# Option Income vs. Bond ETFs by the Numbers: Assets, Fees and Flows

Source: https://www.vistashares.com/option-income-vs-bond-etfs-by-the-numbers/
Published: 2026-11-13 | Updated: 2026-11-13

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

Option income ETFs and bond ETFs are both used by investors who want regular cash payments, but they produce that cash in different ways: one sells options on stocks, the other collects interest on bonds. In the numbers, bond ETFs are the larger and cheaper category, while option income funds are fewer and cost more to run. This page compares the two with dated figures on fund counts, assets, fees and flows.

Figure | Option income ETFs | Bond ETFs |

Funds tracked by ETFIQ (Nov 12, 2026) | 396 | 853 |

Share of the 5,146 ETFs ETFIQ covers (Nov 12, 2026) | 8% | 17% |

Combined net assets (Nov 12, 2026) | $217.2 billion, 383 of 396 funds reporting | $2.7 trillion, all 853 funds reporting |

Median yearly fee, per prospectus (Nov 12, 2026) | 0.94% | 0.25% |

Largest single fund, net assets | $47.1 billion (Nov 12, 2026) | $167.4 billion (Oct 31, 2026) |

Net flows, month to Nov 11, 2026 | $4.8 billion in, 224 of 396 funds counted | $27.2 billion in, 344 of 852 funds counted |

Net flows, week to Nov 11, 2026 | $1.4 billion in, 200 of 396 funds counted | $5.7 billion in, 342 of 852 funds counted |

Outside measures (Morningstar and ICI) | $127 billion in the Derivative Income category (Sep 30, 2025) | $443 billion of bond ETF net issuance in 2025 |

Sources: fund counts and shares, [ETFIQ ETF statistics](https://etfiq.com/statistics/), data as of Nov 12, 2026; assets, fees and largest fund, [ETFIQ income ETFs](https://etfiq.com/income/) and [ETFIQ bond ETFs](https://etfiq.com/bonds/), as of Nov 12, 2026; flows, [ETFIQ fund flows](https://etfiq.com/flows/), as of Nov 11, 2026; outside measures, Morningstar and ICI (notes 1 and 2). Flows count only funds with daily share data.

## What do these two categories hold?

An option income ETF usually holds stocks, or exposure to stocks, and sells call options against them. The premium from those options is the main source of its cash payments, and in exchange the fund gives up some of the stock's upside. A bond ETF holds a portfolio of bonds and passes along the interest they pay. Its value moves mainly with interest rates and the credit of the borrowers.

So the two categories answer different questions. A bond fund's payments depend on the interest its bonds pay; an option income fund's payments depend largely on how much option buyers are willing to pay, which rises and falls with market volatility. Our comparison of [option income vs. bond ETFs](https://www.vistashares.com/option-income-vs-bond-etfs/) explains those mechanics, and our guides to [option income ETFs](https://www.vistashares.com/what-are-option-income-etfs/) and [bond ETFs](https://www.vistashares.com/bond-etfs-explained/) cover each in more depth.

## How many funds are there, and how large?

ETFIQ tracked [396 option income ETFs and 853 bond ETFs](https://etfiq.com/statistics/) as of November 12, 2026, or 8% and 17% of the 5,146 ETFs it covers. Bond ETFs held a combined [$2.7 trillion](https://etfiq.com/bonds/), against [$217.2 billion](https://etfiq.com/income/) for the 383 option income funds that reported assets. By that measure the bond category is more than 12 times as large.

The largest single fund in each category tells a similar story. The biggest bond ETF held $167.4 billion as of October 31, 2026; the biggest option income ETF held $47.1 billion as of November 12, 2026. Both categories are concentrated: a handful of large funds hold much of the money, and many funds remain small.

Outside estimates point the same way. Morningstar's Derivative Income category held $127 billion on September 30, 2025, up from under $1 billion at the end of 2020.[1] ICI reported that bond ETF net issuance, the value of new shares created minus shares redeemed, rose from $295 billion in 2024 to $443 billion in 2025.[2] Each source uses its own fund set, so its figures should not be added to ETFIQ's.

## How do fees compare?

The median option income ETF charged [0.94% a year](https://etfiq.com/income/) as of November 12, 2026, against [0.25%](https://etfiq.com/bonds/) for the median bond ETF. Index bond ETFs are cheaper still on an asset-weighted basis: ICI put their average expense ratio at 0.09% in 2025.[3]

The gap reflects the work involved. An option income fund has to select, sell and roll options on a schedule, often weekly or monthly, and many are actively managed. A broad bond index fund mostly tracks a list of bonds. A median also hides a wide spread on both sides: the median high yield bond ETF charged [0.40%](https://etfiq.com/bonds/high-yield/), against [0.16%](https://etfiq.com/bonds/intermediate-core/) for the median intermediate core bond ETF, and option income funds that write options on single stocks had a higher median fee than those that write on a broad index.

## Where has money been flowing?

In the month to November 11, 2026, bond ETFs with daily data took in a net [$27.2 billion](https://etfiq.com/flows/) across 344 funds, and option income ETFs took in $4.8 billion across 224 funds. In the week to the same date, bond ETFs took in $5.7 billion and option income ETFs $1.4 billion.

These estimates come from each fund's daily change in shares outstanding multiplied by the prior day's net asset value. They count only funds that publish daily share data, which is why the number of funds counted is shown each time. The flows page counted 852 bond funds rather than 853, so its fund set differs slightly from the statistics page.

## How do they behave differently?

**What moves the price:** bond ETFs move mainly with interest rates and credit spreads. Option income ETFs move mainly with the stocks or index underneath them, with gains limited by the options they sell.

**What drives the payments:** bond fund payments track the interest on the bonds held. Option income payments track option premiums, which are higher when markets are volatile and lower when they are calm, so they can vary more from month to month.

**How payments are taxed:** bond interest is generally taxed as ordinary income. Option income distributions can include a mix of tax classifications, including return of capital, a tax classification shown on the fund's year-end tax forms. Our article on [how covered call ETFs are taxed](https://www.vistashares.com/how-are-covered-call-etfs-taxed/) explains the categories.

## How should investors read these numbers?

**Size is not suitability:** the bond category is far larger, which reflects decades of use as a core holding, not a judgment on either type.

**Payments are not total return:** what a fund pays out and what it earns can differ. Our article on [distribution yield vs. total return](https://www.vistashares.com/distribution-yield-vs-total-return/) explains why both matter.

**Dates matter:** every figure on this page applies to the date shown. More income articles are in the [Income ETF Guide](https://www.vistashares.com/income-etf-guide/).

## Frequently asked questions

### Are there more bond ETFs or option income ETFs?

Bond ETFs. ETFIQ tracked 853 bond ETFs and 396 option income ETFs on November 12, 2026.

### Which category holds more assets?

Bond ETFs, by a wide margin. ETFIQ put combined bond ETF net assets at $2.7 trillion, against $217.2 billion for the option income funds that reported assets, as of November 12, 2026.

### Why do option income ETFs cost more?

They sell and roll options on a set schedule and are often actively managed. The median fee was 0.94% for option income ETFs and 0.25% for bond ETFs on November 12, 2026.

### Which took in more money recently?

Bond ETFs took in $27.2 billion in the month to November 11, 2026, against $4.8 billion for option income ETFs, counting only funds with daily share data.

### Can an option income ETF replace a bond ETF?

They carry different risks. An option income fund is exposed to stock market declines, while a bond fund is exposed to interest rate and credit risk. Many investors who hold one also hold the other.

### Where do these counts come from?

From ETFIQ's category pages, which cover a broad but not complete set of U.S. ETFs. Morningstar and ICI use their own fund sets, so their figures are shown separately.

## NOTES

- Morningstar, "The Big Winners in the Active ETF Race, So Far," Derivative Income category assets of $127 billion as of September 30, 2025, https://www.morningstar.com/funds/big-winners-active-etf-race-so-far.
- Investment Company Institute, "2026 Investment Company Fact Book, Chapter 4: US Exchange-Traded Funds," bond ETF net issuance for 2024 and 2025, https://www.icifactbook.org/pdf/2026-factbook-ch4.pdf.
- Investment Company Institute, "Trends in the Expenses and Fees of Funds, 2025," index bond ETFs 0.09% asset-weighted in 2025, https://www.ici.org/system/files/2026-03/per32-01.pdf.
- ETFIQ, ETF statistics, data as of November 12, 2026 (fund counts and shares), https://etfiq.com/statistics/; ETFIQ, Covered call and option income ETFs, data as of November 12, 2026 (net assets, median fee, largest fund), https://etfiq.com/income/; ETFIQ, Bond ETFs, data as of November 12, 2026 (net assets, median fee, largest fund), https://etfiq.com/bonds/; ETFIQ, ETF fund flows, flows as of November 11, 2026, https://etfiq.com/flows/. Pages read November 13, 2026.
- 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.

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.

## IMPORTANT INFORMATION

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.

Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call (844) 875-2288 or visit www.VistaShares.com. Read the prospectus or summary prospectus carefully before investing.

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