2Mon·

Opinions on the XYLP

Good morning everyone. What is your opinion on the subject of covered calls and the $XYLP (+0.1%) ? Buy or stay away

7 Comments

2Mon

annual chart. The dividends don't make up for it, it's going badly or sideways. While other assets are in the green.

At least questionable. Covered means you may be hedged on the downside, but also on the upside. And if it goes sideways or upwards, you are always worse off.

Since you should invest where the market is going up, covered calls are always questionable. If I think the market is going down, I should not invest in the market.

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Melchior@ColdzeroNL

1Mon

I have 4% price increase this year so far so it also depends on when you invest in this product to experience price growth. Add the 10% dividend and guess how I feel about this CC ETF.

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Joris@JorisInvests

1Mon

@ColdzeroNL same for me 👍🏻. I'm wondering what people are going to say when their investments are down 30% and the cc etf is down 30% as well, but in the meantime payed out 9% in income (from cc premiums/dividends).

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Johnny B.@JBatelli

2Mon

In the last 12 months:
S&P500. 7.9%
CC S&P500. 0.4%
So if you want to leave that much return (including dividends) just to have distributions, then you can do it. Otherwise, hands off.

For me, the best CC ETF is $WINC because it comes close to the performance of the MSCI World.

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Joris@JorisInvests

2Mon

@JBatelli in what currency are you comparing both against one and another? Just want to make sure if you are comparing apples to apples and not pears.

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Johnny B.@JBatelli

2Mon

@JorisInvests Euro

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Joris@JorisInvests

2Mon

@JBatelli thank you 👍🏻

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