The catch with covered call ETFs #shorts
QuotedDataWhy can covered call ETFs lag behind during a strong bull market? These strategies generate income by selling call options over shares held in the portfolio. The option premium can provide a limited cushion when markets decline, but the trade-off is that some of the upside may be surrendered when share prices rise beyond the option’s strike price. Covered call ETFs may therefore be better suited to flat, moderately rising or moderately falling markets than to a powerful equity rally. They can still lose money during a severe market decline. Would you exchange some potential capital growth for additional income? Watch the full episode here: https://www.youtube.com/watch?v=Pj9dk-hy7p4 For information and education only. This is not investment advice. Capital and income are at risk. #QuotedData #CoveredCallETFs #ETFInvesting #IncomeInvesting