Gold Income Strategies: Balancing Upside Potential with Steady Yield

Gold has been one of the standout assets of the past year. The SPDR Gold Shares ETF (GLD) surged 42% over the last 12 months as investors sought safety in hard assets amid global uncertainty. While that kind of rally excites momentum investors, gold is also well known for long periods of stagnation. During those times, income-producing gold-focused funds can offer an appealing alternative.

The Covered Call Approach to Gold Investing

Covered call exchange-traded products aim to generate steady income by selling call options on the underlying asset. In the case of gold, this strategy can supplement income since bullion itself does not pay dividends. The tradeoff, however, is that selling calls caps upside potential, so investors may underperform during strong rallies.

1) SPDR Gold Shares (GLD) — the pure bullion benchmark

Expense ratio: 0.40% Description: Physically backed gold exposure designed to track the LBMA gold price. No income stream; total return is driven by spot gold. YTD return 34%..

2) UBS ETRACS Gold Shares Covered Call ETN (GLDI) — sell calls for income

Expense ratio: 0.65% Description: An ETN (unsecured note of UBS) linked to the Credit Suisse NASDAQ Gold FLOWS™ 103 Index, which holds GLD notionally and sells ~3% out-of-the-money one-month calls. Premiums become variable monthly coupons, but upside is capped in strong rallies. Over the past year, GLDI’s total return has been ~21%–25%, trailing GLD’s surge—exactly the trade-off you’d expect in a bull run.

Why it behaves this way: When gold rips through the call strikes, you keep the option income but forfeit a chunk of price gains, so total return can lag spot-gold trackers like GLD. (You are paid to give up some upside.)

3) Kurv Gold Enhanced Income ETF (KGLD) — active, options-driven income

Expense ratio: 1.00% (net) Description: Actively managed ETF that seeks to outperform gold’s price return while generating monthly income by writing options on gold ETPs. Kurv’s launch materials emphasize a flexible overlay; third-party coverage notes the team may sell weekly options and toggle between calls and puts based on volatility conditions, allowing faster strike resets than monthly writers. Note: the fund is new (inception July 2025), so operating history is limited and results will hinge on manager execution.

Bottom Line

For investors seeking pure exposure, GLD remains the go-to choice to track the price of gold. Those willing to sacrifice some upside for income may look to funds like GLDI, which converts gold’s price stability into high yields but underperforms during strong bull runs. Meanwhile, Kurv’s KGLD adds an innovative twist with weekly option resets, potentially improving flexibility and responsiveness in volatile markets.

Ultimately, the decision comes down to investor goals: maximize gold’s upside potential, or trade some growth for more predictable income.

Compare these different gold ETFs with our ETF Compare Tool