High-Yield ETFs With Weekly Income Potential: TSLY, CONY, MSTY, PLTY Explained

Investors today are increasingly searching for ways to generate consistent passive income. With traditional savings accounts and government bonds still offering relatively low yields, attention has shifted toward high-dividend ETFs that utilize option strategies to deliver frequent income.

Among these, the YieldMax ETF series has gained popularity due to its use of covered call strategies to generate monthly cash distributions. In this post, we’ll explore four of the most followed ETFs in this category—TSLY, CONY, MSTY, and PLTY—and show how they can be combined to create a weekly income strategy.

What Are High-Yield Covered Call ETFs?

These ETFs do not rely on traditional dividends. Instead, they earn option premiums by writing (selling) covered calls on a single underlying stock. The premiums are then distributed to shareholders as monthly income.

While the advertised yields may appear extremely high (some over 70–90% annualized), it’s important to understand:

• These are not traditional dividend payouts.
• Part of the income may be classified as return of capital.
• The funds may lose capital value over time due to market volatility or price decay.

Overview of the Four ETFs

1. TSLY (Tesla-based)

• Tracks the price of Tesla (TSLA) and generates income from selling call options.
• Due to Tesla’s high volatility, TSLY offers some of the highest monthly payouts.
• Suitable for income-seeking investors who are comfortable with risk.

2. CONY (Coinbase-based)

• Follows Coinbase Global (COIN), a crypto-focused stock.
• Offers high income, but payouts can fluctuate depending on crypto market sentiment.
• Best for investors with moderate crypto exposure tolerance.

3. MSTY (Microsoft-based)

• Targets Microsoft (MSFT), a more stable and established tech stock.
• Lower volatility means slightly reduced income but greater consistency.
• Appropriate for conservative income investors.

4. PLTY (Palantir-based)

• Tracks Palantir Technologies (PLTR), an AI and defense-related stock.
• High option premiums allow generous distributions, but the stock is volatile.
• Good for investors focused on emerging tech themes.

Build a Weekly Income Schedule

Though these ETFs pay monthly, their distribution dates are staggered. By combining multiple funds, you can design a portfolio that delivers income almost every week.

For example:

• Week 1: Receive payout from TSLY
• Week 2: Receive payout from MSTY
• Week 3: Receive payout from PLTY
• Week 4: Receive payout from CONY

This structure mimics a weekly paycheck—appealing for early retirees or income-focused portfolios.

Considerations Before You Invest

Before investing, consider the following:

• Return of Capital (ROC): A portion of the payout may reduce your cost basis, not your gains.
• Volatility Risk: These ETFs are tied to individual stocks and can decline in price significantly.
• Taxation: U.S. and foreign investors should review tax implications, especially on short-term capital gains or ROC.
• Not Buy-and-Hold: These are income-generating tools, not long-term growth investments.

Final Thoughts

High-yield covered call ETFs like TSLY, CONY, MSTY, and PLTY offer an innovative way to boost cash flow—especially when combined into a weekly income plan. They are not without risk, but for those who understand their structure and manage position sizing, they can be a powerful part of an income-focused strategy.

As always, diversification, awareness of market conditions, and understanding the fund’s mechanics are key to long-term success.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult a financial advisor before making investment decisions.