An 11.7% ETF Yield – What Are You Giving Up? #shorts

How can a covered call ETF offer an annualised distribution yield of around 11.7% when the Nasdaq-100’s dividend yield is only roughly half a per cent? The difference comes largely from selling call options. The premiums received can help fund monthly distributions, but the strategy also limits participation in strong market gains. That means the fund may provide considerably more income than ordinary Nasdaq-100 exposure while still underperforming when technology shares rise sharply. A high distribution yield should therefore be assessed alongside total return, capital performance and the sustainability of the payments. Would you exchange some growth potential for a higher monthly income? Watch the full episode here: https://www.youtube.com/watch?v=Pj9dk-hy7p4 Figures are approximate and will change over time. For information and education only. This is not investment advice. Capital and income are at risk. #CoveredCallETF #IncomeInvesting #ETFInvesting