These 4 Covered Call Funds Can Turn Anything Into Super-Sized Yields

Core Insights - Covered-call strategies are beneficial for income investors, providing returns regardless of market direction, with some funds yielding as high as 89% [2][5] Group 1: Overview of Covered Calls - Covered calls involve selling call options against stocks already owned, allowing investors to earn premiums while potentially selling shares at a predetermined price [4] - This strategy generates income in flat and down markets, making it appealing for income-focused investors [5] Group 2: Fund Analysis - FT Vest Rising Dividend Achievers Target Income ETF (RDVI): Offers an 8.2% yield, focusing on dividend growers from the Nasdaq US Rising Dividend Achievers Index, but has shown underperformance compared to its index [6][8] - FT Energy Income Partners Enhanced Income ETF (EIPI): Launched in 2024 with a 7.3% yield, actively manages covered calls on individual energy stocks, outperforming its energy benchmark [9][12] - Global X Russell 2000 Covered Call ETF (RYLD): Provides a 12.1% yield, but has underperformed its index despite offering limited downside protection [11][14] - YieldMax NVDA Option Income Strategy (NVDY): Features an exceptionally high yield of 88.9%, trading NVIDIA shares and selling calls, but sustainability of returns is questionable if NVIDIA's stock performance declines [15][16]