If you're looking for a way to generate passive income from your investments while keeping things simple, you might have heard about the new Covered Call ETFs. But how do they work, and are they really a game-changer? Let’s break it down! 👇

What Are Covered Call ETFs? 🤷‍♂️

A Covered Call ETF is a fund that invests in stocks but also sells call options on those stocks to generate extra income. Think of it as renting out your stocks in exchange for a premium. 📊💵

🔹 Example: Imagine you own an ETF that tracks the S&P 500. A covered call ETF does the same but also sells call options on those stocks. If the market goes up too much, you miss some gains, but in exchange, you get a steady income stream from the options premiums.

Why Investors Love Covered Call ETFs ❤️

✅ High Monthly Income – These ETFs generate consistent cash flow thanks to the premiums collected from selling options. Great for income-focused investors! 🤑

✅ Lower Volatility – Since these funds earn money even when the market moves sideways, they can be more stable than traditional ETFs. 📉➡️📈

✅ Works in Flat or Bear Markets – Even if stocks don’t go up, you’re still collecting income. This can soften the blow during downturns. 🛡️

The Downsides to Consider ⚠️

❌ Limited Upside – If the stock market rallies, you won’t capture all the gains because the call options cap your profits. 🚀✂️

❌ Not Ideal for Strong Bull Markets – If the market is booming, you might be better off with a regular growth ETF. 📈

❌ Dividends May Vary – While covered call ETFs offer high yields, income is not guaranteed and can fluctuate. 📊

Who Should Consider Covered Call ETFs? 🤔

✔️ Investors looking for steady income

✔️ Those who want to reduce market volatility 📉

✔️ People near retirement who prefer cash flow over growth 🏖️

Popular Covered Call ETFs 🏆

Here are some well-known ETFs in this space:

📌 JEPI (JPMorgan Equity Premium Income ETF) – A mix of blue-chip stocks & covered calls $JEPI

📌 QYLD (Global X Nasdaq 100 Covered Call ETF) – Focused on the Nasdaq 100 $QYLE (-1,07 %)

📌 XYLD (Global X S&P 500 Covered Call ETF) – Applies the strategy to the S&P 500 $XYLD

Final Thoughts 💭

Covered Call ETFs aren’t for everyone, but they can be a powerful tool for those seeking income and stability. If you're okay with trading some upside for regular cash flow, they might be worth a look!

What do you think? Would you use a Covered Call ETF in your portfolio? 💬👇 add me as a friend to check out my portfolio 👥

#degiro
#etf
#coveredcall
#options
#smartinvesting
#sp500

I sold my position in $FLXI (-0,55 %)

$QYLE (-1,07 %) I think will buy more.

Let’s be real—financial freedom isn’t about hitting some magic number and calling it quits. It’s about building a portfolio that pays you, grows for you, and gives you options. I don’t invest to retire and sit on a beach (okay, maybe for a bit 🏝️), I invest so that money stops being a limitation in my life.

I use #degiro as my main brokerage, and over time, I’ve built an ETF portfolio that aligns with growth, income, and resilience. No chasing meme stocks, no panic selling—just consistent, strategic investing. Let me break it down. 👇

1️⃣ The Core: Stability & Global Exposure 🌍

The foundation of my portfolio is broad diversification. I don’t try to outguess the market—I own it.

✅ $VEMT (+0,46 %)– Vanguard Emerging Markets Government Bonds → A bond ETF? Yep! It provides a solid yield and balances out volatility from equities.

✅ $IHYU (+0,28 %) – $ High Yield Bond ETF → I want income, and this ETF helps generate cash flow without relying solely on stocks.

✅ $WEBG (-0,9 %)
– Prime All Country ETF → A global equity powerhouse. If the world economy grows, I grow with it. Simple.

The goal here? Consistency, lower risk, and a smooth ride even when markets get shaky.

2️⃣ Growth Plays: Betting on the Future 🚀

While the core of my portfolio is diversified, I also target high-growth sectors to capture innovation and long-term expansion.

🔹 $QYLE (-1,07 %)
– Global X NASDAQ 100 Covered Call ETF → Tech exposure with an options overlay? That’s a win-win. I get the growth of tech stocks AND extra income.

🔹 $WSML (-1,32 %)
– MSCI World Small Cap ETF → Small caps can be volatile, but they often outperform in the long run. This gives me exposure to future market leaders before they blow up.

I’m not trying to find the next Tesla—I’m betting on a basket of companies that will define the future.

3️⃣ Passive Income: Money That Works for Me 💸

I don’t just invest for capital appreciation—I want cash flow too. That’s where my dividend-focused holdings come in.

💰 $HPRO (-0,34 %)
– FTSE EPRA Nareit Global → Real estate exposure without the hassle of managing properties. It provides solid, steady income.

💰 $QQQY
– IncomeShares Nasdaq

💰 $SPYY
– IncomeShares S&P 500

The dream? My portfolio generating enough passive income to cover my expenses. That’s when you stop trading time for money.

4️⃣ The Wild Card: Emerging Markets 🌎

I believe in global diversification, and that means looking beyond just the U.S. and Europe.

🌏 $DEMD (-0,35 %)
– Emerging Markets Equity Income → I want to be positioned where the next economic growth boom happens. Emerging markets are risky, but over time, they have massive upside potential.

It’s a long-term bet, but one I’m willing to take.

5️⃣ How I Maximize Returns: Options & Leverage 🔥

Now here’s where I take things to the next level. I don’t just hold ETFs—I make them work harder for me.

📌 Selling cash-secured puts → I generate extra income by selling puts on ETFs I already want to own. It’s a smart way to get paid to wait for a better entry point.

📌 The ‘Buy, Borrow, Die’ strategy → Instead of selling assets and paying taxes, I plan to borrow against my investments, keeping my capital compounding while accessing liquidity tax-free.

These strategies separate those who just invest from those who build wealth strategically.

Final Thoughts: Investing is a Marathon, Not a Sprint 🏆

I don’t check my portfolio daily. I don’t freak out when markets drop. I trust the process, the long-term game, and my ability to stay consistent.

At the end of the day, financial independence isn’t about a number—it’s about having the freedom to make choices based on what YOU want, not what your paycheck dictates.

🔥 What’s your investing strategy? Do you use options, dividend ETFs, or emerging markets in your portfolio? Let’s talk! Drop a comment below! 🚀💰 #FIRE
#Investing
#ETFs
#FinancialFreedom

$QYLE (-1,07 %) Sold my entire $QYLE (-1,07 %) position with a nice capital gain and bought $JEPQ (-1,13 %) instead. Both are NASDAQ covered call ETFs, but $JEPQ (-1,13 %) uses out of the money calls instead of in the money calls, so their upside is less capped. The result is a lower dividend, but a much better total return. The European version of $JEPQ (-1,13 %) became available end of 2024.