TappAlpha SPY Growth & Daily Income ETF

TSPY

Market cap $249M

Positioning into high-yield ETFs is prudent amid persistent inflation and uncertain rate cuts. Overlay Shares Large Cap Equity ETF (OVL) offers a differentiated put-selling strategy, monthly yields above 10%, and market-beating returns since inception. TappAlpha SPY Growth & Daily Income ETF (TSPY) delivers a higher 14.56% yield via daily options, but with capped upside and recent NAV declines due to volatility.

I advocate for value-oriented covered call ETFs with underlying holdings beyond AI-saturated large-cap growth indices like SPY and QQQ. The risks for NAV erosion and income declines are higher on this front. Despite these risks, including some QQQ/SPY-linked covered call ETFs could enhance diversification and capture higher yields from volatility and growth.

TappAlpha SPY Growth & Daily Income ETF targets high monthly income with direct S&P 500 exposure and an active 0DTE option-writing strategy. TSPY currently offers a 14.6% yield, but total returns (13.5%) lag SPY and peer SPYI due to capped upside and lack of downside protection. Return of capital distributions dominates payouts, supporting tax efficiency but risking NAV erosion if market declines persist.

TSPY and (XDTE) are compared for their performance in sideways markets. TSPY is rated 'Buy' for its transparent structure, slightly higher total return since inception, and lower risk of capital erosion versus XDTE, which is rated 'Hold'. XDTE offers a higher weekly dividend yield (36.87% vs. TSPY's 14.76%) and greater tax efficiency, but suffers from significant capital erosion and higher risk.

Volatility and dispersion are the likely key themes for 2026. The sky-high valuations and increasingly shaky economic/financial fundamentals support that view. At the same time, the market's "put mechanism," which has made the buy-the-dip strategy work since really the GFC, has not disappeared.

The TappAlpha SPY Growth & Daily Income ETF targets high-yield investors by pairing a long SPY position with daily out-of-the-money call selling. TSPY's daily option resets offer greater upside capture during rallies versus traditional covered call ETFs but introduce higher risk in volatile or declining markets. The current macro backdrop—falling rates, strong GDP, and equity momentum—supports TSPY's directional strategy for investors bullish on new S&P 500 highs in 2026.

SEATTLE, Jan. 13, 2026 (GLOBE NEWSWIRE) -- TappAlpha, an ETF platform helping define the Growth + Income investing category, today announced that it has surpassed $250 million in assets under management (AUM)—three months after hitting the $100 million mark. This rapid growth has been fueled by advisor and investor demand for TSPY and TDAQ, two actively managed ETFs offering daily income overlays on top of broad market exposure to the S&P 500 and Nasdaq-100, respectively.

TappAlpha SPY Growth & Daily Income ETF earns a Strong Buy rating for its superior yield and S&P 500 upside capture versus SPYI. TSPY delivers 13-14% yields and better total returns than SPYI, though with less downside protection due to its 0DTE options strategy. SPYI remains a Buy for its consistent 10%+ yields, tax efficiency, and lower volatility, but TSPY's higher payouts may better suit most income investors.

SEATTLE, Jan. 07, 2026 (GLOBE NEWSWIRE) -- TappAlpha and Tuttle Capital Management, two innovators in ETF design, today jointly announced the launch of the T² Lift™ Series — a new line of ETFs seeking to offer light-leverage exposure to the daily income and growth strategies behind TSPY and TDAQ. The T² Lift™ Series aims to give investors 30% more exposure to the same daily growth and income strategies used in TSPY (S&P 500) and TDAQ (Nasdaq-100) — two of the fastest-growing ETFs in the market.

Current market valuations are near dot-com bubble highs, especially in AI leaders, where the P/S are just extreme. The fact that we have entered 2026 with an active 3-year bull run does not help either. However, we have to be also mindful of the risk that comes with such a thinking - i.e., the risk of incurring painful opportunity cost.