Single-stock covered call ETFs provide investment exposure to popular stocks like Amazon and Nvidia, with the added benefit of attractive dividend yields from selling call options. YieldMax was the first to introduce this type of ETF. They currently offer more than two dozen single-stock covered call ETFs.
Kurv 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.
Over the next few weeks, I will publish a series comparing the same stock ETFs from the two ETF companies. This week, the comparison is between the Amazon (AMZN) covered call ETFs. Note that these ETFs pay variable-rate monthly distributions, and the current yields reported here are from the fund sponsor websites.
The YieldMax™ AMZN Option Income Strategy ETF (AMZY) launched on July 24, 2023. AMZY has a current distribution rate of 59.73%.
The Kurv Yield Premium Strategy Amazon (AMZN) ETF (AMZP) came to market on October 30, 2023. Kurv states the current distribution rate for AMZP is 27.54%.
You can see that the AMZY yields more than doubles the payout rate from AMZP. Let’s look at total returns since the AMZP launch:
The total returns are comparable. AMZP returned 55.90%, while AMZY returned 48.76% over the same period. The AMZY share price was down 7.92%, while AMZP shares appreciated by 28.90%.
For this first ETF battle, the Kurv ETF, AMZP, is the winner by a slight amount. I have run these comparisons a couple of times in the past, and there have been near ties and wins by ETFs from each of the fund companies.
Along with Jay Soloff, I run the ETF Income Trader newsletter focused on single stock, covered-call ETFs with the best potential for total gains. The comparison in today’s article is just a small sample of the deeper research we do to find single stock, covered-call ETFs with capital appreciation potential and high yields. Click her for details and how to collect the next high-yield payout.
A new system to collect and extra $6,225 before February 28th
I’ve just released updated details on a new system for collecting steady dividend income each and every month. With it, you could collect an average of $4,275 in extra income every month... and even this far into this month you could still collect $6,225 in extra cash over the next few weeks.
