Covered Call vs. Buffer ETFs by the Numbers: Funds, Flows and Growth

By Adam Patti, Chief Executive Officer, VistaShares | Published November 13, 2026

Covered call and buffer ETFs both use options, but they are built for different jobs: one turns stock exposure into cash payouts, the other seeks to absorb part of a decline in exchange for a cap on gains. This page puts the two categories side by side with dated figures: how many funds exist, how many firms offer them, how large the biggest fund is, where money has moved and how fast new funds are arriving.

Figure	Covered call and option income ETFs	Buffer ETFs
Funds tracked by ETFIQ (Nov 12, 2026)	396	524
Issuers offering them (Nov 12, 2026)	68	8, for the 431 funds on a single outcome period
Largest single fund, net assets	$47.1 billion (Nov 12, 2026)	$11.1 billion (Nov 11, 2026)
Main subgroups (Nov 12, 2026)	137 on a broad index, 118 on a single stock, 30 on a sector or theme	443 annual, 49 quarterly, 30 laddered, 2 monthly
Net flows, month to Nov 11, 2026	$4.8 billion in, across 238 funds with daily data	$1.1 billion in, across 296 funds with daily data
Net flows, week to Nov 11, 2026	$1.4 billion in, across 241 funds	$249 million in, across 318 funds
Category assets, Morningstar	$127 billion in the Derivative Income category (Sep 30, 2025)	$78 billion across 420 ETFs in the Defined Outcome category (Dec 31, 2025)
U.S. launches, first half of 2026, Morningstar	46	65

Sources: fund counts and issuers, ETFIQ ETF statistics, data as of Nov 12, 2026; largest fund and subgroups, ETFIQ income ETFs and ETFIQ buffer ETFs, as of Nov 12, 2026; flows, ETFIQ fund flows, as of Nov 11, 2026; category assets and launches, Morningstar (see notes 1 to 3). Counts cover the funds ETFIQ tracks, not every fund in the market.

What do these numbers measure?

The first rows count funds, not dollars. ETFIQ tracked 396 option income ETFs and 524 buffer ETFs as of November 12, 2026. Option income here means funds that sell options, most often call options, to generate cash payouts. Buffer means defined outcome funds that hold options designed to offset a stated slice of losses over an outcome period, in exchange for a cap on gains.

Morningstar groups funds differently. Its Derivative Income category and its Defined Outcome category overlap with these groups but are not identical, so the Morningstar asset figures and the ETFIQ counts should be read as two separate measurements rather than added together or compared line by line. Each figure in the table carries its own date for that reason.

Our introductions to option income ETFs and how buffer ETFs work explain the mechanics behind both categories.

How large is each category?

By Morningstar’s measure, the Derivative Income category held $127 billion on September 30, 2025, up from under $1 billion at the end of 2020.¹ The Defined Outcome category held $78 billion across 420 ETFs at the end of 2025.² The two dates differ by a quarter, which is a reminder to check the date before comparing any two category totals.

The largest single fund shows how concentrated each category is. The biggest option income fund held $47.1 billion as of November 12, 2026, while the biggest buffer fund, a laddered fund that holds a series of buffer funds, held $11.1 billion as of November 11, 2026. Morningstar found that only 19 of the 420 defined outcome ETFs held more than $1 billion at the end of 2025, while 191 held less than $50 million.³ In both categories, a small number of large funds hold a large share of the money, and many funds remain small.

How many firms offer each type?

Option income is the more crowded field by issuer count: ETFIQ counted 68 issuers offering option income ETFs on November 12, 2026. Buffer ETFs on a single outcome period came from 8 issuers on the same date. Building a buffer series takes a full calendar of funds, one for each start month, and flexible exchange options that are struck at each reset. That setup cost helps explain why fewer firms run buffer lineups, even though the number of buffer funds is higher.

Structure varies inside each category. Among option income ETFs, ETFIQ counted 137 writing options on a broad index, 118 on a single stock and 30 on a sector or theme. Among buffer ETFs, it counted 443 with annual outcome periods, 49 quarterly, 30 laddered and 2 monthly. Our article on index vs. single-stock covered calls explains why the underlying matters so much for an income fund, and laddering buffer ETFs covers the laddered structure.

Where has money been flowing?

In the month to November 11, 2026, option income ETFs with daily data took in a net $4.8 billion across 238 funds, and buffer ETFs took in a net $1.1 billion across 296 funds. Over the week to the same date, option income funds took in $1.4 billion and buffer funds $249 million.

These flow figures are calculated from each fund’s daily change in shares outstanding, multiplied by the prior day’s net asset value. They cover only funds that publish daily share counts, so they are a large sample rather than a complete count. A single week can swing on one large purchase or sale, which is why the monthly figure is usually the better read on direction.

How fast is each category growing?

New funds keep arriving in both. Morningstar counted 65 defined outcome ETF launches in the U.S. in the first half of 2026, the second most of any category, and 46 derivative income launches, the third most.⁴ In 2025, derivative income drew more inflows than any other Morningstar category through September, with 72 new listings.¹ Cboe reported that ETFs built with options, such as outcome-based and option income funds, made up more than 40% of new U.S. ETF listings in 2025 through early August.⁵

A steady stream of launches gives investors more choice, but it also means many young funds with short records and small asset bases. Our article on what happens when an ETF closes explains the process if a small fund does not attract enough assets.

How do fees compare?

Morningstar reported an average fee of 0.75% for defined outcome ETFs at the end of 2025.² Option income fees vary by structure, since a fund that writes options on a single stock, trades weekly options or adds leverage runs a different strategy from one that writes calls on a broad index. With that much variety, a single category average says little about any one fund. The expense ratio in each fund’s prospectus is the figure that applies to an investor.

Fees are only one part of cost. Option income funds also bear option trading costs inside the fund, and buffer funds carry the cost of the option package that sets the cap and the buffer. Neither shows up as a separate line for the investor.

How should investors use category numbers?

As context, not a signal: fund counts and flows show where investor interest has gone, not whether a category suits a given portfolio.

With the date attached: category figures move every day. A count or flow figure is only meaningful alongside the date it was measured.

With the job in mind: an option income fund is built to produce cash payouts and gives up some upside; a buffer fund seeks to absorb part of a decline over a set period and caps gains. Our comparison of covered call vs. buffer ETFs explains those trade-offs in detail, and how to compare covered call ETFs covers what to check fund by fund.

More income articles are in the Income ETF Guide.

Frequently asked questions

Are there more buffer ETFs or covered call ETFs?

By ETFIQ’s count on November 12, 2026, there were more buffer ETFs (524) than option income ETFs (396). Buffer funds are often launched as a series with one fund per start month, which raises the count quickly.

Which category holds more assets?

On Morningstar’s figures, the Derivative Income category held $127 billion on September 30, 2025, and the Defined Outcome category held $78 billion at the end of 2025. The dates differ, so the comparison is approximate.

Why do fewer firms offer buffer ETFs?

A buffer lineup usually needs a fund for each start month and flexible exchange options at every reset, which takes scale. ETFIQ counted 8 issuers for single-period buffer funds and 68 for option income funds on November 12, 2026.

How are ETF flows calculated?

Net flow is estimated from the daily change in a fund’s shares outstanding times the prior day’s net asset value. It shows money added or withdrawn by investors, separate from market moves.

Do these counts include every fund?

No. They cover the funds ETFIQ tracks, which is a broad but not complete set, and flow figures cover only funds with daily share data. Morningstar uses its own category definitions.

Can an investor hold both types?

Yes. Some investors use option income funds for cash flow and buffer funds for a defined range of outcomes. Each has its own risks, costs and limits on upside, described in the prospectus.

Adam Patti, Chief Executive Officer of VistaShares, is also the founder of ETFIQ. ETFIQ does not accept payment from ETF issuers, and its figures are calculated from public filings and market data.

Cite this page: Adam Patti, "Covered Call vs. Buffer ETFs by the Numbers: Funds, Flows and Growth," VistaShares, updated November 13, 2026, https://www.vistashares.com/covered-call-vs-buffer-etfs-by-the-numbers/. Plain-text version.

This material is provided for educational purposes only. It is not investment, legal or tax advice, and it is not a recommendation or an offer to buy or sell any security. Information is drawn from sources believed to be reliable as of the date of publication, is not guaranteed as to accuracy or completeness, and may change without notice. Figures attributed to third parties are their estimates. Projections and forecasts are not guarantees of future results. Investors should consult their own financial, legal and tax professionals before making investment decisions. Investments involve risk, including possible loss of principal. Strategies that use options involve additional risks, including limited participation in market gains, the risk that options do not perform as intended, and changes in distributions. Tax treatment depends on individual circumstances and on current law, which may change.

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