Three High-Yielding ETFs That Will Help Protect Your Portfolio
In uncertain markets, few things provide more comfort than a steady stream of income.
And while volatility can send individual stocks swinging wildly, high-yielding exchange-traded funds (ETFs) can offer investors a layer of protection — and, in many cases, stronger income than traditional dividend stocks.
That’s because many of these ETFs use covered call strategies — selling options on their holdings to generate consistent income — or invest in high-grade bonds that provide predictable payouts even when the broader market weakens.
If you’re looking to add a layer of stability and yield to your portfolio heading into 2025, here are three high-yield ETFs worth serious consideration.
ETF: Roundhill Magnificent Seven Covered Call ETF (SYM: MAGY)The Roundhill Magnificent Seven Covered Call ETF (SYM: MAGY) offers exposure to the biggest names in technology — and a massive 33.4% distribution rate — by using a covered call strategy on the iconic “Magnificent Seven” stocks: Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. With an expense ratio of 0.99%, MAGY may not be the cheapest ETF on the market, but the yield more than compensates for the cost. Its strategy is simple yet powerful: it owns shares of the Magnificent Seven through the Roundhill Magnificent 7 ETF (SYM: MAGS), and then sells call options on those holdings to generate consistent weekly income. In short, it trades volatility for cash flow. The result? Regular, sizable distributions.
That’s three consecutive weeks of strong income — a rarity in today’s ETF market. MAGY’s underlying holdings are heavily concentrated in the tech giants that dominate the AI-driven economy:
By combining these mega-cap innovators with a covered call strategy, MAGY allows investors to benefit from both potential stock appreciation and high, consistent cash flow. It’s an ideal choice for investors who want exposure to the world’s most powerful companies but prefer a steady paycheck over price speculation. |
Altimetry
Buy this stock before Optimus goes live
You may have heard that Tesla is planning to launch a brand new product called Optimus.
Elon Musk called it mind blowing and something special.
He's already moved $1bn into Tesla to take advantage, becoming the first person in history to be worth more than half a trillion dollars just two weeks later.
But almost no one I speak to realizes that you're running out of time to capitalize on it too.
ETF: iShares Investment Grade Corporate Bond ETF (SYM: LQDW)If you’re looking for stability and consistent monthly income, the iShares Investment Grade Corporate Bond ETF (SYM: LQDW) is a strong candidate. With an expense ratio of just 0.34% and a 4.16% yield, LQDW combines the stability of high-quality corporate bonds with the income-boosting potential of a covered call strategy. Specifically, it sells monthly call options on the iShares iBoxx $ Investment Grade Corporate Bond ETF (SYM: LQD) — one of the largest and most widely followed bond ETFs in the world. This structure allows LQDW to generate additional income from option premiums, on top of the regular bond interest payments. The result is more consistent cash flow and a lower sensitivity to interest rate swings. Recent payouts illustrate that stability:
In both cases, investors received reliable monthly income while maintaining exposure to high-quality bonds issued by some of the most creditworthy corporations in the world. The bonds inside the LQD (and therefore LQDW) portfolio carry ratings between A- and BBB, representing strong credit quality. They come from a broad mix of sectors, including:
For conservative investors who value predictable returns and want to reduce equity market exposure, LQDW is a compelling choice. It offers a way to collect income from investment-grade bonds while boosting yield through strategic option writing — a valuable tool in a world of fluctuating interest rates. |
Altimetry
Buy this stock before Optimus goes live
You may have heard that Tesla is planning to launch a brand new product called Optimus.
Elon Musk called it mind blowing and something special.
He's already moved $1bn into Tesla to take advantage, becoming the first person in history to be worth more than half a trillion dollars just two weeks later.
But almost no one I speak to realizes that you're running out of time to capitalize on it too.
ETF: KraneShares KWEB Covered Call Strategy ETF (SYM: KLIP)For investors seeking international diversification — particularly exposure to China’s rapidly evolving tech sector — the KraneShares KWEB Covered Call Strategy ETF (SYM: KLIP) stands out. With an expense ratio of 0.93%, KLIP employs a covered call strategy on the KraneShares CSI China Internet ETF (SYM: KWEB). This allows investors to generate steady options income from some of China’s most innovative technology, e-commerce, and social media companies. KLIP is designed to complement the KWEB ETF, which holds leading names in Chinese internet and e-commerce such as Alibaba, JD.com, Tencent, and Baidu. By writing call options on these holdings, KLIP turns market volatility into a source of monthly cash flow. The fund has been impressively consistent with its payouts:
That steady rhythm of payments makes KLIP an attractive tool for income investors who want exposure to China’s internet growth story without assuming excessive volatility. In addition, the option premiums earned through its covered call strategy help offset losses during market downturns — effectively cushioning the impact of price declines or flat performance periods. In short, KLIP offers a way to tap into one of the world’s fastest-growing digital markets while maintaining a defensive, income-focused profile. |
Found this helpful? Share it with others.
Written by Ian Cooper