Bankrate’s recent survey on Purchase Loan Tracking reveals that as of mid-2026, the average mortgage payment in the U.S. stands around $2,100 monthly. Interestingly, three ETFs, focused on monthly salary income, can generate sufficient cash flow—typically in the low to mid-six digits—to cover these payments based on current distribution rates. These funds are the NEOS S&P 500 High Income ETF (CBOE:SPYI), Goldman Sachs NASDAQ-100 Premium Income ETF (NASDAQ:GPIQ), and Virtus InfraCap U.S. Preferred Stock ETF (NYSEARCA:PFFA).
Each of these ETFs taps into distinct market segments: the S&P 500 through covered call income, similar approaches on the Nasdaq 100, and a leveraged collection of U.S. preferred stocks. Although they all offer monthly payments and boast attractive yields, the makeup of each portfolio significantly influences how much capital an investor needs and the associated price risks of the income.
SPYI: S&P 500 Options Premium
The NEOS Fund comprises a complete set of S&P 500 stocks paired with a data-driven SPX Index options strategy. Unlike traditional dividends derived from stock, this fund’s returns lean heavily on options premiums, leading to a dividend rate that greatly surpasses that of the index. The fund manages around $6.9 billion in net assets with a net expense ratio of 0.68%.
Currently, SPYI shares are priced at $54, with the latest monthly distribution recorded at $0.53, which translates to an annual dividend of $6.36 per share and a distribution rate of close to 11.7%. To cover that $2,100 monthly mortgage payment, you would need to invest roughly $218,000 into the fund.
Its stock portfolio reflects the S&P 500, meaning top weights are allocated to the same major companies that dominate the index—think NVIDIA, Apple, and Microsoft, which collectively represent about 20% of the assets. Investors encounter the downside risk typical of large-cap stocks while sacrificing any upside that might exceed the fund’s strike price. Notably, tax treatment of SPX options for 1,256 contracts offers some offsets in taxable accounts.
Trade-off: In a straightforward bull market, SPYI tends to lag behind the S&P 500 in total return due to the capped upside resulting from the call overlay. However, the fund has recorded a 19% return over the past year, along with monthly payouts, which is impressive for most income-generating products.
GPIQ: Nasdaq-100 with Premium Overlay
Goldman Sachs takes a similar approach with GPIQ, which invests in Nasdaq 100 stocks and employs call options on those stocks to generate income monthly. This fund uses comparable methods for generating premiums and directly competes with JEPQ, which is larger and more recognized in this space.
Currently trading around $57, GPIQ provides a distribution ratio of nearly 10.2%. You’d need around $251,000 to cover that $2,100 expense. Most recent distributions were $0.48615, with a total trailing 12-month payout of $5.66 and a forward yield of $5.83 per share.
GPIQ experiences greater price and distribution volatility compared to SPYI, given its tech-heavy focus. Monthly payments in 2026 have varied between $0.43 and $0.52, while SPYI’s range has been tighter. Investors are willing to accept higher income in exchange for a notably higher stock price, which led to a total share price increase of 25% over the last year.
Trade-off: GPIQ’s volatility swings both ways. With leading tech stocks, there’s potential for substantial NAV growth alongside income. However, if the tech sector experiences a downturn, the covered calls could provide less protection compared to broader market funds.
Virtus InfraCap’s preferred stock fund stands out as an outlier in this discussion. It doesn’t utilize options but instead actively manages a portfolio of U.S. preferred securities, leveraging about 20% to 30%. This fund is overseen by Jay Hatfield’s Infrastructure Capital Advisors.
PFFA is currently priced at approximately $21 per share, consistently issuing monthly payments of $0.1725 since early 2026. This annualizes to $2.07, resulting in a distribution rate close to 9.9%. To achieve an income of $2,100 per month, you’d need about $258,000 invested.
Interestingly, the monthly payment has seen an increase each year since 2022, a shift from $0.1625 to $0.1725, which is somewhat rare for an income-focused vehicle. The fund holds over 200 preferred positions, primarily in finance, REITs, and energy infrastructure, with significant holdings like Flagstar, First Citizens, Energy Transfer, KKR, and Apollo Global each making up around 2% to 2.5% of the assets.
Trade-off: Leverage plays a critical role here. In times of rising interest rates or credit stress, PFFA’s NAV may drop quicker than non-leveraged preferred ETFs. Conversely, during stable or declining interest rates, that same leverage boosts income and price recovery, resulting in a total annual price return of about 7% alongside dividends.
Choose from 3
For those seeking equity exposure with the most stable distribution profile, SPYI is the go-to choice. It boasts the broadest capital base, the narrowest monthly payout variability, and the largest asset pool among the trio, leading to more favorable bid-ask spreads and smooth execution of larger trades.
Investors who are okay with more distribution ups and downs and who want technology-driven NAV growth will likely gravitate towards GPIQ. It pairs well with SPYI, serving more as a growth-oriented second option rather than as a standalone income source.
PFFA, however, caters to a different need altogether, focusing on leveraged preferred stock income. It’s best suited for investors who already have equity exposure and are looking to diversify their income without raising their correlation to the S&P 500. Its behavior resembles that of a leveraged bond as much as a covered call fund.
None of these ETFs can fully substitute for a salary at a moderate investment size. To completely cover the current median mortgage payment, it takes about $250,000 for each ETF. Those with smaller investments could use these funds to alleviate some payment pressures without needing to liquidate long-term assets.
