Weekly Dividend ETFs: Definitions

Explaining all the common used terms in weekly dividend ETF investing

If you are new to weekly dividend ETFs you will see a lot of phrases and terms that might feel confusing at first. Here is a simple beginner friendly glossary that explains all the common language used in the world of weekly income ETFs.

Weekly Dividend ETF

An exchange traded fund that sends out income every week from option premiums, interest or dividends.

Weekly Distribution

The actual cash payment you receive from a weekly income ETF — usually the same weekday each week.

Distribution Yield

The percentage yield based on recent distributions — the most important number for weekly ETF investors.

Covered Call Strategy

Holding a stock or index and selling call options on it to earn weekly option premiums that become your payout.

Option Premium Income

The money the ETF earns from selling options weekly — the main fuel for weekly payouts.

Single Stock Weekly ETF

Generates weekly income based on one individual stock (NVDA, AAPL, etc.).

Index Based Weekly ETF

Earns income from an entire index — often more stable exposure.

Net Asset Value (NAV)

The true value of the ETF’s underlying holdings per share.

Ex Dividend Date

Buy before this date to get that week’s payout.

Pay Date

The day the weekly payout hits your brokerage account.

Reinvestment

Using your weekly payout to buy more shares — fastest way to grow income.

Yield Trap

Very high yield that isn’t sustainable — always check consistency.

Total Return

Price growth + weekly income combined.

If you understand these terms you’ll have a rock-solid foundation for weekly dividend ETF investing — and you’ll be able to pick the best funds with confidence.