Wealthy Living

The Best 6 High Yield Covered Call ETFs To Check Now

Income investors looking for a steady stream of dividend payments may want to consider covered call ETFs. These funds offer the potential for income generation through the sale of call options on underlying holdings.

This type of asset can work particularly well in a market that’s rising, as it allows investors to benefit from the market’s gains while also collecting premium income.

Investing in a covered calls typically helps mitigate the risk associated with owning stocks outright, while still allowing investors to generate income from their portfolios.

There are a number of covered call ETFs available today. For those looking for new ways to protect their retirement funds or simply seeking an income-generating strategy, we’ve compiled six of the best covered call ETFs on the market.

6. Invesco S&P 500 BuyWrite ETF (PBP)

The Invesco S&P 500 BuyWrite ETF (PBP) is one of the most popular covered call ETFs on the market.

The buyer of the covered call has the right (not obligation) to purchase the underlying shares from the investor at the option strike price anytime up through the option expiration date.

The fund has a solid track record and for those investors looking for capital preservation in their investment portfolio, PBP may be the right covered call ETF.

5. Amplify CWP Enhanced Dividend Income ETF (DIVO)

The Amplify CWP Enhanced Dividend Income ETF (DIVO) is a high-yield covered call ETF that seeks to provide investors with high income and capital appreciation.

The ETF focuses on generating high returns through a strategy of selling call options on stocks or other securities while also holding a portfolio of underlying assets.

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