The New Weekly Income ETFs You Haven't Heard of Yet

At a high level, the funds are straightforward:

EDGQ

• Tracks the NASDAQ 100

• Targets a 13% annual distribution rate

• Pays weekly

• Up roughly 11% since launch

EDGX

• Tracks the S&P 500

• Targets a 9% annual distribution rate

• Pays weekly

• Up roughly 6% since launch

Both funds have been remarkably close to achieving their stated income targets so far.

That's notable because many income funds either over-distribute or struggle to consistently meet their yield objectives.

Most traditional covered-call ETFs follow a simple formula: sell options against a fixed percentage of the portfolio regardless of market conditions.

EDGQ and EDGX take a more flexible approach.

Each week, portfolio managers evaluate:

• Market volatility

• Option premiums

• Interest rates

• Market conditions

They then determine how much of the portfolio should be covered in order to generate that week's target income.

Global X expects option coverage to average around 25% over time, although that number can move significantly higher or lower depending on market conditions.

The potential advantage is obvious:

If only 25% of the portfolio is covered, roughly 75% remains fully exposed to market upside.

That's a very different profile than funds that write calls on nearly all of their holdings.

One of the biggest surprises is the fee structure.

Both funds normally carry a 0.50% expense ratio.

However, Global X has waived management fees until at least March 2027.

For now, investors pay:

0.00%

That's unusual in the income ETF space.

For comparison:

• QDTE: 0.95%

• XDTE: 0.95%

• SPYI: 0.68%

• QQQI: 0.68%

A fee waiver alone isn't enough reason to invest, but it certainly lowers the barrier for investors interested in testing the strategy.

It's important to remember that we're only looking at about three months of data.

That's nowhere near enough to draw long-term conclusions.

Still, the early numbers deserve attention.

Total Return (Including Distributions)

Over the first three months:

• QQQ: +19.5%

• EDGQ: +16.6%

• QDTE: +14.3%

• SPY: +9.4%

• EDGX: +8.8%

• XDTE: +6.4%

• SPYI: +6.1%

• YSPY: +1.0%

EDGQ has been the second-best performer in the group, trailing only QQQ itself.

That's impressive for a fund paying weekly distributions.

Price Return Only

Looking strictly at share price appreciation:

• QQQ: +19.3%

• EDGQ: +13.1%

• SPY: +9.1%

• QDTE: +6.6%

• EDGX: +6.6%

• SPYI: +3.0%

• XDTE: +1.0%

• TQQY: -4.5%

• YSPY: -10.0%

The biggest takeaway is that EDGQ has preserved significantly more upside than many competing weekly-income funds.

The biggest issue isn't performance.

It's size.

Currently:

• EDGQ has roughly $4.2 million in assets

• EDGX has roughly $2.4 million in assets

Those numbers are tiny compared to competitors.

Smaller funds often come with wider bid-ask spreads, making them more expensive to trade.

Both funds currently show spreads around 0.45%.

For a long-term investor, that's manageable.

For active traders, it can become a meaningful drag on returns.

This is something I'll be monitoring closely over the next several months.

This is where things get interesting.

The yields are fairly similar:

• EDGQ targets 13%

• QQQI currently yields around 13-14%

• EDGX targets 9%

• SPYI generally yields around 9-12%

However, the strategies are very different.

SPYI and QQQI use Section 1256 contracts, which provide attractive tax treatment and have already proven themselves through various market environments.

EDGQ and EDGX rely on variable option coverage, which may allow for greater upside participation but hasn't yet been tested over a full market cycle.

The concept is promising.

The track record is still developing.

I'm interested, but I'm not buying yet.

The performance has been better than I expected. The variable coverage model appears to be working, and the zero-fee period makes these funds even more appealing.

But three months isn't enough data for me.

I want to see how they perform during a pullback. I want to see whether distributions remain consistent. And I want a better understanding of the long-term tax implications before comparing them directly to funds like SPYI, QQQI, or even the newer ROCY and ROCQ offerings.

For now, they're firmly on my watchlist.

The weekly-income ETF space is becoming increasingly competitive.

That's good news for investors.

EDGQ and EDGX bring something genuinely different to the table with their variable coverage approach, and the early results suggest the strategy may be helping preserve more upside than traditional covered-call funds.

Whether that advantage holds up over time remains to be seen.

For now, I think they're worth watching closely—but not necessarily worth rushing into.

Sometimes the best investment decision is simply gathering more data.