As the name suggests, QYLD from Global X owns stocks from the NASDAQ 100 Index and writes covered calls on them. Schwab US Dividend Equity ETF Covered Calls - Barchart.com //listen for scroll When we talk about taxes and ETF, were are usually taking about two things and it is important to not mix them up. It takes me a few hours a month from home. Selling call options can generate additional income for a fund, as buyers pay premiums for the right to buy assets at a fixed (strike) price. If you would like to change your settings or withdraw consent at any time, the link to do so is in our privacy policy accessible from our home page.. By continuing to browse the site, you are indicating your acceptance of these terms. Call options are usually sold to generate income in a flat or mild bear market. The 6 Best High-Yield Covered Call ETFs Now - Sure Dividend This material may contain links to third party websites. This means covered call strategies can generate income above what can be generated from just owning the shares. Manage Settings Technically these funds also have indexes for a hypothetical buy-write strategy. Persons in respect of whom such prohibitions apply should not access these websites. These cookies do not store any personal information. While these forecasts will be as accurate as practically possible, they are only estimates and are subject to corrections and revisions. Put another way, a covered call is a hedged strategy as the writer is in a position to deliver the stock if it is called. Always check up on applicable laws and regulations before you make any investment. JEPI is a comparatively newer ETF from J.P. Morgan that launched in mid-2020 and has quickly amassed nearly $19 billion in assets. The 8 Best Small Cap ETFs (4 From Vanguard), The 5 Best EV ETFs Electric Vehicles ETFs, VIG vs. VYM Comparing Vanguards 2 Popular Dividend ETFs, The Best Vanguard Dividend Funds 4 Popular ETFs, The 5 Best Emerging Markets ETFs (1 From Vanguard) for 2023. Furthermore, options premiums tend to be inversely correlated to dividend yieldswith lower dividend yielding stocks producing higher premiums creating a natural hedge. Conveniently, this backtest includes the major drawdowns of 2008, 2018, and 2022, giving us a pretty good stress test. Planning and writing covered call options is easy with My Covered Calls.