A Better Way To Own Kurv’s Income ETFs?

ver the last few years, Kurv has been very creative with new funds in the high-yield option strategy space. Several of the Kurv exchange-traded funds (ETFs) are in the recommended portfolios for our various newsletter services.

Kurv’s newest fund goes a bit old school, which, with its strategy, means all the way back to January 2024. The Kurv Equity Option Income ETF (KEO) is a fund of funds, in which the holdings are other Kurv ETFs from Kurv.

Kurv started with a handful of single-stock covered call ETFs; there are currently seven. KEO provides investment exposure to all of those funds, with a single ETF investment.

Here are the KEO portfolio ETFs, along with their current distribution yields. Of possible interest: Kurv is the first and so far only ETF company to offer a SpaceX (SPCX) single-stock covered call ETF.

Kurv actively manages KEO through how it weights each holding. Currently, NFLP and MSFY are the top positions, making up 19% each. The two Elon Musk funds, XSHP and TSLP, are the smallest holdings, at 9.75% and 8.27%, respectively.

KEO launched on August 4, so there is no track record. Kurv staggers the monthly dividends from the portfolio ETFs so that KEO will pay weekly.

For now, let’s look at a couple of comparable ETFs with fund-of-funds strategies.

The YieldMax Magnificent 7 Fund of Option Income ETF (YMAG) launched in January 2024. YMAG owns the YieldMax single-stock ETFs for the “Magnificent Seven” stocks—Microsoft (MSFT), Amazon (AMZN), Nvidia (NVDA), Alphabet (GOOGL), Apple (AAPL), Meta (META), and Tesla (TSLA).    

Since it launched, YMAG has generated an annualized average return of 20.6%. Because the fund yields 43%, there has been significant share price erosion.

The Roundhill Magnificent Seven Covered Call ETF (MAGY) holds shares of the Roundhill Magnificent Seven ETF (MAGS), which holds an equal-weight portfolio of the Mag 7 stocks. MAGY launched on April 23, 2025. It yields 27% and has returned 16.4% since it launched.

Overall, returns from YMAG and MAGY have disappointed. I will be tracking KEO to see if the folks at Kurv can build a better mousetrap.

They certainly have with their other ETFs.