You all know how covered call ETFs work, right? 😅
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@Get_Rich_or_Die_Tryin But isn't it really just a half-covered call ETF? You could call it a "hybrid ETF." After all, some of the price potential is still preserved. Isn't it actually quite well-suited for the current market phase?
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@Get_Rich_or_Die_Tryin We know it, but we buy that stuff anyway. 😏😂
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@Get_Rich_or_Die_Tryin In my opinion, this is the best candidate currently available on the market. That said, it isn’t strictly a credit carry strategy per se; it also invests in Treasuries and short-term instruments.
Furthermore, unlike most funds, this one doesn’t just blindly sell calls; in addition to the areas mentioned earlier, it also participates—if not to the full extent—in the upside of the holdings...
That’s why you could actually compare it more to a high-yielding “World” fund, although the structure wouldn’t be quite as tech-heavy in comparison.
After a little over a year, my total return here is a solid 13–14%, though you have to take into account that I’ve been regularly buying more each month for the past 3 months, which causes my overall performance to dip slightly from time to time.
You also have to look at the historical performance and then be pleased to see that it has held up very well even amid all the ups and downs and back-and-forth of recent years—and doesn’t track like all the other CCs.
In these scenarios, it doesn’t actually drop much more than some other “non-CC ETFs,” and conversely, it recovers regularly just like all the others. I always see this comparison quite clearly with my wife’s “All World” fund (both are about the same size) 😉
...and that’s exactly why I wouldn’t lump everything together in this analysis.
Furthermore, unlike most funds, this one doesn’t just blindly sell calls; in addition to the areas mentioned earlier, it also participates—if not to the full extent—in the upside of the holdings...
That’s why you could actually compare it more to a high-yielding “World” fund, although the structure wouldn’t be quite as tech-heavy in comparison.
After a little over a year, my total return here is a solid 13–14%, though you have to take into account that I’ve been regularly buying more each month for the past 3 months, which causes my overall performance to dip slightly from time to time.
You also have to look at the historical performance and then be pleased to see that it has held up very well even amid all the ups and downs and back-and-forth of recent years—and doesn’t track like all the other CCs.
In these scenarios, it doesn’t actually drop much more than some other “non-CC ETFs,” and conversely, it recovers regularly just like all the others. I always see this comparison quite clearly with my wife’s “All World” fund (both are about the same size) 😉
...and that’s exactly why I wouldn’t lump everything together in this analysis.
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