From 24/7 Wall St. · Ryne Mauck · · 2m
Covered Call ETFs: $4,632 Annual Gap
Four covered call ETFs earn $10,453-$15,085 yearly on $100,000 but show a $4,632 annual income gap.
In brief
Four covered call ETFs earn $10,453-$15,085 yearly on $100,000 but show a $4,632 annual income gap. Investing $100,000 in covered call ETFs yields $10,453-$15,085 annually with a $4,632 gap between top and bottom performers. Originally reported by 24/7 Wall St..
Covered Call ETFs Offer Monthly Income
Four covered call ETFs promise monthly income from the same basic strategy.
Annual Income Ranges from $10,453 to $15,085
Putting $100,000 into each of four covered call ETFs yields $10,453 to $15,085 annually.
NEOS Russell 2000 High Income ETF Pays $4,632 More
The NEOS Russell 2000 High Income ETF (CBOE:IWMI) pays $4,632 a year more than the Global X S&P 500 Covered Call ETF (NYSEARCA:XYLD).
Global X Funds Land in Between
The Global X Russell 2000 Covered Call ETF (NYSEARCA:RYLD) and Global X Nasdaq 100 Covered Call ETF (NASDAQ:QYLD) fall between the top performers.
The Fund Paying Most Lags on Total Return
The fund that paid the most ranked behind two others on total return.
How Covered Call Funds Turn Market Swings Into Cash
A covered call means holding stocks and selling options to purchase them at a set strike price for monthly income.
Volatility Drives Option Premiums
Market volatility increases option premiums, bringing in more cash when indices move hard.
IWMI Pays $1,257 Monthly with Small-Cap Upside
IWMI paid the most with a trailing yield of 15.1%, $1,257 monthly on $100,000, and 13% one-year return.
IWMI Uses Out-of-the-Money Calls
IWMI sells Russell 2000 index calls at more than one strike, including November contracts at 2875 and 2925, to capture small-cap upside.
RYLD Caps Gains on Small Caps
RYLD sells calls at the money on the Russell 2000 Index, yielding 12.4% ($1,035 monthly) but with 11% one-year return.
QYLD Earns Tech Premiums with Best Return
QYLD writes Nasdaq-100 calls, tracks tech-heavy holdings, and delivered 20% one-year return.
XYLD Offers Broadest Coverage
XYLD tracks the S&P 500 across 505 holdings, yielding 10.5% ($871 monthly) with 17% one-year return.
The key point
Investing $100,000 in covered call ETFs yields $10,453-$15,085 annually with a $4,632 gap between top and bottom performers.
