3 Ways to Generate Monthly Income in Any Market - 8/10

ETF: Roundhill Magnificent Seven Covered Call ETF (SYM: MAGY)
Distribution Rate: 34.84% | Expense Ratio: 0.99%

If you’re a fan of the “Magnificent Seven” tech stocks—but don’t love their volatility—MAGY may be worth a serious look.

The Roundhill Magnificent Seven Covered Call ETF is a unique fund that leverages the power of Big Tech while providing substantial income via a covered call strategy. This strategy involves holding shares of the seven dominant tech names—Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla—and simultaneously selling call options on them.

The result? An ETF that generates strong options income, which it passes along to investors via weekly distributions.

Recently, MAGY paid a dividend of $0.381511 per share on July 14 to shareholders of record as of July 11. The week prior, it paid $0.3763 on July 7, showcasing a consistent and impressive payout schedule.

MAGY holds the Roundhill Magnificent 7 ETF (SYM: MAGS) as its core position. That fund has notable weightings in top tech names like Nvidia (15.48%), Alphabet (14.95%), and Amazon (14.73%), among others. MAGY then layers on a covered call strategy to produce an income stream, which is rare among tech-heavy ETFs.

It’s worth noting that this strategy works best in flat or modestly bullish markets where share prices don’t rise too quickly. If you're looking to collect sizable income while maintaining exposure to some of the most innovative companies on the planet, MAGY is a compelling option.

ETF: iShares Investment Grade Corporate Bond ETF with Covered Calls (SYM: LQDW)
Distribution Yield: 13.92% | Expense Ratio: 0.34%

For those who prefer the relative safety of bonds—but want more income than traditional yields currently offer—consider the iShares Investment Grade Corporate Bond ETF with Covered Calls (SYM: LQDW).

With a monthly dividend and a generous 13.92% distribution yield, LQDW uses a covered call overlay to squeeze more income out of the iShares iBoxx $ Investment Grade Corporate Bond ETF (SYM: LQD)—its primary holding.

The fund holds two main components:

1. 
   

   The LQD ETF, which consists of high-quality corporate bonds rated between A- and BBB.

   
   


2. 
   

   A series of call options written on LQD, designed to generate premium income that enhances yield.

   
   

LQDW gives investors exposure to a diversified pool of investment-grade bonds across sectors like banking, communications, consumer non-cyclical, and technology, while providing an income stream typically reserved for more aggressive assets.

The covered call strategy provides a natural hedge—if LQD trades sideways or dips slightly, the premiums collected from selling calls can help absorb losses. For conservative investors seeking income in a low-growth environment, LQDW checks a lot of boxes.

ETF: KraneShares KWEB Covered Call Strategy ETF (SYM: KLIP)
Distribution Rate: 23.3% | Expense Ratio: 0.93%

China’s economy may be in flux, but its digital sector continues to be a hotbed of innovation—and the KraneShares KWEB Covered Call Strategy ETF (SYM: KLIP) offers a way to capitalize on it while earning a hefty income stream.

KLIP utilizes a covered call strategy on the KraneShares CSI China Internet ETF (SYM: KWEB), which tracks a range of fast-growing Chinese e-commerce, social media, fintech, and online gaming companies.

The result is a distribution yield of 23.3% paid out monthly.

KLIP recently distributed $0.64 per share on June 30 to shareholders of record as of June 27. A month prior, it paid a similarly high $0.63 per share. These consistent distributions come from the premiums earned by selling call options on KWEB’s holdings.

What makes KLIP particularly interesting is that it provides exposure to high-growth names that could benefit from China's long-term digital transformation—while offering a buffer against short-term volatility. Option income earned through the strategy can help cushion the blow during pullbacks and flat periods.

If you're looking for international diversification, strong income, and tech exposure outside the U.S., KLIP is worth consideration.