Markets· August 16, 2026 at 06:40 p.m.
New ETFs Offer Fixed Income Payments from Large-Cap Portfolios
Key takeaways
- Three new ETFs offer monthly checks totaling 12% to 20% a year
- SPYT uses an S&P 500 index overlay to generate income
- BIGY sells calls on hand-selected large-cap stocks for higher premiums
A new category of exchange-traded funds (ETFs) has emerged, offering monthly checks totaling 12% to 20% a year on large-cap equity portfolios. Three ETFs in this category - Defiance S&P 500 Target 20 Income ETF (SPYT), Defiance Large Cap Target Income ETF (BIGY), and Pacer Metaurus US Large Cap Dividend Multiplier 400 ETF (QDPL) - aim to deliver this range using different strategies. The funds target a distribution level rather than a fixed yield, relying on a mix of underlying equity exposure, options premiums, dividend futures, and return of capital.
