#covered-call-etfs

#covered-call-etfs

High-yield ETFs have been quite the buzz this year. While covered call ETFs (or premium income, as some are referred to) are really nothing new for the world of passive investors, I do think that many of the swollen yields have attracted investor attention due to the lower (and falling) yields, particularly in the defensive dividend stocks, which have also had decent years. Indeed, there seems to be somewhat less yield going around, and not enough to satiate some of the more aggressive passive income investors out there.

Covered call ETFs, particularly the JEPQ, offer attractive yields for passive income investors, but caution is required due to inherent market risks.