Gold is a hot commodity and a popular investment. The precious metal has gained 19% this year to date, and 38% over the past 12 months. While I expect gold to continue to post gains, those profits won’t come in a straight line. The new world of option income ETFs enables investors to gain exposure to underlying assets and earn attractive dividend yields along the way. Let’s examine three income-generating, gold-focused ETFs.

FT Vest Gold Strategy Target Income ETF (IGLD)

IGLD employs a synthetic long position (long calls, short puts with the same strike and expiration) to give investment exposure to the SPDR Gold Shares ETF (GLD). At-the-money calls on GLD are sold to cover a portion of the total GLD exposure. Currently, the options overwrite covers 35% of the portfolio leaving 65% with 100% exposure to any gains in gold. The short call options position gives a current distribution yield of 7.26%. Dividends are paid monthly.

Simplify Gold Strategy PLUS Income ETF (YGLD)

YGLD utilizes gold futures to offer investors 150% leverage on the price of gold. For income, Simplify writes short-term credit spreads on a range of assets, including major market indexes, Bitcoin, and GLD. YGLD pays quarterly dividends with a current yield of 2.0%. Simplify’s strategy with its “PLUS Income” ETFs is to load up dividend payments in the second half of the year. YGLD is designed for investors seeking leveraged exposure to the price of gold.

YieldMax Gold Miners Option Income Strategy ETF (GDXY)

The GDXY portfolio holdings consist of a synthetic long position on the VanEck Gold Miners ETF (GDX). Mining stocks can provide leveraged profit gains as the price of precious metals increases. The fund utilizes call option credit spreads to generate income for paying dividends. Credit spreads allow the ETF to earn additional profits if the price of gold moves rapidly higher. GDXY pays monthly dividends, currently yielding 51.7%. The YieldMax ETFs are known for their high yields, and you can expect most of the returns to come from dividend income.

These three ETFs offer significantly different strategies and dividend policies, providing exposure to the price of gold. We currently have two out of three recommended by our ETF Income Edge service and are seriously considering the third. Gold is hot, and gold-plus-dividends is a winning combination.