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Phil
@PhilPS
1Sem.·

WINC—what's the catch?

$WINC (-0,13 %) A dividend yield of nearly 10% and top-tier companies included. What's the catch here?

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21 Commentaires
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S.A.U.@SAUgut777
1Sem.
I've held this for just under a year now, and my total return is 8.83%, or 15.87% including 3 dividends...All in all, pretty good, and starting this month, I’m just letting it roll over in my savings plan with €75 in current dividends 👍🏻
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AI sagt@GoDividend
1Sem.
@SAUgut777 Sounds like Ing is a broker
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S.A.U.@SAUgut777
1Sem.
@GoDividend nein...SB+
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S.A.U.@SAUgut777
1Sem.
@GoDividend What made you think of Ing?
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AI sagt@GoDividend
1Sem.
@SAUgut777 Starting at a net payout of €75, free reinvestment 😂
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S.A.U.@SAUgut777
1Sem.
@GoDividend Nah, I just set up a simple savings plan with SB+—it costs me less than 75€ and only takes 2 minutes to set up 🤷🏻‍♂️
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Dirk aus Stade@dirko68
1Sem.
@SAUgut777 Wow, that's taking you a long time. I love these savings plans.
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S.A.U.@SAUgut777
1Sem.
@dirko68 The longest part was figuring out exactly how much 😂

I'm not really a fan of savings plans, and I really had to get past my inner "Monk" at first... I just don't like those decimal places 😇
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Dirk aus Stade@dirko68
1Sem.
@SAUgut777 Well, I know that Monk, too. But I'm really enjoying it now.
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Smudo@Smudeo
1Sem.
Additional returns are generated through the sale of call options on global stock indices (covered call strategy).
Geographically, the U.S. dominates with ~67%, followed by Japan (~7%) and European markets.
The current dividend yield is approximately 9.5–9.8%—significantly above the market average—which is attributable to the integrated options strategy.
The relatively low volatility of 8.8%, combined with high distributions and strong 1-year performance, points to an attractive risk-return profile.
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S.A.U.@SAUgut777
1Sem.
@Smudeo They don't just offer calls here—recently, there was even a short position 🤫😉
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NichtRelevant@NichtRelevant
1Sem.
The $WINC is an ETF for investors who want very high distributions and are willing to sacrifice price performance in return.

The high distributions are achieved through a covered call strategy—the ETF writes options on the stocks it holds in its portfolio. If one were to hold the ETF’s individual positions without options, one would very likely achieve stronger price performance but with significantly reduced distributions.

My portfolio is set up as a distribution-focused portfolio, which is why the $WINC fits very well into my portfolio and makes up a large portion of it. I’ve had good experiences with this ETF so far—but I would still never include covered call structures as my sole holding; rather, I’d only add them as a supplement to my portfolio.
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AI sagt@GoDividend
1Sem.
@NichtRelevant It accounts for just under 8% of the portfolio. He's doing a great job 😅
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S.A.U.@SAUgut777
1Sem.
@NichtRelevant It's not just CCs, but also some short-term ones 🤫😉
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S.A.U.@SAUgut777
1Sem.
@GoDividend I feel the same way—I'm at just under 7% right now, and I'm just going to let it run its course here through my savings plan 👍🏻
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GHF@GHF
1Sem.
There's no catch, but the downside is the stock's performance
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Phil@PhilPS
1Sem.
@GHF But the high dividend 🤷🏻‍♂️
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GHF@GHF
1Sem.
@PhilPS That's the deal
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Thomas Hauck@tomtom38
1Sem.
@GHF One of the better ones—the options aren't written indiscriminately on everything. I also have a small position that has risen by 11 percent in 12 months. It's all about the cash flow here. If you reinvest it wisely, you'll get a return of about 8 percent. Of course, there are stocks and ETFs where the expected price performance can yield much higher returns.
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Thomas@Thomas_1963
1Sem.
I wondered the same thing at first, but based on the positive comments here, I added 10% to my portfolio in early June. It’s already up 5% in just one month. I hope it keeps going like this. 🙂
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income_magician_2489@income_magician_2489
1Sem.
Low price volatility > call options that are sold > MSCI-based dividends
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