$WINC may be the more sensible alternative. The future will show. But it should be clear to everyone that JE** ETFs will not necessarily beat the MSCI World in the long term.
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3Wk
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@Quiny
Wherever calls are sold, the top is capped and the bottom is barely protected.
That's the deal.
Wherever calls are sold, the top is capped and the bottom is barely protected.
That's the deal.
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22
•@Yoshika
This means that covered call products generate a constant income for the issuer and you bear the performance risk and underperformance.
This means that covered call products generate a constant income for the issuer and you bear the performance risk and underperformance.
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33
•@Yoshika
...and do not even deliver diversification, but just another form of equity risk with a truncated return.
And they only deliver cash flow because they cut off growth.
Compared to value ETFs or bonds, they are actually the most inefficient tool for the same purpose, no matter what strategy you pursue.
The risk is equity risk, you cut
profits, take every drawdown in full, but not the recovery. And the cash flow hardly cushions this.
They may be tactically tolerable in sideways phases. But that doesn't make them strategically efficient, because you cut growth 80% of the time just to get some payout 20% of the time. This may look attractive, but in economic terms it remains a drag on returns with equity risk.
...and do not even deliver diversification, but just another form of equity risk with a truncated return.
And they only deliver cash flow because they cut off growth.
Compared to value ETFs or bonds, they are actually the most inefficient tool for the same purpose, no matter what strategy you pursue.
The risk is equity risk, you cut
profits, take every drawdown in full, but not the recovery. And the cash flow hardly cushions this.
They may be tactically tolerable in sideways phases. But that doesn't make them strategically efficient, because you cut growth 80% of the time just to get some payout 20% of the time. This may look attractive, but in economic terms it remains a drag on returns with equity risk.
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11
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