INVESTING TOOL
Income-Enhanced ETF vs Underlying Simulator
RSPA and FYEE pay 7-9% yields by writing options on the same stocks RSP and FELC hold without an income overlay. This tool runs the full math: distribution yield, NAV drag, taxes, expense ratios, and shows which one actually leaves you with more after-tax wealth.
Not financial advice. Distribution yields and call-premium drag are based on recent historical behavior. Future results vary with market conditions, volatility, and fund manager decisions.
Read the full breakdown: RSPA vs RSP and FYEE vs FELC →
Pick a Pair
Invesco S&P 500 Equal Weight Income Advantage
Equal-weight S&P 500 + ELN income overlay. ~9% monthly yield. ER 0.29%.
Invesco S&P 500 Equal Weight ETF
Same equal-weight S&P 500 holdings, no options overlay. ~1.5% dividend yield. ER 0.20%.
Your Inputs
END NAV
CUMULATIVE INCOME (AFTER TAX)
TOTAL WEALTH
CAGR (TOTAL)
YR-1 MONTHLY INCOME
END NAV
CUMULATIVE DIVIDENDS (AFTER TAX)
TOTAL WEALTH
CAGR (TOTAL)
YR-1 MONTHLY DIV
BOTTOM LINE
Set your parameters to see the verdict.
Year-by-Year
| YR | RSPA NAV | RSPA INCOME | RSP NAV | RSP DIV |
|---|
How the math works
Income-enhanced ETFs like RSPA and FYEE write options (or hold equity-linked notes) against their underlying portfolio. The premiums fund the high distribution yield. The cost: the underlying portfolio can't fully participate in big up moves, because the options cap the upside.
We model this as a "call-premium drag" on total return: roughly 1.5% per year for RSPA and 1.0% for FYEE based on the call-writing intensity each fund uses. We also account for the higher expense ratio on the income version, and the fact that ELN and call-premium distributions are taxed at your full ordinary income rate. The pure-play ETF's dividends are taxed as qualified dividends at 15% for most filers.
Set the marginal tax rate to 0% to model the same comparison inside an IRA or Roth IRA, where neither the income distributions nor qualified dividends face current tax.