Covered call exchange-traded funds (ETFs) can be a great option for income investors looking to boost their returns. These funds combine the benefits of dividends with the potential for additional income through writing covered calls on the underlying securities.
Here are 7 high-yield covered call ETFs that income investors may find appealing:
1. Global X NASDAQ 100 Covered Call ETF (QYLD): This ETF tracks the performance of the NASDAQ 100 Index while generating income through writing covered calls on the index components.
2. Horizons S&P 500 Covered Call ETF (HSPX): This fund seeks to provide investors with exposure to the S&P 500 Index while generating income through covered call writing.
3. First Trust High Income ETF (FTHI): This ETF focuses on high-yield securities while utilizing a covered call strategy to enhance income potential.
4. Global X S&P 500 Covered Call ETF (HSPX): This fund aims to generate income by writing covered calls on the S&P 500 Index.
5. Invesco S&P 500 BuyWrite ETF (PBP): This ETF seeks to provide investors with exposure to the S&P 500 Index while generating income through a buy-write strategy.
6. ProShares S&P 500 Dividend Aristocrats ETF (NOBL): This fund focuses on companies that have a history of increasing dividends and utilizes a covered call strategy to enhance income potential.
7. Horizons Enhanced Income Equity ETF (HEX): This ETF aims to provide investors with enhanced income potential through a covered call strategy on equity securities.
These high-yield covered call ETFs offer income investors the opportunity to potentially boost their returns while maintaining exposure to a diversified portfolio of securities. Investors should carefully consider their investment goals and risk tolerance before investing in any of these funds.