Total AssetsRecent volatility has been high, with significant divergence in buying/selling and long/short positions. In this situation, stabilizing dividend income while waiting for opportunities is also an option:
Here's a comparison of several ETFs recently discussed by foreign investors. In addition to the existing $JPMorgan Nasdaq Equity Premium Income ETF(JEPQ.US)$Goldman Sachs Nasdaq-100 Core Premium Income ETF(GPIQ.US), the newly added ones include $NEOS Nasdaq-100(R) High Income ETF(QQQI.US)$PIMCO Dynamic Income Fd(PDI.US)$Simplify Volatility Premium ETF(SVOL.US)$Guggenheim Strategic Opportunities(GOF.US). These three ETFs offer relatively stable dividends but don't use covered call strategies. The latter two have significant premium rates due to different investment directions. For detailed information, you can check ETFdb. There's also the relatively stable $Schwab US Div Eq(SCHD.US).
The comparison is based on two conditions: 1. How much principal is needed to receive $1,000 in after-tax dividends per month per ETF with tax benefits; 2. Fixed investment of $50,000 and the corresponding monthly after-tax dividend income under the same conditions. The current prices are as of the pre-market on March 14 when this post was made.
Around the beginning of 2024, ETFs operating with the covered call (CC) strategy started attracting attention. Besides products linked to the S&P 500 and Nasdaq indices, several companies also launched CC ETFs focused on individual stocks. Some influencers promoted these products through videos and articles.
Today, I compiled a simple table comparing the profit and loss of CC ETFs from two major issuers against their underlying stocks.
The table simply compares the returns of these products' holdings since January 1, 2024.
From a practical perspective: I remain skeptical about these CC ETFs. Even during the volatile periods when influencers claimed high returns, they didn't outperform simply holding the underlying stocks and selling calls yourself—it's just more convenient. Personally, I've liquidated all positions.$Kurv Yield Premium Strategy Apple Aapl ETF(AAPY.US)$YieldMax AAPL Option Income Strategy ETF(APLY.US)$Apple(AAPL.US)$YieldMax NFLX Option Income Strategy ETF(NFLY.US)$Kurv Yield Premium Strategy Netflix NFLX ETF(NFLP.US)$Netflix(NFLX.US)$Yieldmax Tsla Option Income ETF(TSLY.US)$Kurv Yield Premium Strategy Tesla TSLA ETF(TSLP.US)$Tesla(TSLA.US)
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