Consider These 3 Monthly Dividend ETFs Offering Better Yield and Potential

January 20, 2026

Investment Options and Yield Insights

JPMorgan Equity Premium Income (JEPI) offers an 8% yield, whereas NEOS alternatives like SPYI and QQQI boast yields of 11.57% and 13.69%, respectively.
This year, SPYI has increased by 3.37%, while JEPI has stayed relatively stagnant. It seems that exposure to high-tech sectors has given SPYI an edge.
QQQI’s yield surpasses SPYI by about 2-3 percentage points, attributed to the higher costs associated with Nasdaq 100 options.
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There’s been a noticeable trend among income investors leaning towards the JPMorgan Equity Premium Income ETF (JEPI). This preference makes sense; it offers a robust dividend yield of 8%, even if it participates less in market rallies. Still, alternatives such as NEOS S&P 500 High Income ETF (SPYI) and NEOS NASDAQ-100 High Income ETF (QQQI) are drawing attention due to their higher yields. The last four years of market growth have indeed favored these ETFs, leading to some copycat strategies that perhaps got it right this time.

So, is JEPI the best default choice for covered call ETFs? Maybe not. If you’re anticipating an ongoing market rise, other higher-yielding funds could really enhance overall returns. For those focused on steady cash flow while waiting for the market to rebound, these alternatives might be worth considering.

The NEOS S&P 500 High Income ETF employs an index and uses call option overlays to create significant income, maintaining industry concentration akin to the S&P 500. Unlike JEPI, SPYI follows a more passive and standard approach to covered calls.

SPYI operates with a bit more activity compared to the more defensive JEPI. Offering a monthly dividend yield of 11.57%, it comes with an expense ratio of 0.68%. Because of the S&P 500’s rise, SPYI has outperformed JEPI, with the latter remaining flat. SPYI’s tech focus—34.32%—suggests potential for even greater growth if technology continues to thrive, while JEPI’s tech exposure is more limited at 18.74%. That said, a downturn in tech could hit SPYI harder, usually dragging down JEPI too in such scenarios.

QQQI, in essence, mirrors SPYI’s structure but focuses on the Nasdaq 100. The expense ratio stands at 0.68%, similar to SPYI, but with higher yields given the more aggressive nature of the Nasdaq compared to the S&P 500.

If you’re optimistic about the technology sector sustaining its momentum, investing in QQQI might yield better returns than other choices on the market right now. With a yield of 13.69% due to pricier Nasdaq options, it could offer 2% to 3% more than SPYI and potentially 5% to 6% more than JEPI. However, keep in mind that tech-related declines can disproportionately affect QQQI’s performance, so this decision hinges on your market outlook.

Then there’s the Round Hill S&P 500 Target 20 Managed Distribution ETF (XPAY), boasting a 21.2% dividend yield, making it quite appealing for income-seeking investors. While capital gains may be moderate, the lure of such high monthly yields is hard to turn down. For those who grasp return on capital (ROC), the mechanics might be favorable since ROC is typically not taxed in the year it’s earned. Yet, one should be comfortable navigating derivatives and an actively managed dividend scheme to consider this option.

Honestly, I don’t see XPAY as a long-term hold; it seems more suited for those seeking immediate cash flow rather than total returns over time. Oh, and the expense ratio? It’s 0.49%.

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