Covered Call ETFs

[dualstow]

Cortopassi has a thread about covered calls, but I don’t see one about the new ETFs.
Saw an article in the WSJ and I’m curious. They do all the option trading for you, resulting in high yield, but of course you miss out on the market gains you’d get by just owning an index. This is *not* for the pp.

Best in a sideways market.

For those of you with a WSJ subscription, here’s a link: https://on.wsj.com/3RPm00a

Example tickers: JEPI, XYLD

[Smith1776]

My father was a huge fan of covered call ETFs. I remember when he passed away I saw some covered call funds he was invested in that held dividend paying stocks. (He didn't understand dividend irrelevance theory.) With the dividends and call option income combined, some of the yields on those funds were approaching 10%

[dualstow]

Like your late Dad, I am a fan of Dividend Irrelevance Theory Irrelevance Theory.
You know, the theory that Dividend Irrelevance Theory is irrelevant.

[Smith1776]

Like your late Dad, I am a fan of Dividend Irrelevance Theory Irrelevance Theory.
You know, the theory that Dividend Irrelevance Theory is irrelevant.

Hehe.

Having now seen his total assets and portfolio, I must say my dad's results were really quite great.. especially considering he was a mechanic and not a financial professional.

The saving and disciplined budgeting is harder than the investing part, and he particularly excelled at that.

He loved seeing those dividends coming in, especially from REITs, which I also have a soft spot for.

[Cortopassi]

I own DIVO and JEPI and IDVO.

I decided if I am going to have anything at risk in the market, it better darn well pay me ongoing for that risk vs. just a growth potential.