Best Financials & Banks Covered Call ETFs of 2026
Canada's big banks and insurers are some of the steadiest dividend payers in the country, so it's no surprise they're one of the most popular groups for covered call ETFs. These funds hold names like the Big Six banks and the major life insurers, then write calls on part of the portfolio for extra income on top of the dividends.
Where they differ is in the details. Some stick to the six largest Canadian banks in equal weights, while others mix in insurers, asset managers or U.S. financials. How much of the portfolio has calls written on it varies from fund to fund, and a few add modest leverage to lift the payout.
Because so many of these funds own the same handful of banks, the holdings section below is worth a look before you own more than one of them.
The spread runs from +76.09% for PIC.A down to +1.87% for HUBL, across 19 ranked funds. None of the 19 is underwater, and the typical fund has returned 26.6%.
Key Takeaways
- First place belongs to PIC.A at +76.09% so far in 2026.
- There's a 74.2 percentage points gap between the best and worst result in the same sector.
- The median fund is up 26.6% once distributions are counted.
The Top 5 in 2026
1. PIC.A: Mulvihill Premium Income Corporation
PIC.A has the highest total return here, +76.09% so far in 2026. It owes most of its result to price, up 58.5%, with 17.6 percentage points of payouts besides. How it gets there matters too: it has the ability to write calls on part of the portfolio and it uses leverage through its split share structure. Leverage has been a tailwind this year, though it adds risk in both directions. Its yield stands at 11.03% today, and its MER at 2.6%. The names carrying the most weight are Royal Bank of Canada, Toronto Dominion Bank and Canadian Imperial Bank of Commerce.
2. CBNK: Mulvihill Canadian Bank Enhanced Yield ETF
CBNK follows in second, up 41.88% this year. Most of this came from the units rising 32.2%; the distributions added 9.6 percentage points. As it stands, it adjusts how much of the portfolio it writes calls on as markets change and it uses about 25% leverage, paying 9.17% a year with an MER of 0.79%. Part of what lifted it is borrowed exposure, a bet that has paid off while markets cooperated. Leading its holdings are Bank of Nova Scotia, Canadian Imperial Bank of Commerce and National Bank of Canada.
3. SIXY: Evolve Big Six Canadian Banks UltraYield Index ETF
Ranked third, SIXY has delivered +31.45% this year. The units added 12.0%, but distributions, at 19.5 percentage points, carried most of it. One detail stands out: it writes calls on about 50% of the portfolio and it uses up to 33% leverage. Some of the gap over its peers is leverage at work, which helps on the way up and hurts on the way down. The payout rate today is 21.88% annualized. Half of each portfolio in this line-up is left uncovered, so those holdings keep their full upside while the other half earns option income. Inside, the largest weights go to Toronto-Dominion Bank, Bank of Nova Scotia and Canadian Imperial Bank of Commerce.
4. BANK: Evolve Canadian Banks and Lifecos Enhanced Yield Index Fund
The fourth-best result belongs to BANK: +29.72%. Distributions of 15.3 percentage points and a 14.4% rise in the units contributed in similar amounts. Its MER of 0.82% buys a 16.45% yield from a fund where it writes calls on about 33% of the portfolio and it uses about 25% leverage. Its borrowed exposure has paid off this year, a boost that works in reverse when markets drop. Its biggest positions are Bank of Nova Scotia, Toronto-Dominion Bank and Power Corp of Canada.
5. CLSA: Brompton Split Corp. Enhanced Equity Income ETF
Making the cut at the end of the top five is CLSA, up 29.47% this year. The split is close to even, with price adding 14.2% and payouts 15.2 percentage points. In practice, it has the ability to write calls on part of the portfolio, it uses leverage through its split share structure and it has no currency hedge. Leverage has helped in a rising market, and it would cut just as deep in a falling one. It is yielding 16.28% at the moment, with 10.71% charged as its MER. The top of its portfolio includes Life & Banc Split Corp. Class A Shares, Brompton Split Banc Corp. Class A Shares and Dividend 15 Split Corp. Class A Shares.
What Sets the Leaders Apart
The top five didn't win by paying more. Their distributions averaged 15.5 percentage points against 7.3 percentage points for the bottom five. They won on price, +26.26% versus −2.92%, which comes down to what sits inside each fund and how much of its upside is sold off through calls.
Leverage has been a common thread at the top: 5 of the top five use it, compared with 0 of the bottom five. It has done its job this year, but the same borrowing would weigh on them first if markets slip.
SIXY has managed both, the group's top yield at 21.88% and a 3rd-place finish out of 19 on total return.
The Bottom 5 in 2026
15. BFIN: Brompton North American Financials Dividend ETF
At number 15th, BFIN is up 7.17% this year. Distributions contributed 5.6 percentage points, more than the 1.6% from a rising price. With most of its money in North American companies, it hasn't followed the Canadian names that led the group. As for the moving parts, it adjusts how much of the portfolio it writes calls on as markets change and it hedges, so exchange rates have little effect on its return. Its annualized yield currently sits at 7.79%, and the MER is 0.96%. Its other classes are BFIN.U in U.S. dollars.
16. ZWK: BMO Covered Call US Banks ETF
Among the laggards, ZWK sits 16th with +6.34%. Income led the way: 5.6 percentage points from distributions and 0.7% from the units. It holds mostly U.S. companies, a different market from the Canadian names at the top of the table. Because its foreign holdings are unhedged, exchange rates are part of its return. It's worth noting that it writes calls on roughly 20 to 50% of the portfolio; its yield sits at 7.11%, with an MER of 0.71%. Like its sister funds, it gives up some upside in strong markets in exchange for steady option income. Look for it as well under ZWK.T (Target Cash Flow Units).
17. CALL: Evolve US Banks Enhanced Yield Fund (Hedged)
CALL is up 3.99% this year, good for 17th of 19. The units alone tell a weaker story, down 4.8%, but distributions worth 8.8 percentage points turn it positive. Its focus on U.S. names has kept it apart from the Canadian holdings that led this year. Strategy-wise, it writes calls on about 33% of the portfolio and its foreign currency is hedged, and today it yields 11.22% for an MER of 0.62%. It is offered in other versions as well, CALL.B (unhedged) and CALL.U in U.S. dollars.
18. FMAX: Hamilton U.S. Financials Yield Maximizer ETF
Next from the bottom is FMAX, at +2.60% and ranked 18th. A 7.2% decline in the units has been more than covered by 9.8 percentage points from distributions. Its U.S. tilt explains part of the gap, since Canadian names have done the leading. Unhedged foreign holdings mean a stronger Canadian dollar can take a bite out of its result. On the options front, it adjusts how much of the portfolio it writes calls on as markets change, giving it a current yield of 12.10% at a 0.8% MER. Its managers sell at-the-money calls but raise or lower the portion of the portfolio under them as conditions change, trading some income for growth or the reverse.
19. HUBL: Harvest US Bank Leaders Income ETF
HUBL has the weakest result here, +1.87% so far in 2026. Despite a 4.9% dip in its unit price, 6.8 percentage points of distributions leaves it ahead overall. Being mostly in U.S. companies, it hasn't kept pace with the Canadian names leading the group. Bear in mind that it writes calls on about 33% of the portfolio and it uses a currency hedge. At today's price it yields 8.75% a year, for an MER of 0.99%. Funds in this Harvest family hold roughly equal weights in a focused list of sector leaders and sell calls actively against them. A second listing is available as HUBL.U in U.S. dollars.
What to Watch in Financials & Banks Funds
The biggest thing to check here is overlap. Most of these funds own the same six Canadian banks, so holding two or three of them can give you far less variety than the different names suggest. The funds that stand apart tend to be the ones holding insurers, U.S. banks or European banks instead.
Bank shares also tend to fall together when credit worries or interest-rate cuts hit, and that is when leverage and heavy call writing matter most. A leveraged bank fund will usually top the table in a good year and sink toward the bottom in a rough one.
How to Compare Them Yourself
Begin with the full picture: total return. A covered call fund that pays out heavily can show a flat or falling price even in a good year, so price on its own tells you only part of the story.
It also helps to see how the return was earned. A fund that pays generously while its price slides can wear down your capital over time, while one that holds its price can keep paying for longer.
Then look under the hood. A higher MER eats into every year's return, leverage raises the stakes, and similar-looking funds can own the same companies. Compare any five in our Compare tool.
All 19 Funds Ranked
| # | Fund | 2026 Total Return | Price Return | Annualized Yield | MER | Leverage |
|---|---|---|---|---|---|---|
| 1 | PIC.AMulvihill Premium Income Corporation | +76.09% | +58.47% | 11.03% | 2.60% | Yes |
| 2 | CBNKMulvihill Canadian Bank Enhanced Yield ETF | +41.88% | +32.24% | 9.17% | 0.79% | Yes |
| 3 | SIXYEvolve Big Six Canadian Banks UltraYield Index ETF | +31.45% | +11.98% | 21.88% | Too New | Yes |
| 4 | BANKEvolve Canadian Banks and Lifecos Enhanced Yield Index Fund | +29.72% | +14.40% | 16.45% | 0.82% | Yes |
| 5 | CLSABrompton Split Corp. Enhanced Equity Income ETF | +29.47% | +14.23% | 16.28% | 10.71% | Yes |
| 6 | BKCLGlobal X Enhanced Equal Weight Canadian Banks Covered Call ETF | +29.29% | +17.19% | 11.42% | 1.51% | Yes |
| 7 | ZWBBMO Covered Call Canadian Banks ETF | +27.66% | +21.35% | 6.70% | 0.72% | No |
| 8 | CCCBCIBC Canadian Banks Covered Call ETF | +27.58% | +21.40% | 6.65% | 0.39% | No |
| 9 | BNCPurpose Canadian Financial Income Fund | +27.25% | +23.33% | 3.44% | 0.73% | No |
| 10 | CICCI Canadian Banks Covered Call Income Class ETF | +26.55% | +20.62% | 5.08% | 0.80% | No |
| 11 | BKCCGlobal X Equal Weight Canadian Bank Covered Call ETF | +23.77% | +14.33% | 9.12% | 0.46% | No |
| 12 | HMAXHamilton Canadian Financials Yield Maximizer ETF | +19.17% | +8.03% | 11.73% | 0.77% | No |
| 13 | FLICI U.S. & Canada Lifeco Covered Call ETF | +13.48% | +7.87% | 6.28% | 0.95% | No |
| 14 | EBNKEvolve European Banks Enhanced Yield ETF (Hedged) | +8.83% | −0.44% | 11.10% | 0.87% | No |
| 15 | BFINBrompton North American Financials Dividend ETF | +7.17% | +1.61% | 7.79% | 0.96% | No |
| 16 | ZWKBMO Covered Call US Banks ETF | +6.34% | +0.73% | 7.11% | 0.71% | No |
| 17 | CALLEvolve US Banks Enhanced Yield Fund (Hedged) | +3.99% | −4.84% | 11.22% | 0.62% | No |
| 18 | FMAXHamilton U.S. Financials Yield Maximizer ETF | +2.60% | −7.17% | 12.10% | 0.80% | No |
| 19 | HUBLHarvest US Bank Leaders Income ETF | +1.87% | −4.92% | 8.75% | 0.99% | No |
Too new to rank this year: CFIN, HPYB, MBNK and PAYB.
How We Rank
The ranking is based on 2026 total return: price change from the December 31, 2025 close plus every distribution, reinvested as it's paid. That lands close to the performance fund managers publish. Other versions of a fund are mentioned but not ranked separately, and funds without a full year are listed apart.
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.