How I Built a $100K Income Portfolio Using Covered Call ETFs

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A couple of years ago, I started looking for ways to earn more regular income from my investments. I didn’t want to rely only on market growth or try to time trades—I wanted something that paid me every month, like a paycheck. That’s when I started learning about covered call ETFs, and honestly, they’ve changed the way I invest.

If you're new to the idea, covered call ETFs are funds that buy dividend-paying stocks and then sell options (called “covered calls”) on them to earn extra income. This creates more cash flow, which is exactly what I was after.

I found a helpful list of some of the highest-yielding covered call ETFs here: https://dividendstacker.com/high-yield-covered-call-etfs. It gave me a good starting point. I started small with just a few ETFs, including those that focused on large U.S. companies and some that tracked the Nasdaq. I liked that many of them paid monthly dividends, making it easier to track my income over time.

As I reinvested dividends and added new money regularly, the income began to grow. I didn’t do anything fancy—just kept putting money in and paid attention to the distributions and fees. I never expected the ride to be smooth all the time. Sometimes the share prices went down, but the regular income kept coming in.

After about three years of consistently investing and reinvesting dividends, I hit the $100K portfolio mark with monthly income between $600 and $900, depending on the market. For me, that’s a game changer. It helps me cover bills, save, and gives me a sense of financial security that I didn’t have before.

Here’s my advice if you’re thinking of trying this: do your research, take it slow, and keep an eye on ETF fees and payout history. Covered call ETFs won’t make you rich overnight, and they do have trade-offs—like limited upside in fast-rising markets. But if you’re looking for regular income and a portfolio that works for you, they’re worth considering.

I’m still learning, of course, but building this portfolio has been one of the smartest financial choices I’ve made. It’s nice to feel like your money is working for you instead of the other way around.