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Add Some Income to a Hot Trade
Etftrends· 2025-10-13 16:34
Core Insights - The resurgence of international equities is a significant theme for advisors and investors in 2025, with the MSCI EAFE Index up 24.1% year-to-date compared to the S&P 500's 12.4% return [1] - The NEOS MSCI EAFE High Income ETF (NIHI) offers a higher income proposition for investors in ex-U.S. developed market equities, yielding 2.75%, which is more than double the yield of competing S&P 500 ETFs [1] Group 1 - NIHI debuted last month and follows a simple strategy of selling calls on the iShares Core MSCI EAFE ETF (IEFA), avoiding complex options strategies that can lead to net asset value erosion [2] - The popularity of covered call ETFs has surged, particularly after the 2022 bond bear market, but they come with risks that investors should be aware of [3] - Covered call ETFs provide income through options contract premiums and dividends, but they may limit upside potential if call options are exercised [4] Group 2 - NEOS has demonstrated the ability to manage risks associated with call-writing while allowing for some upside participation for investors [4] - NIHI aims to balance income generation with potential upside, appealing to income-focused investors who also seek some growth [5] - Covered call ETFs may be particularly attractive when underlying securities are expected to trade sideways or decline slightly, allowing investors to trade off potential gains for near-term income [6]
Are covered call ETFs like JEPI, JEPQ, ULTY, and XYLD worth it?
Invezz· 2025-10-08 15:01
Core Insights - Covered call ETFs such as JEPI, JEPQ, ULTY, and XYLD have gained significant popularity in recent years, attracting billions in assets due to their high dividend yields [1] Group 1 - JEPI is identified as the largest covered call ETF, indicating its leading position in the market [1] - The trend of investors embracing these ETFs highlights a shift towards income-generating investment strategies [1] - The substantial inflow of assets into these ETFs reflects a growing demand for high dividend investments [1]
If You Are Covered Call Bear, Then You Have To Consider QDVO
Seeking Alpha· 2025-09-23 13:15
Group 1 - Covered call ETFs have gained significant popularity among market participants over the past couple of years, with an increasing number of these ETFs entering the market featuring differentiated nuances [1] Group 2 - Roberts Berzins has over a decade of experience in financial management, assisting top-tier corporates in shaping financial strategies and executing large-scale financings [2] - Berzins has contributed to institutionalizing the REIT framework in Latvia to enhance the liquidity of pan-Baltic capital markets [2] - His policy-level work includes developing national SOE financing guidelines and frameworks for channeling private capital into affordable housing [2]
VIG: A Top Wealth-Building ETF
Seeking Alpha· 2025-07-17 14:11
Core Insights - The article emphasizes the value of traditional dividend growth ETFs, highlighting their consistent NAV performance and history of increasing dividends, in contrast to the popularity of covered call and leveraged ETFs among investors [1]. Group 1 - Dividend growth ETFs are presented as a reliable investment option due to their historical performance and ability to raise dividends consistently [1]. - The article mentions specific ETFs such as VIG and SCHD, indicating a beneficial long position in these funds [1].