Need Income? These 3 Dividend ETFs Pay You 52 Times Per Year

Most dividend exchange-traded funds pay out every quarter. For many retirees, this does not align with how they spend money or budget, so it’s worth looking into weekly ETFs like Roundhill Magnificent Seven Covered Call ETF (BATS:MAGY), YieldMax Magnificent 7 Fund of Option Income ETFs (NYSEARCA:YMAG), and Nicholas Crypto Income ETF (NYSEARCA:BLOX).

Weekly dividend ETFs are in very few people’s bucket lists. They’re a rare type of ETF, but they’ve done outstandingly well in the current environment. If you want more frequent income and are willing to add more sauce to your existing strategy, they’re worth looking into as satellite holdings.

The Roundhill Magnificent Seven Covered Call ETF is a covered call ETF that focuses on the “Magnificent Seven” tech stocks. These are: Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT), Meta (NASDAQ:META), Nvidia (NASDAQ:NVDA), Tesla (NASDAQ:TSLA), and Amazon (NASDAQ:AMZN).

The ETF buys shares of the Roundhill Magnificent Seven ETF (BATS:MAGS) while simultaneously selling out-of-the-money call options that use MAGS as the reference asset. The fund sells weekly call options, with strikes reset every Friday to remain responsive to market volatility.

The outcome of this strategy is that you’re monetizing the volatility through options while getting some exposure. At the same time, you’re forfeiting much of the upside while remaining exposed to the downside risk.

This is mainly because most of these weekly ETFs declined by 20-30% during the spring selloff this year.

You’ll only stay in the green if 1. the market keeps gaining, or 2. the market never declines to a point where the yield can’t offset those losses.

The MAGY ETF gets you a dividend yield of 33.4% and carries an expense ratio of 0.99%, or $99 per $10,000.

YieldMax Magnificent 7 Fund of Option Income ETFs is an actively managed ETF that also targets the Magnificent 7 tech stocks. It is a “fund of funds,” with the difference being that YMAG invests in seven separate YieldMax ETFs, where each underlying ETF uses synthetic covered call and synthetic covered call spread strategies on individual Magnificent 7 stocks.

Naturally, YMAG is more aggressive of the two. It is more volatile, and the yield can swing wildly. The downside risk is also greater, since the structure has more layers of risk and complexity. MAGY’s reference ETF owns the Magnificent 7 directly, whereas the ETFs involved with YMAG use various derivatives. So you’re essentially buying an ETF that is using options to derive income from ETFs that themselves are options-heavy.

YMAG gets you a higher yield of around 45.8% and has an expense ratio of 1.12%, or $112 per $10,000. That fat yield is worth the risk for many.

Nicholas Crypto Income ETF is quite unique and niche, but it has performed very well and is up 30.7% year-to-date while giving you a fat weekly yield.

The ETF uses a three-sleeved strategy. The first component is an equity portfolio that invests in publicly traded companies involved in various segments of the crypto economy, including crypto mining operations, trading platforms like Coinbase and Robinhood, blockchain technology providers, financial services firms, and companies holding considerable crypto assets on their balance sheets.

The second component is a crypto portfolio that provides exposure to Bitcoin and Ethereum through select U.S.-listed ETFs and exchange-traded products.

Then, the third and distinguishing component is an options overlay that gets you the weekly income. The fund sells put spreads on the crypto sleeve and selectively writes covered calls or put spreads on the equity holdings. And while many covered call strategies that almost totally cap upside potential, BLOX’s strategy lets you capture much more of that upside.

It comes with a dividend yield of 36.84%. The expense ratio is 1.03%, or $103 per $10,000.