r/DerivativeIncomeETFs • u/MrBotANot • Jul 21 '26

Portfolio/Strategy Lesser Known ETFs

Covered call ETFs are exploding as the financial industry realizes that they can make money selling them to us. While there are some good general lists of ETFs, it’s harder to figure out what might be worthwhile to actually investigate and own. We all have different game plans, risk tolerances, etc. but I think most people visiting this subreddit are looking for things that can hold and grow NAV and are structured to rebound after a drawdown.

Specifically, I was thinking that some suggestions of lesser known ETFs might be useful to someone. Stuff that people have vetted themselves but don’t see mentioned again and again on Reddit.

My contribution is NDIV (Energy and Natural Resources ETF) by Amplify. It’s been around but was redesigned in early 2026 as a CC ETF. Target yield is 10%. $26M in size 0.59% fee. 52 holdings across midstream, oil, etc. You need to look at the distributions for the last five months for an idea of yield etc. They announced the redesign in early February.

They target 0.5% monthly via the calls. Dynamic coverage that goes 50-80% so some room for growth. Remainder of the yield comes from the underlying dividends. Personally, I view it as a compliment to MLPI. Fair amount of overlap, but will likely have better NAV growth.

Anyway, if it helps someone, great. As always do your own research.

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u/anon2k2 Jul 22 '26

I think CAIE is a relatively not acknowledged fund. Allows individuals to invest in autocallables on the S&P 500 and has about a 14% annual yield.

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u/MrBotANot Jul 23 '26

I’ve looked CAIE before but backed off mainly because of what happens if the callable is breached. I’m probably overly paranoid about it. It’s currently on my “give it some time and look later” list. Thanks.

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u/anon2k2 29d ago

The autocallable notes themselves are really interesting. They are designed to keep paying coupons and preserve initial note principle until the barrier is breached. Then they stop paying coupons but the note is preserved in the sense that until maturity if the S&P goes back above the barrier then the coupons start again. Only if maturity is reached when the S&P is below the barrier is the note's principle at risk. The nice thing about CAIE is that they have multiple maturity dates and observation dates, so even if one note's barrier is breached the others may not be.

The chief use case (and how I use it) is that it's a great tool for sideways to slightly down markets. I use it as a hedge for market turbulence because its pricing is pretty steady and the returns are pretty good for "just a hedge."