If you’re chasing dependable monthly income from your investments — especially in accounts like a TFSA or RRSP — exchange-traded funds that focus on high distributions can be an efficient way to get regular cash without buying individual high-yield stocks. Two standout Canadian-listed ETFs offer high monthly payouts by combining equity exposure with income-enhancing strategies.

The first ETF that deserves attention is the Hamilton Enhanced Canadian Covered Call ETF (TSX: HDIV). This fund uses a covered-call strategy across a diversified mix of Canadian equities and applies modest leverage to boost income, resulting in a yield currently around 10.5% per year. Because it writes covered calls on holdings and uses about 25% leverage, HDIV generally produces higher monthly distributions than many traditional dividend ETFs. That makes it appealing for income-focused investors — retirees, for example — who prioritise monthly cash flow over maximum long-term capital gains. However, the use of leverage and covered calls also means the fund can underperform in sharp bull markets and may experience amplified downside in tougher conditions.

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The second ETF is the Hamilton Enhanced Utilities ETF (TSX: HUTS), which targets defensive sectors like utilities and telecommunications while also employing the same modest leverage used by HDIV. With a yield near 6.5%, HUTS provides a blend of steady underlying business exposure and enhanced monthly payouts. Its focus on essential, income-generating industries can help smooth out volatility relative to broader equity markets, making it a suitable choice for investors who want income plus a degree of stability.

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Both ETFs are structured to distribute income monthly, which is especially attractive if you’re budgeting for regular expenses or simply prefer frequent cash flow. They offer diversification across sectors and income strategies in a single ticker, which can be simpler than assembling a portfolio of individual high-yield stocks. That said, these high-income ETFs come with trade-offs — such as limited upside in strong equity rallies and additional layers of risk from leverage and options strategies — so investors should weigh yield against risk tolerance and long-term goals.