Looking for a sources of information on Covered Call ETFs. I tried to provide one source, a link to a Google Spreadsheet, but it does not display or link properly. Here is a screen shot.
basically scams. The purport cash flow but will often dip into their capital base to provide that cash flow (ie they paying dividends with your own money).
I tend to agree. At least 60% of them display continual degrading NAV. There are a few which are better (without significantly degrading NAV) if you are seeking income (SPYI and QQQI in my opinion). But you would still be better off from a Total Returns perspective by just investing in the underlying index (SPY and QQQ). Typical the funds with lower NAV erosion are using OTM calls, the portfolio coverage is less than 90%, pay monthly and have dividend yields below 20%.
Exactly. plus tax benefits of just being long are better. you can overwrite yourself when you think it opportunistically makes sense. There’s a handful of times when upside distribution is prob not going to be realized (like now).
Nav decreasing is a healthy characteristic for high-yield dividends... If nav didn't decrease during lean times, these yields would be unsustainable. For other moderate dividends or growth dividends, yeah, you would expect growth... But you also get much lower income.
agreed. I would do it myself if I were you. the idea of buy writing is sound. It’s not cash flow though. It’s speculation.
That's like $600 a year on $100,000 invested for most of them.. you're going to spend more than that on fees doing it yourself. Anyway, it's all a moot point if you're not willing to hold on to the shares... If you're going to close for a loss everytime price goes against you, it will be nothing more than an exercise in futility. ESPECIALLY with your level of TA.
SPYI is the new "wunderkid," better than QYLD and RYLD for the long term. It offers small growth with dependable income (12.5%). Feature SPYI QYLD RYLD Yield (current) ~12% ~12% ~12-13% Upside Growth ✅ Moderate ❌ Capped ❌ Capped Tax Efficiency ✅ Yes (60/40 rule) ❌ Less ❌ Less Volatility ✅ Lower ⚠️ Moderate ❌ High Drawdown Risk ✅ Lower (broad S&P) ⚠️ Tech-heavy ❌ Small-cap risk Monthly Income ✅ Yes ✅ Yes ✅ Yes