Investors seeking to diversify or enhance income potential have increasingly turned to options-based ETFs, which have proliferated over the past two years as market conditions favored their growth. 

Rising interest rates and bond market challenges have driven demand for strategies that generate income from option premiums, particularly in volatile markets. These ETFs span a wide range of asset classes—from equities and bonds to alternatives like bitcoin and gold—allowing investors to either augment returns on existing exposures or diversify income sources. 

By combining traditional asset exposure with systematic covered call writing, these funds provide double-digit distribution rates while optimizing after-tax returns. 

Finsum: For income-focused investors, especially those mindful of tax efficiency, options-based ETFs represent a compelling complement to more traditional income-generating assets.