What Is 30-Day SEC Yield?
30-Day SEC Yield is a standardized calculation the SEC requires funds to publish, based on a fund's net investment income (like bond interest or stock dividends) over the trailing 30 days, divided by its share price. It exists specifically so investors can compare funds on an apples-to-apples basis.
Why Covered-Call ETFs Often Show a Low SEC Yield
The SEC Yield formula is built around traditional investment income (interest and qualified dividends) and generally does notcount option premium income the way a covered-call fund's actual distribution rate does. That's why a fund can post a double-digit distribution rate while reporting a near-zero (or even zero) 30-Day SEC Yield — the two figures are measuring genuinely different things, not disagreeing about the same thing.
Which Figure Should You Use?
Neither figure alone tells the whole story. SEC Yield is the standardized, regulator-defined figure for comparing traditional income funds; distribution rate and CRADY's own run-rate yield better reflect what an options-income fund actually pays out in cash, which is usually the more relevant number for these funds specifically.
This page is educational and general in nature — it is not investment advice.
Frequently Asked Questions
Because the standardized SEC Yield formula generally doesn't count option premium income, which is the primary source of most covered-call ETFs' actual cash distributions. The two figures measure different things.
Neither — they answer different questions. SEC Yield is a regulator-standardized figure useful for comparing traditional income funds; for options-income ETFs specifically, distribution rate and actual-payment run-rate yield better reflect real cash paid out.
Most registered funds do, since it's an SEC requirement, though the figure isn't always prominently published or up to date for every fund. CRADY's Official Distribution Center tracks it when available.