Top 10 Dividend and Distribution-Paying OBI-ETFs
The best OBI-ETFs for 2025 providing strong dividends and distributions
Quick Definition: Options-Based Income ETFs (OBI-ETFs) are exchange-traded funds that use options strategies, such as covered calls, to generate high dividend and distribution yields from underlying securities.
⚠️ Critical Warning for Retail Investors
These assets are highly specialized and widely misunderstood by average self-directed investors. The distribution yields appear outrageous because they often are - but not in the way most people think.
Without a deep understanding of Net Asset Value (NAV) erosion and Return of Capital (ROC), the average retail investor should seriously consider staying away from these types of assets, particularly the extreme high-yielders (50%+ annual distributions).
Personal disclosure: I use options-based ETFs personally, but on a very limited basis - typically 10-20% of my income portfolio at most. The returns look too good to be true because they are. What appears as "income" is often your own capital being returned to you while the underlying asset value deteriorates.
If these types of assets are used incorrectly - or even worse, as standalone investments or a majority portfolio allocation - they could be absolutely devastating to a novice investor's portfolio. You could receive $20,000 in distributions on a $100,000 investment while watching your principal shrink to $75,000 or less. That's not income; that's liquidation with extra steps.
Please read the What is an Options Based Income ETF? article to get a better understanding of how these assets work.
The top 10 Options-Based Income ETFs (OBI-ETFs) for 2025 are selected for their high yields, often paid weekly or monthly, and their use of options strategies like covered calls to generate income. These ETFs cater to income-focused investors seeking enhanced cash flows, but they carry risks such as capped upside potential, higher expense ratios, and potential return of capital in distributions.
| # | Ticker | Name | Yield (%) |
|---|---|---|---|
| 1 | MSTW | Roundhill MSTR (MicroStrategy) WeeklyPay ETF | 115.36% |
| 2 | GDXY | YieldMax Gold Miners Option Income Strategy ETF | 92.42% |
| 3 | GDXW | Roundhill Gold Miners WeeklyPay ETF | 91.06% |
| 4 | COIW | Roundhill COIN WeeklyPay ETF | 77.06% |
| 5 | BITO | Bitcoin Strategy ETF | 76.86% |
| 6 | ULTY | YieldMax Ultra Option Income Strategy ETF | 72.53% |
| 7 | AMDW | Roundhill AMD (Advanced Micro Devices) WeeklyPay ETF | 69.35% |
| 8 | SLTY | YieldMax Ultra Short Option Income Strategy ETF | 60.23% |
| 9 | LFGY | YieldMax Crypto Industry and Tech Portfolio Option Income ETF | 59.07% |
| 10 | AVGW | Roundhill AVGO WeeklyPay (Broadcom) ETF | 58.70% |
Yields are subject to change and not guaranteed.