-
Option-overlay ETFs are reshaping income-focused compounding, turning market volatility into double-digit cash flow that can be reinvested for the long term.
-
SPYI and QQQI offer high-yield exposure to the S&P 500 and Nasdaq 100, combining core index participation with tax-aware or aggressive income strategies.
-
JEPQ provides an institutional-grade alternative, pairing active management with a 10%+ yield for investors seeking scalable, durable income in tech-heavy markets.
-
Interested in JPMorgan Nasdaq Equity Premium Income ETF? Here are five stocks we like better.
For investors focused on building long-term, compound returns, the strategy has shifted in recent years. Whilst buying a high-quality S&P 500 ETF still remains a Buffett-approved approach, several new options have recently become available for compound-focused investors.
Investors can now capture high-yield income through sophisticated option-overlay ETFs. These funds keep their usual index stock exposure but sell options (often call options) on that index to collect premium income, which is then paid out as frequent distributions. These distributions often far exceed traditional dividends, turning the volatility of the S&P 500 and the Nasdaq-100 into a somewhat predictable cash flow engine. By reinvesting these yields, an investor can accelerate their share count growth regardless of whether the broader market is moving sideways or upward.
→ New Horizon Aircraft: A Speculative Microcap With Take-Off Potential
Let’s delve into three popular ETFs that aim to deliver aggressive returns to their shareholders.
The NEOS S&P 500 High Income ETF (BATS: SPYI) is especially relevant for those seeking a balance between the stability of the S&P 500 and high-octane income.
→ MarketBeat Week in Review – 01/12 – 01/16
As of mid-January 2026, SPYI is trading near $53 with an exceptional dividend yield of 11.61%. The fund manages $7.1 billion in assets, and distinguishes itself through a rules-based approach that uses SPX Index options.
This strategy is particularly insightful for tax-conscious investors because index options are classified under Section 1256 contracts, which typically qualify for a 60/40 blend of long-term and short-term capital gains treatment.
→ Pentagon Deal Sends AST SpaceMobile Soaring—Is This the Next Leg Up?
This tax efficiency makes SPYI a more durable choice for non-retirement accounts than standard covered-call funds, which may generate higher tax liabilities.
And no surprises in terms of its top holdings, which closely mirror the S&P 500. Mega-cap technology giants like NVIDIA, Apple, Microsoft, and Alphabet account for almost 20% of its holdings.
