3 High-Yield ETFs for $2,000 Monthly Income

Generating substantial monthly income from investments has traditionally required either massive capital or acceptance of minimal returns. As the source text highlights, even with $1 million invested, the standard 4-5% yield would provide only about $4,000 monthly—insufficient for many retirees without dipping into principal. This reality makes high-yield strategies increasingly attractive for investors seeking to maximize income from smaller portfolios. The emergence of sophisticated monthly dividend ETFs offers a potential solution, with three specific funds collectively providing a blended trailing 12-month dividend yield of 23.59%.

According to the analysis, a $100,000 investment equally allocated across these three ETFs would have generated $23,590 annually, or approximately $1,965 per month. The strategy becomes even more potent when investors skew their allocation toward the higher-yielding funds, potentially pushing monthly income above $3,000. However, the source material emphasizes that these high-yield ETFs should only constitute a partial allocation within a broader income portfolio due to their unique risk profiles and strategies that cap some upside potential in exchange for enhanced income generation.

The NEOS Nasdaq-100 High Income ETF (NASDAQ:QQQI) represents a modern approach to the traditional growth-versus-income dilemma. This fund provides exposure to the Nasdaq-100 while simultaneously writing call options on the underlying NDX Index. The strategy generates premium income through these options, though it comes with the caveat of capping some upside potential. With a dividend yield of 13.93%, QQQI offers substantially higher income than traditional tech ETFs while maintaining exposure to technology stocks that appear well-positioned for long-term AI-driven gains.

The fund’s option premium income is likely to remain robust due to increased options trading activity driven by online platforms that have attracted retail investors experimenting with derivatives. QQQI carries an expense ratio of 0.68%, or $68 per $10,000 invested, which is reasonable given the sophisticated strategy employed. For investors seeking tech exposure without sacrificing income, QQQI represents a balanced approach that delivers both growth potential and substantial monthly dividends.

The ProShares Russell 2000 High Income ETF (ITWO) implements a daily covered call strategy focused on small-cap stocks within the Russell 2000 Index. Unlike QQQI, ITWO uses swap agreements to replicate its buy-write strategy rather than directly writing call options. This approach has yielded a 14.08% dividend yield, slightly higher than QQQI’s, with a lower expense ratio of 0.55% ($55 per $10,000 invested). The Russell 2000 Index, comprising the smallest 2,000 stocks in the Russell Index, experienced significant volatility in early 2025 but has shown a V-shaped recovery since.

Interest rate cuts present a particularly positive catalyst for small-cap stocks, as demonstrated by the index’s 45% gain over four months following aggressive rate cuts in late 2020. This historical precedent suggests that ITWO could benefit significantly from current monetary policy trends. For investors believing in a small-cap resurgence, ITWO offers both exposure to this potential outperformance and substantial monthly income through its sophisticated options strategy.

The YieldMax Gold Miners Option Income Strategy ETF (GDXY) presents the most aggressive option in this trio, combining a massive 43.2% dividend yield with exceptional year-to-date performance of 61.44%. This actively managed fund generates income by selling call options on the VanEck Gold Miners ETF (GDX) while holding U.S. Treasury securities as collateral. Unlike the other two ETFs, GDXY does not directly invest in the underlying assets but instead writes options on GDX, providing indirect exposure to gold miners and the precious metal itself.

Gold’s recent surge above $3,700 per ounce, outperforming even many technology stocks, reflects strong investor interest driven by rapidly changing economic policies and central bank accumulation. GDXY’s strategy allows investors to capitalize on gold’s momentum while receiving extraordinary monthly income. However, this comes at a cost—the fund carries the highest expense ratio at 1.08% ($108 per $10,000) and represents the greatest risk profile among the three ETFs. For investors comfortable with elevated risk who want to bet on gold while receiving monthly payments, GDXY offers a unique combination of commodity exposure and income generation.

While these three ETFs offer compelling income potential, their implementation requires careful consideration within a broader portfolio context. The source material specifically recommends only partially allocating an income portfolio to these strategies due to their unique risk characteristics. All three funds utilize covered call or options strategies that generate premium income at the cost of capping upside potential during strong bull markets. This trade-off makes them particularly suitable for sideways or moderately rising markets but potentially suboptimal during explosive growth periods.

Investors should also consider the expense ratios, which range from 0.55% for ITWO to 1.08% for GDXY, as these costs directly impact net returns. The blended yield of 23.59% represents a historical figure that may not persist in different market conditions. As with any investment strategy, diversification remains crucial—these high-yield ETFs should complement rather than replace core portfolio holdings. For investors seeking to enhance monthly income without requiring multi-million dollar portfolios, these innovative ETFs provide sophisticated tools, but they work best as part of a carefully constructed, diversified investment approach.