Best TSX Covered Call ETFs of 2026
TSX covered call ETFs follow the Canadian market as a whole through the S&P/TSX 60, the 60 largest companies on the Toronto Stock Exchange. That makes them heavy in banks, energy and materials, the backbone of the Canadian market.
Because they hold Canadian stocks, their distributions can include eligible Canadian dividends, which can matter in a non-registered account. The returns table shows how the different call-writing approaches have compared.
So far in 2026, 3 funds qualify for the ranking: CNCL heads it at +16.30%, and ETSX closes it at +11.58%. Every fund in this small group is up this year.
Key Takeaways
- CNCL leads the field at +16.30% all in.
- First and last are only 4.7 percentage points apart.
- Only 3 funds here have a full year of results, so a single fund's choices move the ranking a lot.
How All 3 Funds Ranked in 2026
1. CNCL: Global X Enhanced S&P/TSX 60 Covered Call ETF
First place belongs to CNCL, with a total return of +16.30%. Its return is close to evenly split, 8.2% from the units against 8.1 percentage points from payouts. As for its setup, it writes calls on roughly 40 to 50% of the portfolio and it uses about 25% leverage, with a current yield of 8.40% and an MER of 1.66%. Some of that strong showing comes from leverage, which amplifies moves in both directions. It is the enhanced twin in its Global X pair, with about 25% more exposure than the plain version.
2. CNCC: Global X S&P/TSX 60 Covered Call ETF
In second, CNCC has returned +13.99%. The units added 7.6% and the payouts 6.4 percentage points, a fairly even mix. On how it works, it writes calls on roughly 40 to 50% of the portfolio. At the current price, the payout works out to 6.73%, against an MER of 0.5%. Several of its sister funds also trade in U.S. dollar units, alongside an enhanced twin with light leverage for investors who want more exposure.
3. ETSX: Evolve S&P/TSX 60 Enhanced Yield Fund
ETSX sits at the foot of this short table, at +11.58%. Distributions contributed 8.2 percentage points, more than the 3.3% from a rising price. As it stands, it writes calls on about 33% of the portfolio, paying 9.20% a year with an MER of 0.68%.
What to Watch in TSX Funds
Funds that follow the TSX 60 hold much the same companies, so the differences come from strategy: how much of the portfolio is under calls and whether leverage is used.
If you hold these in a non-registered account, the tax character of the distributions can also differ from fund to fund, which is worth checking alongside the return.
How to Compare Them Yourself
Look at total return before anything else. These funds trade some price growth for income, so a flat unit price can sit alongside a perfectly good result once the payouts are added in.
Consider the two halves of the return separately. If you live off distributions, you'll want a fund whose price has held up, because a falling price can lead to a smaller payout later.
Don't forget the details that compound over time: the MER, any leverage, and how much of the portfolio has calls written on it. You can line up any five funds in our Compare tool to see them side by side.
All 3 Funds Ranked
How We Rank
Rankings reflect total return for 2026, from the closing price on December 31, 2025, with each distribution reinvested rather than taken as cash, so the figures sit close to what fund managers report. Funds with more than one version are ranked once on their main Canadian-dollar units. A fund launched during the year is listed 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.