Best Other U.S. Indexes Covered Call ETFs of 2026
These covered call ETFs follow a U.S. index other than the S&P 500 or the Nasdaq-100, such as the Dow Jones Industrial Average or the Russell 2000 small caps. Each index behaves differently, so these funds are best compared with the chart and the returns table rather than assumed to move together.
Small-cap indexes are more volatile than large-cap ones, which usually means higher option income and bigger swings in price.
Among the 3 funds we rank, RSCL comes first with +20.71% and ZWA comes last with +3.69%. Each of the 3 funds has a gain to show so far in 2026.
Key Takeaways
- First place goes to RSCL, at +20.71% with distributions counted.
- Fund selection has been worth 17.0 percentage points between the top and bottom of the table.
- More funds will join this ranking as newer ones reach a full year.
How All 3 Funds Ranked in 2026
1. RSCL: Global X Enhanced Russell 2000 Covered Call ETF
RSCL has been the standout of 2026 so far, returning +20.71% once distributions are counted. Most of that came from its payouts, with distributions adding 17.1 percentage points while the unit price rose a more modest 3.6%. Under the hood, it writes calls on about 50% of the portfolio, it uses about 25% leverage and it keeps its foreign currency exposure as is; it yields 17.16% a year for an MER of 1.8%. Its use of leverage has been an advantage this year, one that can reverse quickly. As an enhanced fund, it holds about 1.25 times its net assets in the same portfolio as its plain sibling, using light borrowing to add yield and growth potential. Most of its weight sits in names like JFROG LTD, MOOG INC and UMB FINANCIAL CORP.
2. RSCC: Global X Russell 2000 Covered Call ETF
Not far back sits RSCC, which has returned +14.66%. The units added 3.7%, but distributions, at 10.9 percentage points, carried most of it. In terms of design, it writes calls on roughly 40 to 50% of the portfolio and its return includes the move in the Canadian dollar, as it doesn't hedge. For income seekers, it yields 13.77%; for cost watchers, the MER is 0.78%. Global X manages the calls in this family actively rather than on a fixed schedule, adjusting to market conditions and to big moves in individual holdings. The same fund also comes as RSCC.U in U.S. dollars.
3. ZWA: BMO Covered Call Dow Jones Industrial Average Hedged to CAD ETF
ZWA finishes last of the three, at +3.69% so far in 2026. A 1.4% fall in the units was more than offset by 5.1 percentage points in distributions. In practice, it writes calls on roughly 20 to 50% of the portfolio and it neutralizes most foreign exchange moves with a hedge, which today works out to a 6.61% yield at an MER of 0.72%. It belongs to one of the longest-running covered call families in Canada, which dates back to 2011 and now spans banks, utilities, dividend payers and more. Other versions are available as ZWA.T (Target Cash Flow Units).
What to Watch in Other U.S. Indexes Funds
The index behind each fund matters most here. The Dow, the Russell 2000 and other U.S. benchmarks can have very different years, so it helps to compare a fund against the index it follows before comparing it with its neighbours.
Small-company indexes tend to swing more, which can mean richer option income and bigger moves in price in both directions.
How to Compare Them Yourself
Put total return at the top of your list. A covered call fund's price tells you only half of what it earned, because the rest was paid to you along the way.
Next, see how the return breaks down. A fund that earns mostly through payouts while its price sinks is spending its capital, while one that holds its price can keep paying for longer.
Then weigh the trade-offs. Leverage raises the payout and the risk, call coverage decides how much upside you give up, and the MER is charged every year whatever happens. Our Compare tool puts these numbers next to each other.
All 3 Funds Ranked
| # | Fund | 2026 Total Return | Price Return | Annualized Yield | MER | Leverage |
|---|---|---|---|---|---|---|
| 1 | RSCLGlobal X Enhanced Russell 2000 Covered Call ETF | +20.71% | +3.57% | 17.16% | 1.80% | Yes |
| 2 | RSCCGlobal X Russell 2000 Covered Call ETF | +14.66% | +3.74% | 13.77% | 0.78% | No |
| 3 | ZWABMO Covered Call Dow Jones Industrial Average Hedged to CAD ETF | +3.69% | −1.45% | 6.61% | 0.72% | No |
How We Rank
The order is set by 2026 total return: price change since the close on December 31, 2025, with distributions reinvested as they're paid, which gives values similar to what fund managers report. Hedged, unhedged and U.S. dollar versions of a fund count once, through its main Canadian-dollar units. Newer funds that haven't been around for the whole year are shown but not ranked.
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.