1Wk
With a simple Nasdaq100 ETF you would have made 2.5% YTD. With your investment sum of just under 90k, that would have been over 2000€. So rent for February secured at the same time.
I somehow don't understand the hype about covered call ETFs. 🤷
I somehow don't understand the hype about covered call ETFs. 🤷
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@Epi it has also made another 2.2% price gain
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@SemiGrowth even. Plus 1% distribution
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1Wk
@SemiGrowth True, the overall difference over a month is not significant. Although price gains are not decisive for CC investors anyway. Over a year, the difference is already considerable and over a decade it is likely to be unbelievably large.
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@Epi It's a test, not hype. It's going well at the moment. As for the future, we'll see
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•@Epi But isn't the point of covered call ETFs that you are hedged downwards? Of course it underperforms in a good year
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•@Epi well, 6% over one year. In 2021/2022 it will certainly have performed significantly better than the Nasdaq
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@Epi but yes, in the long term you are of course right. But you should perhaps also put performance in relation to volatility. The risk-free return should be higher
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1Wk
@SemiGrowth Hedged to the downside? How did it perform in 2008-9 and 2020?
In the summer of 2024, it also lost around 10% - similar to the original.
Nothing seems hedged to me.
In the summer of 2024, it also lost around 10% - similar to the original.
Nothing seems hedged to me.
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1Wk
@SemiGrowth What is the risk-free return over the last 25 years?
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@Epi I did a bit of research, it seems to be extremely difficult to find out. Found 7 covered call ETFs with widely varying performance. Most of them are significantly worse than the Nasdaq. So you're probably right.
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