If you’re tired of seeing your hard-earned money slowly erode in high-yield ETFs, this is for you. Today, we’re diving into six income ETFs that avoid NAV erosion—a hidden gem space many investors overlook. We’ll explore their dividend history, price performance, and why they might be perfect for your portfolio.
Why NAV Erosion Matters
NAV erosion happens when a fund pays out high dividends but sacrifices the value of your principal. Total return is key—if your fund keeps your NAV healthy while giving solid payouts, you’re in the sweet spot.
Take Neos IWMI vs Defiance IWMY as examples:
IWMI (Neos): Up 1.52% price return, 13.5% dividend yield, total return 17.4%
IWMY (Defiance): Down 33%, sky-high 55% yield—but total return only 10%
The lesson? Chasing ultra-high dividends can cost your principal. Pick ETFs that balance growth + income.
The 6 No-NAV-Erosion ETFs You Need to Know
1️⃣ OVF – Overlay Shares Foreign Equity ETF
Focus: Non-US emerging markets (Mexico, Brazil, etc.)
Strategy: Equity exposure + short-term put options for income
Dividend: 6.65%
Total Return (1-Year): 35%
Why it stands out: Consistent payouts, moderate yield, excellent growth
2️⃣ SLVO – UBS Silver Shares Covered Call ETN
Focus: Silver exposure + covered calls
Dividend: ~25%, monthly
Total Return (1-Year): 60%
Why it stands out: High income with commodity upside, though price swings with silver
3️⃣ TUGN – STF Tactical Growth & Income ETF
Focus: Tactical allocation between NASDAQ and fixed income
Dividend: 12% monthly
Total Return (1-Year): ~10%
Why it stands out: High income, active management, great for monthly payouts
4️⃣ USG – USCF Gold Strategy Plus Income Fund ETF
Focus: Gold exposure
Dividend: 23.8%
Total Return (1-Year): 57%
Why it stands out: Booming gold market means big payouts; quarterly distributions
5️⃣ TYLG – Global X Info Tech Covered Call & Growth ETF
Focus: NASDAQ tech stocks with 50% covered calls
Dividend: 8.26%
Total Return (1-Year): 11%
Why it stands out: Growth + income, perfect for tech bulls, monthly payouts
6️⃣ JPIE – JP Morgan Income ETF
Focus: Diversified credit portfolio (corporate bonds, MBS, securitized credit)
Dividend: 5.6%
Total Return (3-Year): 21.6%
Why it stands out: Safer income ETF, ideal for conservative investors
Key Takeaways
Balance yield and growth – don’t sacrifice NAV for a high payout.
Monthly payouts are fun, quarterly payouts are strong – pick what fits your lifestyle.
Diversify across sectors & assets – tech, gold, silver, foreign equities, and credit.
Always track total return, not just dividends.
💡 Pro Tip: Use free stock screeners like FinnViz to find ETFs that meet your yield + growth criteria. Look for >6% dividend yield and solid 3-year performance.
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#InvestSmart #NoNavErosion #IncomeETFs #DividendInvesting #moomoo
