4J·

Is growth possible?

To what extent can $WINC (-0,25 %) generate growth?

I asked myself this question today.

Is this possible only through the savings rate and reinvesting dividends, or can the return on investment plus the dividend yield also increase significantly over the years?

10 Commentaires

Automatix@Automatix

Definitely not—you should check out $LDGL, for example.

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Olli@Olli68

This growth is by no means driven solely by savings contributions or reinvestments, as the underlying portfolio of high-quality stocks generates rising profits over the long term and thus genuine dividend growth. Although the systematic sale of call options limits maximum price growth during strong uptrends, the fund’s capital still grows moderately in positive markets. The main driver of wealth accumulation here lies in the combination of substantial cash flow from high option premiums and the compound interest effect when those premiums are reinvested.

P.S.: In my view, this is not a core ETF, but rather a supplement for regular distributions. Or for retirement, when regular distributions are more important than price performance.

In my view, one of the best CC ETFs.

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Keineui@Keineui

Define "significant"! Currently, 11.x% over two years plus dividends is already enormous.

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Musikerie@Musikerie

Significant? No!

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Gurkenboss@Gurkenboss

There isn't much growth potential here. But that's not the idea anyway…

A product that offers a 10% dividend AND steady growth has yet to be developed 💰

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❤️DIST-LOVE@DISTLOVE

Covered call ETFs are NOT designed for growth, but primarily to generate the highest possible distributions or current income.

Admittedly, the WINC is a good covered call ETF whose strategy certainly allows for price appreciation, provided market conditions permit it.

However, in the long term, you won’t be able to achieve price growth with these ETFs that’s comparable to that of traditional ETFs without a covered call strategy.

If you want to combine growth with options income, you should look into strategies using cash-secured puts. With these, price potential isn’t limited. $OVL, for example.

BUT if a bear market hits, you’d better have a box of tissues ready, because it could be a pretty painful experience. 😅👍

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Solitair@Solitair

@DISTLOVE The Winc is not purely a covered call ETF; it also trades in futures.

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❤️DIST-LOVE@DISTLOVE

@Solitair Yeah, thanks for the additional information, but I already knew that.

In the U.S., there are now some really interesting covered call ETFs with different strategies that, in my opinion, are significantly more sophisticated than what’s available to us here in Europe as UCITS-compliant options. Personally, I currently consider the WINC to be the best income ETF you can trade in Europe.

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