Investors have watched stocks like Amazon and Nvidia soar but have been left wondering if there will ever be a way to get any dividends from them. Both stocks have taken off yet Nvidia yields a measly 0.03% (you read that right, 3/10ths of 1%) while Amazon pays no dividend at all.

Enter single-stock covered call ETFs. They provide investment exposure to popular stocks like Amazon and Nvidia, with the added benefit of attractive dividend yields from selling call options. Let me clarify before we go further, we as investors are not selling call options, the traders managing the funds are. We just collect the dividends and any capital appreciation. YieldMax was the first to introduce this type of ETF. They currently offer over two dozen single-stock covered call ETFs. 

Kurv, another fund manager in this space, launched six single-stock ETFs in November 2023. The Kurv ETFs have corresponding YieldMax ETFs. They are fascinating to compare because the two fund sponsors take very different approaches to the covered call side.

Last week, I compared the two covered call ETFs “covering” Apple, Inc. (AAPL). You can read that article HERE. I wrote up the ETF comparison for the two covered call funds the previous week using Amazon.com (AMZN) as the underlying stocks. That article is HERE.

I’m comparing the Alphabet Inc. (GOOGL) covered call ETFs this week. Note that these ETFs pay variable-rate monthly distributions, and the current yields reported here are from the fund sponsor websites.

The YieldMax™ GOOGL Option Income Strategy ETF (GOOY) launched on July 27, 2023. GOOY has a current distribution rate of 28.37%.

The Kurv Yield Premium Strategy Google (GOOGL) ETF (GOOP) came to market on October 30, 2023. Kurv states the current distribution rate for AMZP is 19.63%.

I like saying these stock symbols out loud: GOOY and GOOP!

Here are the results for the two ETFs. I am using the same start and end dates for each of these weekly reports. 

Since the late 2023 launch of GOOP, the ETF significantly outperformed its YieldMax counterpart, GOOP posted a total return of 40.59% compared to 25.62% from GOOY.

Here is the scorecard for the first three ETF battles.

·       For Amazon.com, I rated it as a tie between AMZY and AMZP.

·       For Apple, Inc. The Kurv fund, symbol AAPY, beat its YieldMax counterpart APLY.

·       Today’s article clearly shows GOOP from Kurv taking the title over GOOY.

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