Best Real Estate Covered Call ETFs of 2026
Real estate covered call ETFs hold REITs and other property companies, which already pay out much of their rental income, and write calls on them for extra cash flow.
Property shares are sensitive to interest rates, so the funds here can move together when rate expectations shift. Comparing what kind of property each one holds, from apartments to offices to industrial space, helps explain why they differ.
From first to last, the 2 funds stretch from RMAX at +5.88% to HGR at +1.09%. Both ends of the table are in the black, so every one of the 2 has made money so far in 2026.
Key Takeaways
- The strongest result comes from RMAX: +5.88%.
- With just 4.8 percentage points between first and last, other details such as cost and payout style matter more.
- This is a small corner of the market, so the whole group fits in one table.
How Both Funds Ranked in 2026
1. RMAX: Hamilton REITs Yield Maximizer ETF
The clear front-runner this year is RMAX, at +5.88%. The price has drifted down 3.2%, yet 9.1 percentage points from distributions has carried it into the black. Its MER of 0.79% buys a 11.04% yield from a fund where it adjusts how much of the portfolio it writes calls on as markets change and it doesn't offset currency moves. The family behind it skips leverage altogether, relying on richer at-the-money premiums rather than borrowed exposure for its income. Its biggest bets are Public Storage, American Tower Corp and Simon Property Group Inc.
2. HGR: Harvest REIT Leaders Income ETF
The weakest result of the two belongs to HGR: +1.09%. Without distributions it would be negative; the units are down 6.1%, and payouts added 7.2 percentage points. On the strategy, it writes calls on about 33% of the portfolio and it carries a hedge against moves in the loonie. You'd pay an MER of 0.99% for a current yield of 7.22%. Harvest's Equity Income funds own a concentrated group of large companies and write calls on part of the portfolio to fund a monthly payout.
What to Watch in Real Estate Funds
Interest rates are the thing to watch. When borrowing costs rise, property values and REIT prices tend to come under pressure, and that shows up in the price return even when the payouts keep coming.
Also check where the properties are. A fund focused on Canadian REITs can behave very differently from one holding global property companies, especially once currency moves are counted.
How to Compare Them Yourself
Begin with total return. Price on its own misses the distributions, which for a covered call ETF are often most of the story, so it understates how a fund has really done.
Separate the payout from the price. A fund can post a respectable total return while its price drifts lower, and that drift matters if you plan to hold it for years.
Finally, check what you are paying for and what you are holding. Leverage lifts both the payout and the swings, the MER comes out of your return every year, and two funds with different names can hold almost the same companies. Our Compare tool puts any five funds side by side so you can check all of this for yourself.
Both Funds Ranked
How We Rank
How we measure: total return for 2026, starting from the last close of the previous year (December 31, 2025), with distributions reinvested as they're paid, giving values similar to fund managers' own reports. One ranking per fund, based on its main Canadian-dollar units, with other versions noted. Funds without a full year are listed but left unranked.
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.