3 Canadian ETFs That Deliver 10% Yield and Monthly Income From Tech Stocks

How much premium (income) you can earn from a buy-write strategy—selling covered calls against your existing stock positions—depends on several factors.

One key determinant is how close you write the strike price to the current market price of the stock. Writing “at-the-money” calls (where the strike price equals the current stock price) will generate the highest premiums because these options have the most value to buyers.

However, this also means capping your upside—if the stock rises above the strike price, your gains are limited to the premium collected.

Another crucial factor is the volatility of the underlying asset. Simply put, the more volatile the stock or index, the higher the option premiums, as buyers are willing to pay more to hedge against larger price swings.

This is why U.S. tech stocks, known for their high volatility, are often a go-to for covered call strategies. Here are three Canadian-listed ETFs to consider for high monthly income from the tech sector.

1. Evolve NASDAQ Technology Enhanced Yield Index Fund (QQQY)

First up is the Evolve NASDAQ Technology Enhanced Yield Index Fund (TSX:), which boasts a 14.10% 12-month trailing yield as of December 31, 2024.

Here’s how it works: QQQY takes the Index and removes all the non-tech sector stocks. What’s left are 45 holdings that track the Nasdaq-100 Technology Sector Adjusted Market-Cap Weighted Index.

The definition of a “tech stock” here follows the Industry Classification Benchmark (ICB), which is broader than the standard Global Industry Classification Standard (GICS). While GICS is used by most indexes like the , ICB includes additional tech-adjacent sectors, giving you a more expansive interpretation of “technology.”

This means you still get most of the Magnificent Seven—including Meta Platforms (NASDAQ:), Microsoft (NASDAQ:), NVIDIA (NASDAQ:), Apple (NASDAQ:), and Alphabet—but exclude Tesla (NASDAQ:) and Amazon (NASDAQ:). These two are classified as consumer discretionary stocks under ICB, despite their tech-heavy profiles.

While QQQY’s holdings follow an index, its covered call strategy is dynamic. Evolve has the discretion to write covered calls on up to 100% of the portfolio. In practice, the coverage ratio tends to be lower, with strikes typically written out of the money (OTM). This allows for some upside capture while still generating income.

Another important feature is that QQQY is currency hedged, meaning fluctuations between CAD and USD won’t impact your returns. While this means you won’t benefit from a rising USD, you’re also protected if the CAD strengthens.

2. Hamilton Technology YIELD MAXIMIZER ETF (QMAX)

If you’re looking for an actively managed alternative to QQQY, the Hamilton Technology YIELD MAXIMIZER ETF (TSX:) is worth considering (and is my personal favourite). As of January 20, it offers an attractive 11.05% distribution yield.

QMAX takes a different approach by holding a concentrated portfolio of 15 major tech stocks, including all of the Magnificent Seven. Unlike QQQY, this ETF includes Tesla and Amazon, providing full exposure to the largest names in the tech sector.

Hamilton’s covered call strategy also stands out. The ETF writes covered calls on up to 30% of its holdings, leaving the remaining 70% uncapped to capture more upside potential. However, the calls are written at the money to maximize premium income.

Another key distinction is that QMAX is not currency-hedged. This means returns are influenced by exchange rates. Given the USD’s sharp appreciation against the CAD in recent years, this has provided a meaningful tailwind to the ETF’s performance.

3. Harvest Tech Achievers Enhanced Income ETF (HTAE)

At the top of the risk-reward scale is the Harvest Tech Achievers Enhanced Income ETF (TSX:), which takes things a step further by applying 1.25x leverage to amplify both income and returns. It is currently paying a 11.06% distribution yield.

HTAE derives its portfolio from the Harvest Tech Achievers Growth & Income ETF (TSX:), an actively managed fund with 20 holdings. These include several Magnificent Seven members like Alphabet (NASDAQ:), Meta Platforms, Microsoft, Apple, and NVIDIA.

HTA employs a flexible covered call strategy, allowing it to write options on up to 33% of the portfolio. Unlike Hamilton’s QMAX, HTA isn’t restricted to at-the-money strikes—it can adjust option levels based on short-term momentum, which provides more dynamic income generation opportunities.

While HTA comes in unhedged, CAD-hedged, and USD-hedged variants, HTAE only holds the hedged version as its underlying ETF, mitigating the impact of CAD/USD fluctuations.

The leverage is straightforward: HTAE borrows funds—similar to a margin loan—to invest 125% of its net assets into HTA. This leverage amplifies both upside potential and downside risk, making HTAE most suitable for investors with high risk tolerance who are comfortable with more pronounced price swings.