My 37-ETF portfolio paid me $4,167.34 in April. Here's exactly how.

Last month, my 37-ETF income portfolio paid me $4,167.34. I didn't sell a single share to get that money. I didn't do any trading. I didn't time the market or watch tickers all day. I just held my positions, and the income hit my brokerage account automatically — like clockwork. Every. Single. Month.

$4,167.34 in April 2026 alone. Annualized, that's just under $50,000 a year in passive distributions. And I built this entire portfolio in under a year.

I'm not telling you this to brag. I'm telling you this because it's exactly why I started The Yield Letter. Most income investing content is theoretical. What you almost never find is someone willing to open their actual portfolio — all 37 positions — and show you exactly what's working, what's not, and why. That's what this newsletter is.

Welcome to Issue #1. Let's get into it.

Here's what my 37-ETF portfolio paid me in April 2026. I'm featuring my top 3 holdings by cost basis — where I have the most capital invested. These aren't necessarily my highest yielders percentage-wise, but they represent the core of my income engine.

My top 3 holdings by cost basis — JEPQ, JEPI, and QQQI — generated a combined $438.56 in April alone. Here's the exact breakdown:

Distribution per share calculated from April 2026 actual distributions received. Yields are approximate trailing rates and vary monthly.

The remaining $3,728.78 came from my other 34 ETF positions — a deliberately diversified mix of covered call strategies, high-yield income funds, and dividend-focused ETFs. I'll be featuring different positions in future issues, giving you a complete picture of the full portfolio over time.

If you're new to covered call ETFs, here's the plain-English version of how they work — and why they generate so much more income than traditional dividend stocks.

A regular ETF simply holds stocks. A covered call ETF holds stocks AND simultaneously sells call options on those same stocks. Selling those options generates a premium — cash — that gets distributed to shareholders as monthly income.

Think of it this way: you own a house and you rent it out. The rent is your covered call premium. You still own the house — you just collect income from it while you hold it.

The tradeoff is real and worth understanding: by selling call options you cap your upside if the market rockets significantly higher. But for investors focused on monthly income rather than maximum capital appreciation — that's often a perfectly acceptable trade.

I built my 37-ETF portfolio specifically around this philosophy. I'm not trying to beat the market. I'm trying to generate a reliable, growing monthly income stream from my invested capital — without selling shares, without timing markets, and without watching tickers all day.

The core idea: you own the asset, you earn the premium, you keep the shares. The option income is your monthly paycheck.

Here's why I hold each of these three ETFs and what I look for when evaluating them every month.

JEPQ is my largest holding by cost basis and for good reason. With over $37 billion in assets under management it is one of the most established covered call ETFs in the market. That size matters — it means deep liquidity, tight bid-ask spreads, and the institutional backing of JP Morgan's asset management division.

JEPQ focuses specifically on the Nasdaq-100, using equity-linked notes and call option strategies to generate its monthly distributions. The Nasdaq-100 exposure means you get the growth characteristics of major technology companies — Apple, Microsoft, Nvidia, Amazon — while the covered call overlay converts some of that growth potential into immediate monthly income.

The monthly distribution yield of 10–11% is what drew me to JEPQ initially. In April 2026 my 300 shares generated $167.58 in distributions — $0.5586 per share. That's money in my account every single month without selling a position.

The expense ratio is competitive for what you get, and the fund's liquidity makes it easy to add to or trim positions without meaningful market impact. For the core of an income portfolio JEPQ earns its place.

If JEPQ is the growth engine of my portfolio, JEPI is the stabilizer. Where JEPQ focuses on the Nasdaq-100, JEPI tracks the S&P 500 — giving you broad exposure to the 500 largest US companies while generating monthly income through a similar equity-linked note and options premium strategy.

JEPI launched in 2020 and has built one of the strongest track records of any covered call ETF. It generates income through two sources: the dividends from its underlying S&P 500 holdings and the premiums from selling call options. That dual income stream makes JEPI's distributions slightly more stable than pure options-premium funds.

The yield of approximately 8% is lower than JEPQ or QQQI — but that's by design. JEPI sacrifices some yield for more stability and lower volatility. In a portfolio of 37 ETFs I want some positions that anchor the income floor even when markets are turbulent.

In April 2026 my 300 JEPI shares paid $126.15 — $0.4205 per share. Reliable, consistent, and backed by JP Morgan's institutional infrastructure. JEPI is the ETF I'd recommend to anyone just starting an income portfolio.

QQQI is the highest yielder of my three featured positions and the one that requires the most monitoring. Managed by NEOS Investments, QQQI generates income by investing in Nasdaq-100 companies and implementing a call option overlay strategy similar to JEPQ — but with a more aggressive income-generation approach that pushes the distribution rate to approximately 14%.

With over $10 billion in assets QQQI has grown rapidly since its launch — a sign that income investors are finding real value in its approach. The fund is highly liquid and the NEOS team has demonstrated strong execution on its options strategy.

What I particularly appreciate about QQQI is its tax efficiency. NEOS structures its options strategy to generate return of capital distributions in certain tax environments — which can be advantageous for investors holding in taxable accounts. Always consult your tax advisor on this point as individual situations vary.

In April 2026 my 230 QQQI shares generated $144.83 — $0.6297 per share. The higher yield comes with higher distribution variability month to month — something I watch closely. But as part of a diversified 37-ETF portfolio it adds meaningful income without overconcentrating in any single strategy.

Volatility and option premiums. Covered call ETF distributions move with market volatility. When the VIX rises above 20, option premiums increase — which means higher distributions for funds like JEPQ, JEPI, and QQQI. I watch the VIX closely as a leading indicator of what next month's distributions might look like.

QQQI distribution consistency. As a relatively newer fund QQQI has less history than JEPI. I track its month-over-month distribution carefully to confirm the 14% yield is sustainable rather than a launch-period anomaly. April's numbers were encouraging.

Tax treatment of distributions. Covered call ETF distributions are often taxed as ordinary income rather than qualified dividends — an important distinction at tax time. I hold a portion of my positions inside a Roth IRA specifically to shelter this income from annual taxation. If you're building an income portfolio, account placement matters as much as ETF selection.

Portfolio diversification across 37 positions. One question I get often is: why 37 ETFs? The answer is deliberate diversification across income strategies — covered calls on different indexes, different sectors, and other high yield ETFs. No single fund failure can meaningfully damage my total income stream. I'll be breaking down the full allocation strategy in a future issue.

This is the question I asked myself before I started. The honest answer is no — and the data backs it up.

JEPI launched in 2020. JEPQ launched in 2022. QQQI launched in 2024. The covered call ETF universe we have access to today simply didn't exist five years ago in its current form. We are still in the early innings of retail investors discovering and deploying these strategies.

I started building my portfolio less than a year ago with zero experience in covered call ETFs. Twelve months later it generates over $4,000 a month in distributions across 37 positions. The compounding effect of reinvesting distributions while adding new capital creates momentum that accelerates over time.

The best time to start was a year ago. The second best time is today. Every month you wait is distributions you'll never receive.

Next week I'm going deep on JEPQ — the ETF that represents my largest capital commitment. I'll cover its full distribution history, how the equity-linked note structure actually works under the hood, the real risks I monitor, and exactly why I chose it as the anchor of my income portfolio.

If you found this issue valuable, forward it to one investor friend. That's the only way The Yield Letter grows — one real recommendation at a time.

Reply to this email with your biggest question about income investing. I read every reply and answer one per issue.

Until next week — keep the income flowing.

— Rose Bennett Founder & Editor, The Yield Letter theyieldletter.com · @TheYieldLetter

DISCLAIMER: This newsletter is for informational and educational purposes only. Nothing in The Yield Letter constitutes financial advice. Rose Bennett is not a registered financial advisor. All figures reflect a personal portfolio and past performance does not guarantee future results. Covered call ETF distributions vary month to month and are not guaranteed. Always conduct your own research and consult a qualified financial advisor before making investment decisions. Tax treatment of ETF distributions varies by individual circumstances — consult your tax advisor.

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