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This is because covered call sellers receive two income streams: first the dividends, second the premiums from the calls they sell. GLCC is marginally more expensive than peers in the covered call ETF space but is still priced reasonably. Past performance is not necessarily a guide to future performance. To view the purposes they believe they have legitimate interest for, or to object to this data processing use the vendor list link below. It also has the added benefit of reducing risk compared to unwritten portfolios making it a valuable portfolio construction tool. Stocks. Should I borrow money to invest in ETF:s? Clicking Confirm below will take you to a different website, intended for jurisdictions outside the US. Here well review the best covered call ETFs for 2023. 24/7 access to ASX derived option data. You should be able to find these covered call funds at any major broker, including M1 Finance, which is the one Im usually recommending around here. Let's have a closer look at one of the more popular Covered Call ETFs in Canada, ZWB, which has been around since 2011. Global X has launched an ETF implementing a covered call strategy tied to the Russell 2000 Index, which measures the performance of small cap stocks. JEPI is somewhat similar to DIVO in that it is actively selecting stocks from the S&P 500, this time based on value (e.g. Selling call options can generate additional income for a fund, as buyers pay premiums for the right to buy assets at a fixed (strike) price. Instantly scan ASX options to find the highest returns available. //Function to fade in/out the "Go to Top" Link for scrolling You never miss an option and can plan CALL and PUT trades using ASX derived data. Leverage off existing Shares in your super to grow your fund using covered call options. //jQuery(function() { VOO vs. VTI Vanguard S&P 500 or Total Stock Market ETF? They are the Global X S&P/ASX 200 Covered Call ETF (AYLD AU) , Global X S&P 500 Covered Call ETF (UYLD AU) , and Global X Nasdaq 100 Covered Call ETF (QYLD . Furthermore, options premiums tend to be inversely correlated to dividend yieldswith lower dividend yielding stocks producing higher premiums creating a natural hedge. Higher yield. //listen for scroll The indices consist of long positions in the S&P/ASX 200, S&P 500, and Nasdaq 100 indices combined with systematic covered call overlays. Neither of these things is true. Persons in respect of whom such prohibitions apply should not access these websites. Ouch. This is an important distinction between the ETF and the mutual fund. Global X Management Company LLC disclaims responsibility for information, services or products found on the websites linked hereto. Using live fund data, heres a backtest for the period 2008-2022 for PBP, the covered call ETF from Invesco for the S&P 500 that we covered earlier, a 60/40 portfolio using PBP for the equities side, and a classic 60/40 portfolio using a starting balance of $1 million and monthly withdrawals of $5,000, adjusted for inflation:Source: PortfolioVisualizer.com. We and our partners use cookies to Store and/or access information on a device. Lower volatility. By subscribing to email updates you can expect thoroughly researched perspectives and market commentary on the trends shaping global markets. Learn everything you need to know about Global X S&P 500 Covered Call ETF (XYLD) and how it ranks compared to other funds. RYLD comes with an expense ratio of 0.60% and lists on Cboe Global Markets, parent company of ETF.com. On May 15, 2016, you look at the market price for Apple shares and see that it is $120. The premiums not only provide an income uplift, but also a second stream to draw from if dividends fall or dry up. With a covered call ETF, you can for instance put together a basket of 1 Apple share, 1 Microsoft share, 1 Alphabet Class A . Stock Market Overview Market Momentum Market Performance Top 100 Stocks Today's Price Surprises New Highs & Lows Economic Overview Earnings Within 7 . switchWidth: 810, Historically, investors came to the Nasdaq for growth, not yield. There are currently 70 Canadian covered-call exchange-traded funds (ETFs) with combined AUM over $10 billion, so the odds are you'll run into one. QYLD seeks yield from the Nasdaq-100 via options premium. el.fadeOut(settings.fadeSpeed); Historically, during bear markets, range-bound markets, and modest bull markets, covered call strategies have generally outperformed their underlying securities. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Use of this website is subject to the terms of our disclaimer, cookies statement and privacy policy. jQuery('#top-link').click(function(e) { QYLD - Global X NASDAQ 100 Covered Call ETF. I lead the Paid Search marketing efforts at Gild Group. This allows me to continue producing high-quality, ad-free content on this site and pays for the occasional cup of coffee. Does that make it the best covered call ETF? In doing so, DIVO leaves more upside potential but has a lower distribution yield than other funds on this list. The two most popular covered-call ETFs are QYLD and JEPI respectively paying 11.5% and 7.5% APY. As part of this, the fund holds the constituents of the S&P/ASX 200 Index while selling at-the money 1, call options on the same index on a quarterly basis. A shareholder may be obliged to pay one type of tax on certain payments received from the fund and another type of tax for other payments received from the fund. The tax that . The strategy may be utilized by investors who wish to diversify their sources of yield away from equities and bonds which historically have struggled during rising rate environments. Links to these websites are not intended for any person in any jurisdiction where by reason of that person's nationality, residence or otherwise the publication or availability of the website is prohibited. }, settings); Read my lengthier disclaimer here. Distributions are paid on the payment date, which is announced ahead of time on the ASXs website. Global X Management (AUS) Limited ACN 150 433 828 AFSL No 466778. As the seller, Im hoping it stays flat. AYLD aims to provide investors with a return that, before fees and expenses, tracks the performance of the S&P/ASX BuyWrite Index. Investment products discussed (ETFs, mutual funds, etc.) Lastly, here are some frequently asked questions about covered call ETFs. We (Global X) will usually forecast how big we expect a distribution to be around one week prior to the ex-distribution date. The fat yields have made . RYLD launched later than its peers in 2019 and has about $1.4 billion in assets. Selling covered calls is an investment strategy that can be used to generate additional income from the stock positions you already own. While these forecasts will be as accurate as practically possible, they are only estimates and are subject to corrections and revisions. But should we buy one of those ETFs to collect the passive income. Credit (Getty Images) View as article. PSLDX A Review of the PIMCO StocksPLUS Long Duration Fund. BetaShares Australian Top 20 Equity Yield Maximiser v Australia 20 Index: Income and Volatility . settings = jQuery.extend({ It's named qyldgang since when this sub was made, it was the most popular covered call ETF. Once again, thinking of yield as income separate from principal, while it may make you feel better, is just mental accounting with no magical benefits. }); The buyer of that call option is hoping QQQ goes up. Youre taxed on any taxable distributions, regardless of whether or not you reinvest them. The safe withdrawal rates (SWR) of these portfolios for that period were 6.89%, 7.59%, and 9.09% respectively. Explore research, content or product pages within our site, You Are Now Leaving the Australia Website of Global X ETFs. Furthermore, options premiums tend to be inversely correlated to dividend yieldswith lower dividend yielding stocks producing higher premiums creating a natural hedge. If you issue a call option without actually owning the underlying shares (that you promise to sell to the option holder), this is called naked selling or naked-call. Unlike a mutual fund, the EFT will not have its net asset value (NAV) calculated once at the end of every day (but the funds underlying holdings are disclosed to the public every day). min: 1, I designed a dividend portfolio for income investors here that may appeal to you. Take the FREE trial, or see my special first month 1/2 price offer. The premiums AYLD generates may partly cushion drawdowns. (7HANDL ETF). Shareholders will, in most jurisdictions, pay tax on the money they receive from the fund. Traditional IRA Which Is Better for You? Explore research, content or product pages within our site, You Are Now Leaving the Australia Website of Global X ETFs. In the interest of full disclosure, its also worth noting that these short backtests paint a somewhat unrealistically rosy picture for these covered call funds. We adhere to a strict Privacy Policy governing the handling of your information. The fund invests in the Nasdaq 100 Index on a fully replicated basis. nested: true, These ELNs introduce a layer of credit risk for investors. KNG - First Trust Cboe Vest S&P 500 Dividend Aristocrats Target Income ETF. Betashares offers two exchange traded managed funds that employ the covered call strategy, meaning you can participate in the benefits (and risks) of the strategy without having to get involved in the options market yourself. This means that you should aim to buy QYLD at least two business days before the record date (as ETF trades take two business days to settle) should you wish to receive a distribution. A covered call is a two-part "buy-write" options strategy in which a stock is purchased or owned and calls are sold on a share-for-share basis. Required fields are marked *. I'm not a big fan of social media, but you can find me on LinkedIn and Reddit. Its index is the CBOE Russell 2000 BuyWrite Index. Covered call strategies in a closed-end fund may help long-term investors manage short-term volatility. Tax efficiency. When we stop to think, this makes perfect sense, as Value crushed Growth in 2021 and 2022, and DIVO is specifically selecting Value stocks. This relatively elevated volatility level compared to historical averages led to higher premium levels in the month of August for our covered call funds. However, writing call options provides a third source of income, derived from the premiums received from the selling of options. Selling call options can generate additional income for a fund, as buyers pay premiums for the right to buy assets at a fixed (strike) price. The fund invests in the S&P/ASX 200 Index on a fully replicated basis. Basically, in market downturns, a covered call fund will fall with the market by an amount precisely equal to the markets drawdown minus the income received from the option premium. window._wpemojiSettings = {"baseUrl":"https:\/\/s.w.org\/images\/core\/emoji\/14.0.0\/72x72\/","ext":".png","svgUrl":"https:\/\/s.w.org\/images\/core\/emoji\/14.0.0\/svg\/","svgExt":".svg","source":{"concatemoji":"https:\/\/www.etfstrategy.com\/wp-includes\/js\/wp-emoji-release.min.js?ver=6.1.1"}}; irrational preference of dividends as income, dividend portfolio for income investors here, Check out my flat-fee-only fiduciary friends over at Advisor.com, VOO vs. SPY vs. IVV The 3 Best S&P 500 ETFs (2023), Improving M1 Finances Moderately Conservative Portfolio Pie, No, Covered Call Options Are Not a Free Lunch, SPAXX vs. FZFXX, FDIC, FCASH, FDRXX Fidelity Core Position, The 3 Best Transportation ETFs To Watch in 2023, Ray Dalio All Weather Portfolio Review, ETFs, & Leverage (2023), HEDGEFUNDIEs Excellent Adventure (UPRO/TMF) A Summary, Golden Butterfly Portfolio Review and M1 Finance ETF Pie, David Swensen Portfolio (Yale Model) Review and ETFs To Use, Harry Browne Permanent Portfolio Review, ETFs, & Leverage (2023), Corporate Bonds vs. Government Bonds (Treasuries) The Showdown, VIG vs. VYM Vanguards 2 Popular Dividend ETFs (Review), Warren Buffett ETF Portfolio (90/10) Review and ETFs (2023), The 60/40 Portfolio Review and ETF Pie for M1 Finance, Bogleheads 3 Fund Portfolio Review and Vanguard ETFs (2023), Paul Merriman Ultimate Buy and Hold Portfolio Review, M1 Pie (2023), Lowest Margin Rates Brokers (2023 Comparison), M1 Finance vs. Vanguard Brokerage Comparison [2023 Review], M1 Finance vs. Fidelity Brokerage Comparison [2023 Review], The Best M1 Finance Dividend Pie for FIRE & Income Investors, Portfolio Asset Allocation by Age Beginners To Retirees, The 5 Best Stock Brokers Online for Investing (2023 Review), The 4 Best Investing Apps for Beginners (2023 Review), The 7 Best Small Cap ETFs (3 From Vanguard) for 2023, The 6 Best REIT ETFs To Invest in Real Estate for 2023, The 6 Best Tech ETFs To Buy Tech Stocks in 2023, 9 Best Clean Energy ETFs To Go Green in Your Portfolio (2023), The 13 Best Small Cap Value ETFs (3 From Vanguard) for 2023, Why, How, & Where To Invest Your Emergency Fund To Beat Inflation, VOO vs. VTI Vanguards S&P 500 and Total Stock Market ETFs, 9 Best International ETFs To Buy (6 From Vanguard) in 2023, Ben Felix Model Portfolio (Rational Reminder, PWL) ETFs & Review, Gone Fishin Portfolio Review (Alexander Green) & ETFs (2023). . Creation occurs when an AP assembles a portfolio of underlying assets and hands that over to the ETF in exchange for newly created EFT shares. In my opinion, complex funds like these are usually just a great way for asset managers to extract more fees at the detriment of retail investors. The crypto covered call ETFs offered by Purpose Investments provide HIGH yields. Example: By using leverage, an ETF where the underlying is platinum can gain 3x for each 1x increase in the price of platinum. At no additional cost to you, if you choose to make a purchase or sign up for a service after clicking through those links, I may receive a small commission. This material may contain links to third party websites. Introduction What Are Covered Call ETFs and How Do They Work? jQuery(window).scroll(function() { } QYLD was the first covered call ETF to use this index. We and our partners use data for Personalised ads and content, ad and content measurement, audience insights and product development. The Global X Nasdaq 100 Covered Call ETF (QYLD) follows a "covered call" or "buy-write" strategy, in which the fund buys the stocks in the Nasdaq 100 Index and "writes" or "sells" corresponding call options on the same index to generate income over and above dividends. This means covered call strategies can generate income above what can be generated from just owning the shares. Investments may go up or down in value and you may lose some or all of the amount invested. The CBOE NASDAQ-100 BuyWrite Index is a benchmark index that measures the performance of a theoretical portfolio that holds a portfolio of the stocks included in the NASDAQ-100 Index, and "writes" (or sells) a succession of one-month at-the-money NASDAQ-100 Index covered call options. Over 75% of options are held until expiration and expire worthless. It then sells monthly exchange traded Nasdaq 100 Index call options at-the-money worth roughly 100% of the value of the portfolio, with the cash received from option sales reinvested into the Nasdaq 100 Index. var el = jQuery(this); You should consult an independent investment adviser prior to making an investment in order to determine its suitability to your circumstances. As with QYLD and XYLD, the fund has an expense ratio of 0.6% with monthly distributions. While these forecasts will be as accurate as practically possible, they are only estimates and are subject to corrections and revisions. Persons in respect of whom such prohibitions apply should not access these websites. An exchange traded fund (ETF) is a marketable security that tracks an index, a commodity, bonds, or a basket of assets like an index fund. Lower costs. Removing that high yield, the capital appreciation component of some of these funds has actually been negative since inception, as is the case for QYLD:QYLD without dividend reinvestment. On June 24, Canadian ETF provider Horizons tapped the services of Exchange Traded Concepts to roll out its first United States exchange-traded fund, Horizons S&P 500 Covered Call ETF . Yet it also greatly limits the upside potential. Covered-call ETFs generate income by selling call options on a portion of their shares. The tax that the fund itself must pay. If we go back to PBPs inception in 2007 and look through 2022, we can see a visualization of the shortcomings I mentioned at the top, mainly that covered calls are not an efficient way to de-risk a portfolio and they tend to hamper long term returns:Source: PortfolioVisualizer.com. Earn extra income by selling covered calls against your existing portfolio. Effective on June 27, 2022, they've added another to their covered call suite: the Horizons . This irrational preference of dividends as income is just a well-documented and admittedly understandable mental accounting fallacy. QYLD seeks to generate income through covered call writing, which historically produces higher yields in periods of volatility. Our suite of actively managed covered call ETFs is designed to provide exposure to key equity benchmarks and asset classes while generating additional income . }); Only you can decide whether or not a covered call ETF is worth it, as that will depend on your personal goals. The Global X S&P/ASX 200 Covered Call ETF (AYLD) uses a "covered call" or "buy-write" strategy in an effort to generate yield enhancement over and above dividends and franking. Covered calls 101 - my simple explanation. Don't subscribeAllReplies to my comments Notify me of followup comments via e-mail. By using leverage, the ETF can gain boost its gain from a price change in the underlying. By subscribing to email updates you can expect thoroughly researched perspectives and market commentary on the trends shaping global markets. Because were looking at total return, we can exclude PBP because its total return is virtually identical to XYLD. Tail Risk What It Is and How To Hedge Against It, I Bonds Explained (US Savings Bonds) Ultimate Guide (2023), JEPI ETF Review JPMorgan Equity Premium Income ETF, Sharpe Ratio vs. Sortino vs. Calmar Risk Adjusted Return, Portfolio Risk Explained How To Think About Risk and Volatility, HNDL ETF Review Is HNDL a Good Investment? Please show me, Full access toMy Covered Calls Option Yield Reports (to quickly identify high option returns exercised or not exercised), Access on all your devices including mobile phones, Download free ProWriter Plus Trading Plan software to plan trades, and see actual income returns before you commit. Despite its strong performance the past decade, many Australians have steered clear as the Nasdaq pays a lower dividend yield than other indexes. Save time and minimise risk of missing an opportunity. JEPI - JPMorgan Equity Premium Income ETF. // jQuery( "#tabs" ).tabs({ fx: { opacity: 'toggle'}}); Do you own any of them? Generally speaking, the payment date falls two weeks after the record date. RYLD finishes the Global X covered call ETF trifecta and uses the Russell 2000, which is roughly 2000 small- and mid-cap stocks from the investable U.S. stock market. combine: true, That is, those dividends (which are technically really not dividends but rather distributions from option premiums) are not considered qualified dividends. 7 Best Covered Call ETFs. We'll assume you're ok with this, but you can opt-out if you wish. el.fadeIn(settings.fadeSpeed); The profit from selling the shares isnt realized until you actually make the sell, but it can still be interesting to follow the daily changes in share price for Apple. About - My Toolbox - Privacy - Terms - Contact. Consider 3 different scenarios: An ETF with a NAV of $10 and during the year generates $1 in option premium. VXUS vs. IXUS Vanguard or iShares International ETF? At the end of the day, total return is what matters. If the fund is liquidated, any residual value goes to the shareholders. Covered call ETFs do usually have much higher fees than, say, a plain index fund for the S&P 500 Index like VOO from Vanguard. Disclosure: Some of the links on this page are referral links. Respectively, they track the S&P 500, the Nasdaq 100, and the Russell 2000. shares) that you own, and issue a call option for them. It takes me a few hours a month from home. As you can see, your investment becomes more valuable as the share price increases. To be fair, covered call funds certainly arent the worst way Ive seen to try to generate income. return this.each(function() { The ticker symbol is ZWB for the BMO Covered Call Canadian Banks ETF. Learn More. //smoothscroll While QYLD uses the NASDAQ 100, Global X also offers XYLD, which uses the famous S&P 500, comprised of the 500 largest publicly traded companies in the United States. Examples of well-known exchange traded funds: Compared to mutual fund shares, ETF:s tend to have higher liquidity and lower fees. Instead, the fund retains the money and invests it, with the hope of creating a class of income that can be distributed to shareholder without triggering tax liability for the recipients. Of course, this also means that the ETF risks losing 3x for each 1x decrease in the price of platinum. The Global X Russell 2000 Covered Call ETF (RYLD) tracks the Cboe Russell 2000 BuyWrite Index. The subsequent website(s) may be governed by different privacy policies, terms and conditions, or regulatory restrictions. If the fund sounds familiar, that's because it used to be the Horizons NASDAQ 100 Covered Call ETF when we last . The PowerShares S&P 500 BuyWrite Portfolio ETF (PBP B+) buys an S&P 500 stock index portfolio and writes near-term S&P 500 index covered call options on the third Friday of each month.With an expense ratio of 0.75%, the ETF is the most expensive of the three funds, despite having the lowest dividend yield. Global X rolls out Russell 2000 covered call ETF, Global X launches Nasdaq 100 covered call ETF in Europe, Global X adds two US equity ESG ETFs to covered call suite, Global X launches half-covered S&P 500 and Nasdaq 100 ETFs, Global X rolls out three income-enhanced US sector ETFs, Horizons Nasdaq 100 Covered Call ETF reaches $100m AUM milestone, Horizons changes index of S&P 500 covered call ETF, Global X launches income-enhanced US small-cap ETF, Global X adds Dow Jones ETF to covered call series, Credit Suisse issues covered call strategy ETN on iShares Silver ETF, Horizons debuts in US with S&P 500 covered call strategy ETF, Evolve unveils Enhanced Yield Canadian and US equity ETFs, Horizons launches Active S&P/TSX 60 Covered Call ETF, Stoxx expands Euro Stoxx 50 covered-call index series, Credit Suisse lists SPDR Gold Shares Covered Call ETN, Use of this website is subject to the terms of our, Two Distinct Opportunities in China Innovation and Technology - KraneShares, A new innovative approach to access Chinas technological rise - UBS Asset Management. Generally speaking, the payment date falls two weeks after the record date. Now it's not all perfect, since they're writing call options they need to sell the holdings every time they end up in the money. Topics may span disruptive tech, income strategies, and emerging economies. Cloud Computing: Being Digital in Volatile Markets - First Trust. buying something and writing an option on that thing. Im a fan of simply selling shares as needed for any income needed, which should be mathematically preferable anyway if you dont actually need that income on a monthly basis, as it allows you to leave more money in the market longer. Convenience. prependTo: "#page" It is mandatory to procure user consent prior to running these cookies on your website. Take the guess work out of the equation and never miss an opportunity by instantly seeing the highest returns (YIELD), available by using My Covered Calls. read. However, during strong bull markets, when the underlying securities may frequently rise through their strike prices, covered call strategies historically have tended to lag. (In this example, we have chosen to overlook any transaction costs.). The OIH is a sector ETF tracking the oil industry. This sounds nice and arguably even sensible, but upon empirical investigation, this argument doesnt hold much water either, at least over the past 15 years. The two components are held in equal notional amounts. See their actual option returns now. Novice investors seem to have this idea that the income from these expensive buy-write funds are free money and that selling shares of a low-cost index fund like VTI to realize gains of an equal amount is somehow inferior to receiving a monthly distribution. About Covered Calls. The average expense ratio is 0.71%. //jQuery.noConflict(); Dev.Max DrawdownSharpeQYLD2.86%14.45%-22.74%0.18XYLD4.41%14.98%-23.43%0.28DIVO11.51%15.69%-18.86%0.69KNG9.42%17.66%-23.52%0.53SP5009.97%18.87%-23.95%0.5360/406.30%11.64%-20.62%0.48Data Source: PortfolioVisualizer.com. jQuery.fn.topLink = function(settings) { By continuing to browse the site, you are indicating your acceptance of these terms. BMO Covered Call Energy ETF etfs funds price quote with latest real-time prices, charts, financials, latest news, technical analysis and opinions. Covered call writers own the underlying security and collect a premium on the option sold, providing current income. Roth IRA vs. Even then, as Ive noted elsewhere and as the backtests above show, there are more efficient, more effective ways to de-risk a portfolio, like bonds. None of these links imply Global Xs support, endorsement or recommendation of any other company, product or service. Necessary cookies are absolutely essential for the website to function properly. Your email address will not be published. Happy to talk about Covered Calls anytime. Selling covered calls can help investors target a selling price for the stock that is above the current price. JEPI is an income ETF from J.P. Morgan. This ETF is more of a value play than it is a growth strategy, since most of the . AYLD distributes income to investors on a quarterly basis, while UYLD and QYLD do so monthly. As such, theyre usually somewhat in between a true index fund and an actively managed fund that selects stocks. Global Xs covered call ETFs deliver an alternative source of income that is uncorrelated with equities and bonds. With 39 ETFs traded on the U.S. markets, Covered Calls ETFs have total assets under management of $11.85B. This was a big wake-up call for many QYLD investors in early 2022, when Global X announced that 100% of QYLDs distributions for 2021 would be classified as and thus taxed as ordinary income, not as ROC. To receive a distribution, you must own the ETF the trade must have fully settled on the record date. Global X NASDAQ 100 Covered Call ETF QYLD is a more sophisticated selection, which Davi says makes sense in a market where lofty stock valuations and volatility are expected . You can screen both CALL and PUT options for buying or selling. QYLD is the most popular covered call ETF with nearly $7 billion in assets, which is more than half of the total assets under management of all covered call ETFs combined (about $12 billion). In some jurisdictions, an important tax-distinction is made between dividends received by the fund, income generated by selling options, and income that has been generated by selling fund assets and making a profit that way. iShares funds are powered by the expert portfolio and risk management of BlackRock. Covered Calls and ETF. Expiring options are bought back at the time weighted average ask price between 4:20 pm and 4:25 pm Sydney time. YMAX seeks to enhance dividend income through what is known as a 'covered call' strategy. Proponents seem to erroneously believe that covered call ETFs are somehow made safe by their selling options. I am not a financial advisor, portfolio manager, or accountant. are for illustrative purposes only. As such, with a fee of 0.49%, you could think of PBP as basically a cheaper version of XYLD that reinvests dividends and option premiums instead of distributing them. /*! Ongoing education on option trading and personal support via phone, email or over coffee (Gold Coast/Brisbane). This forecast is made public on the announcement date. Horizons ETFs offers one of the largest families of covered call ETFs in Canada giving you more "options" to meet your income needs. DIVO has a distribution yield of 4.80% and a fee of 0.55%. I cringe at the thought of new investors buying exotic exchange-traded funds (ETFs).Recently, this includes covered call ETFs, which unsuspecting investors are drawn to because of the high . Global X S&P 500 Covered Call ETF (XYLD) The Global X S&P 500 Covered Call ETF (XYLD) is a high-yield covered call ETF that invests in high-quality, high dividend-paying stocks from the S&P 500 index. The tax treatment of your investment in a Covered Call ETF will very depending on jurisdiction. }); (Reader note: For the record, we are not endorsing covered call funds generally or the Hamilton fund in particular. This makes XYLD more diversified than QYLD. The DIA tracks the Dow Jones Industrial Average Index. Unique service helping people plan option trades and earn income by writing call options over shares. In the past year, the price return for Credit Suisse X-Links Silver Shares Covered Call ETN (NASDAQ . Tony 0408763663, To learnabout trading covered calls please download the, LIVE Report, and Trend Charts; for BHP, BSL and TLS. TQQQ Is It A Good Investment for a Long Term Hold Strategy? Some of our partners may process your data as a part of their legitimate business interest without asking for consent.