Best S&P 500 Covered Call ETFs of 2026
S&P 500 covered call ETFs are built around the 500 largest U.S. companies and sell calls against them. Because they start from the same index, they're some of the easiest funds on the site to compare head to head.
What separates them is how the calls are written: how much of the portfolio is covered, how far out of the money the calls are, how often they roll, and whether the fund uses leverage. Currency hedging and the MER make a difference too, and the returns table shows how those choices have added up over time.
The 4 ranked funds range from USCL, up +13.15%, to ESPX, at +5.08%. None of the 4 is underwater this year.
Key Takeaways
- USCL has the highest total return, +13.15%.
- A narrow 8.1 percentage points gap from best to worst suggests the sector itself drove most of the result.
- Small groups can reshuffle quickly, so the order here can change from one month to the next.
How All 4 Funds Ranked in 2026
1. USCL: Global X Enhanced S&P 500 Covered Call ETF
USCL sits at the top of the group with a total return of +13.15% so far in 2026. The income side carried it, 10.9 percentage points from distributions next to a 2.2% rise in price. To put it plainly, it writes calls on roughly 40 to 50% of the portfolio, it uses about 25% leverage and it lets currency moves pass through rather than hedging them. Borrowing to own more has paid off this year, and it is the same lever that would deepen a loss in a bad year. An annualized yield of 12.74% comes with an MER of 1.49%. Funds in this line-up combine equity growth, dividends and call premiums, and the enhanced versions stretch all three a little further with modest leverage.
2. USCC: Global X S&P 500 Covered Call ETF
Close on its heels, USCC is up 8.77% this year. Distributions did the heavy lifting here, contributing 6.2 percentage points against a 2.5% gain in price. Mechanically, it writes calls on roughly 40 to 50% of the portfolio and it has no currency hedge, all for an MER of 0.47% and a current yield of 7.12%. Its line-up stretches from the TSX 60 and S&P 500 to banks, energy, telecoms, miners, metals and emerging markets, all using the same active call writing. Other units of the same fund are USCC.U in U.S. dollars.
3. JEPI: JPMorgan US Equity Premium Income Active ETF (Unhedged)
JEPI lands 3rd of the 4, at +8.41% so far in 2026. It is a return built on income: 6.5 percentage points came from distributions and only 1.9% from a higher unit price. For a 0.39% MER, it currently yields 6.62%, and it writes calls on about 20% of the portfolio and exchange-rate moves flow into its return, as it doesn't hedge. Its portfolio is led by APPLE INC, NVIDIA CORP and MICROSOFT CORP.
4. ESPX: Evolve S&P 500 Enhanced Yield Fund (Hedged)
In last place is ESPX, with a total return of +5.08%. The units alone tell a weaker story, down 3.8%, but distributions worth 8.8 percentage points turn it positive. Structurally, it writes calls on about 33% of the portfolio and it holds a hedge that offsets most currency swings; the annualized yield stands at 10.98%, the MER at 0.66%. It's also sold as ESPX.B (unhedged) and ESPX.U in U.S. dollars.
What to Watch in S&P 500 Funds
With the same index underneath, the differences come down to how the calls are written: how much of the portfolio is covered, how far from the current price the calls are set, and whether leverage is added on top.
Currency hedging can also separate funds that otherwise hold the same stocks, since an unhedged fund carries the move in the U.S. dollar against the loonie.
How to Compare Them Yourself
Total return is the place to start. A covered call ETF can look sluggish on a price chart while its distributions quietly do the heavy lifting.
Then split price from payouts. If you plan to spend the income, a fund whose price holds steady is generally the more sustainable choice.
One more step: compare costs and construction. The MER, the use of leverage and the share of the portfolio under calls all shape what you'll earn, and our Compare tool lets you check them for up to five funds.
All 4 Funds Ranked
| # | Fund | 2026 Total Return | Price Return | Annualized Yield | MER | Leverage |
|---|---|---|---|---|---|---|
| 1 | USCLGlobal X Enhanced S&P 500 Covered Call ETF | +13.15% | +2.21% | 12.74% | 1.49% | Yes |
| 2 | USCCGlobal X S&P 500 Covered Call ETF | +8.77% | +2.53% | 7.12% | 0.47% | No |
| 3 | JEPIJPMorgan US Equity Premium Income Active ETF (Unhedged) | +8.41% | +1.92% | 6.62% | 0.39% | No |
| 4 | ESPXEvolve S&P 500 Enhanced Yield Fund (Hedged) | +5.08% | −3.76% | 10.98% | 0.66% | No |
Too new to rank this year: JEPH.
How We Rank
We rank by total return over 2026, measured from the closing price on December 31, 2025 with each distribution reinvested, which gives figures similar to what fund managers report. A fund with several unit classes is ranked once, on its main Canadian-dollar units, and funds launched part way through the year are named but left out of the ranking.
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.