High Dividend Monthly ETFs: CONY, NVDY, TSLY Explained

If you're not satisfied with low interest rates and are looking for consistent monthly income, it's time to explore high-yield monthly dividend ETFs. CONY, NVDY, and TSLY offer attractive monthly payouts with potential annualized yields exceeding 10%. But beyond the impressive yields, it's essential to understand their structures and risks. In this guide, we’ll help you choose the right ETF based on your investment profile and stay ahead in this fast-moving market.

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The Covered Call Strategy: How These ETFs Generate High Dividends

The secret behind these ETFs lies in the covered call strategy. In simple terms, these ETFs hold shares of a particular stock while simultaneously selling call options on those shares. The option premiums collected from selling these calls are distributed to investors as monthly dividends. This allows investors to receive regular income even when the stock price moves sideways or slightly down. However, if the stock surges sharply, the upside potential is capped because of the sold call options. Therefore, covered call ETFs typically perform best in sideways or moderately volatile markets.

Introducing YieldMax ETFs: Understanding CONY, TSLY, and NVDY

The YieldMax ETF series applies the covered call strategy to individual stocks. For example, CONY is based on Coinbase, TSLY on Tesla, and NVDY on Nvidia. These ETFs either directly hold the underlying stock or replicate exposure through derivatives, while selling call options to generate income. Even if the underlying company doesn’t pay dividends, this structure allows for monthly payouts. But investors must be cautious: high yields often come with trade-offs like limited upside growth, potential capital erosion, and higher volatility.

Comparing CONY, TSLY, and NVDY

While all three ETFs use the same income-generating approach, the underlying assets greatly affect their risk and reward profiles:

• CONY: Based on Coinbase — Offers yields over 140% — Extremely high volatility — Significant long-term risk tied to the crypto market.
• TSLY: Based on Tesla — Yields around 60% — Highly volatile due to Tesla’s unpredictable stock movements.
• NVDY: Based on Nvidia — Yields roughly 30–40% — AI sector exposure provides more stability — Lower volatility compared to the others.

Although CONY’s yield looks most attractive on paper, its reliance on the highly unpredictable crypto market adds considerable risk. TSLY reflects Tesla’s notorious price swings, making it volatile as well. NVDY, on the other hand, benefits from Nvidia’s leading role in the AI boom and has shown relatively steadier performance.

Who Should Consider These ETFs?

These ETFs may be suitable for investors who:

• ✔ Seek consistent monthly cash flow and are comfortable with higher risk levels.
• ✔ Understand the mechanics of covered call strategies and accept their limitations.
• ✔ Are looking for short-term income rather than long-term capital growth.

However, they may not be appropriate for:

• ❌ Long-term, compound growth investors focused on capital appreciation.
• ❌ Those who are highly sensitive to principal loss or market volatility.
• ❌ Retirement or conservative portfolios needing stable, low-risk income.

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Conclusion: Covered Call ETFs Require a Clear Understanding

CONY, TSLY, and NVDY are unique income-generating ETFs that use covered call options to deliver high monthly dividends. While they offer attractive income opportunities, they carry significant risks — especially in highly volatile markets. Remember: part of your dividend may technically be a return of your own capital if prices decline. Always take time to fully understand how covered call strategies work before investing and ensure they align with your personal risk tolerance and financial goals.