of the portfolio and it holds a hedge that offsets most currency swings; the yield is running at 7.09%, against an MER of 0.72%. Calls in this line-up usually run one to two months, a window chosen so the option value melts away steadily in the fund's favour as expiry nears. ConocoPhillips, EOG RESOURCES INC and Canadian Natural Resources Ltd make up its largest positions. The same strategy is available as ZWEN.T (Target Cash Flow Units).
2. HPF: Harvest Energy Leaders Income ETF
Behind the leader comes HPF, with +42.04%. Its units have climbed 33.0%, and payouts worth 9.0 percentage points come on top of that. Under its current approach, it writes calls on about 33% of the portfolio and it neutralizes most foreign exchange moves with a hedge, and the result is a 7.48% yield for 0.99%. Harvest's managers set the calls each month from what the payout needs after dividends, then watch them daily and can buy them back, let them expire or let shares be called away. Its holdings start with SLB Limited, TC Energy Corporation and ConocoPhillips. Other units: HPF.U in U.S. dollars.
3. NXF: CI Energy Giants Covered Call ETF (Hedged)
NXF holds third place with a +35.94% total return. A strong move in price, 26.2%, accounts for most of it, with 9.7 percentage points from distributions. Taking a closer look, it writes calls on about 25% of the portfolio and it hedges against changes in the Canadian dollar; its yield sits at 9.96% and its MER at 0.71%. The biggest slices of the portfolio go to Petroleo Brasileiro SA Petrobras - ADR, Shell PLC - ADR and Exxon Mobil Corp. Also listed: NXF.B (unhedged) and NXF.U in U.S. dollars.
4. EMAX: Hamilton Energy Yield Maximizer ETF
EMAX lands in fourth, up 33.08% with payouts included. The 22.0% gain in its unit price is the main source, with 11.0 percentage points more from distributions. By design, it adjusts how much of the portfolio it writes calls on as markets change and its return includes the move in the Canadian dollar, as it doesn't hedge. Its current payout rate is 10.75% a year, set against an MER of 0.8%. Its family writes calls at the money, right at the current price, which earns more per contract but gives up gains above that level, so only part of the portfolio is covered at a time. Among its largest holdings are ConocoPhillips, Suncor Energy Inc and EOG Resources Inc.
5. NRGI: Ninepoint Energy Income Fund
NRGI sneaks into the top five on a total return of +32.96%. A 20.6% gain in price and 12.4 percentage points from payouts give it a well-balanced result. That comes from a fund yielding 11.62% with an MER of 1.92%, where it adjusts how much of the portfolio it writes calls on as markets change and it stays unhedged, so exchange rates add to or subtract from the return. Capital Power Corp, Cenovus Energy Incorporation and Diamondback Energy Inc are its largest positions.
What Sets the Leaders Apart
Payouts barely separate the two groups: the top five collected 10.2 percentage points from distributions on average and the bottom five 9.0 percentage points. The real split is in price, +27.26% for the leaders against −10.89% for the laggards. That points to the holdings and to how hard each fund writes calls, since heavy call writing gives away the biggest gains.
More of the laggards use leverage, 2 against 0 at the top, and in a soft year for their holdings that has made things worse.
Notice where the biggest yield lands: UTES, at 20.17%, ranks 13th of 16. A rich payout can hide a falling price, and total return is what shows both.
Don't look to fees for the answer: the typical leader charges 0.80%, the typical laggard 0.71%.
The Bottom 5 in 2026
12. ZWU: BMO Covered Call Utilities ETF
ZWU ranks 12th after a total return of +7.30%. Here the payouts lead the way, 6.3 percentage points against 1.0% from the units. When it comes to how it's run, it writes calls on roughly 20 to 50% of the portfolio and its foreign holdings are hedged into Canadian dollars, for a 7.51% yield and an MER of 0.71%. Its family writes calls slightly above the current price on only part of each portfolio, so the uncovered holdings keep their full room to climb. There's also a version under ZWU.T (Target Cash Flow Units).
13. UTES: Evolve Canadian Utilities Enhanced Yield Index Fund
UTES has posted +5.74% so far in 2026, ranking 13th. The price has drifted down 9.3%, yet 15.0 percentage points from distributions has carried it into the black. Its approach is worth a look, since it writes calls on about 33% of the portfolio and it uses about 25% leverage. That leverage means a weak year for its holdings shows up even more in its own result. The fund carries a 20.17% annualized yield and an MER of 0.85%.
14. CUTL: CI Utilities Giants Covered Call ETF (Hedged)
CUTL ends up 14th on a total return of +2.10%. Without distributions it would be negative; the units are down 3.0%, and payouts added 5.1 percentage points. With an annualized yield of 5.39% and an MER of 0.69%, keep in mind that it writes calls on about 25% of the portfolio and it carries a hedge against moves in the loonie. The fund is also listed as CUTL.B (unhedged).
15. RNCC: Global X Equal Weight Canadian Telecommunications Covered Call ETF
Placed 15th, RNCC has returned −10.79% so far in 2026. A 19.3% drop in the unit price has been too much for its 8.5 percentage points of distributions to cover. Of note, it writes calls on roughly 30 to 50% of the portfolio; the yield runs at 11.51% and the MER at 0.55%. Funds in this line-up tend to do best in flat or falling markets, where the premiums cushion the result, and to lag in strong rallies, where the calls give up gains.
16. RNCL: Global X Enhanced Equal Weight Canadian Telecommunications Covered Call ETF
Of all 16 funds, RNCL has the lowest total return, −13.56%. Distributions added 10.3 percentage points, but a 23.9% fall in the unit price outweighed them. Add in a 1.96% MER, and the hurdle for a good year gets taller. On the options front, it writes calls on roughly 30 to 50% of the portfolio and it uses about 25% leverage. Its use of leverage has amplified a disappointing year. It yields 13.65% a year at the current price. The extra exposure in its family comes from borrowing, which has a cost, so the enhanced fund only pulls ahead of its twin when the holdings earn more than that cost.
What to Watch in Energy & Utilities Funds
Keep producers and utilities apart in your head. Oil and gas companies follow commodity prices, while pipelines, power and telecom companies move more like bonds, so a fund's mix between the two goes a long way toward explaining where it ranks.
Energy is also where call writing can cost the most in a rally. When oil prices jump, a fund that has sold calls on most of its holdings can give up much of the gain, while one with lighter coverage keeps more of it.
How to Compare Them Yourself
Total return is the fairest yardstick. A falling unit price can sit alongside a healthy result when the distributions are large enough, and only total return captures both.
Break the result down into price and income. Two funds with the same total return can get there very differently, and the one with a steadier price usually has an easier time keeping its payout.
Before deciding, weigh the MER, the use of leverage, and how much of the portfolio has calls written on it. Our Compare tool sets out any five funds together.
All 16 Funds Ranked
| # | Fund | 2026 Total Return | Price Return | Annualized Yield | MER | Leverage |
|---|---|---|---|---|---|---|
| 1 | ZWENBMO Covered Call Energy ETF | +43.16% | +34.42% | 7.09% | 0.72% | No |
| 2 | HPFHarvest Energy Leaders Income ETF | +42.04% | +33.00% | 7.48% | 0.99% | No |
| 3 | NXFCI Energy Giants Covered Call ETF (Hedged) | +35.94% | +26.25% | 9.96% | 0.71% | No |
| 4 | EMAXHamilton Energy Yield Maximizer ETF | +33.08% | +22.05% | 10.75% | 0.80% | No |
| 5 | NRGINinepoint Energy Income Fund | +32.96% | +20.58% | 11.62% | 1.92% | No |
| 6 | ENCLGlobal X Enhanced Canadian Oil And Gas Equity Covered Call ETF | +32.57% | +17.58% | 15.14% | 1.88% | Yes |
| 7 | OILYEvolve Canadian Energy Enhanced Yield Index Fund | +31.80% | +16.29% | 16.36% | 1.96% | Yes |
| 8 | ENCCGlobal X Canadian Oil & Gas Equity Covered Call ETF | +26.62% | +14.95% | 11.85% | 0.76% | No |
| 9 | HUTEHarvest Utilities Leaders Enhanced Income ETF | +11.54% | +2.83% | 10.12% | 1.89% | Yes |
| 10 | HUTLHarvest Utilities Leaders Income ETF | +10.23% | +3.10% | 8.23% | 0.64% | No |
| 11 | UMAXHamilton Utilities Yield Maximizer ETF | +8.14% | −3.34% | 12.25% | 0.79% | No |
| 12 | ZWUBMO Covered Call Utilities ETF | +7.30% | +1.04% | 7.51% | 0.71% | No |
| 13 | UTESEvolve Canadian Utilities Enhanced Yield Index Fund | +5.74% | −9.28% | 20.17% | 0.85% | Yes |
| 14 | CUTLCI Utilities Giants Covered Call ETF (Hedged) | +2.10% | −3.02% | 5.39% | 0.69% | No |
| 15 | RNCCGlobal X Equal Weight Canadian Telecommunications Covered Call ETF | −10.79% | −19.30% | 11.51% | 0.55% | No |
| 16 | RNCLGlobal X Enhanced Equal Weight Canadian Telecommunications Covered Call ETF | −13.56% | −23.87% | 13.65% | 1.96% | Yes |
Too new to rank this year: CUTE and PAYI.
How We Rank
The figures are total returns for 2026, measured from December 31, 2025, the last close of the prior year, with every distribution reinvested, which brings them close to the figures fund managers report. Funds offered in hedged, unhedged or U.S. dollar versions are ranked once, and funds that are newer than the year are listed separately.
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.