Latest news with #GlobalXNasdaq100CoveredCallETF
Yahoo
29-07-2025
- Business
- Yahoo
U.S. covered call funds attract record inflows as investors seek yield
By Patturaja Murugaboopathy (Reuters) -U.S. covered call funds are drawing robust inflows this year as investors search for higher returns and protection from broader market volatility because of continued tariff risks and geopolitical tensions. According to Morningstar data, U.S. derivative income funds, primarily made up of covered call strategies, attracted a record $31.5 billion in the first half of this year. Till the middle of this month, they secured another $2.5 billion, lifting the total net assets to a record $145 billion, the data showed. Covered call funds generate income by owning stocks and selling call options on them, collecting premiums in return. In choppy markets, like the current one clouded by macroeconomic uncertainty, these options often expire unused, allowing the fund to retain the premium as stock prices typically don't rise enough to trigger a sale. While gains are capped if markets rise sharply, the consistent income stream remains appealing. The JPMorgan Equity Premium Income ETF has offered a 12-month trailing yield of 8.25%, while the JPMorgan Nasdaq Equity Premium Income ETF and the Global X Nasdaq 100 Covered Call ETF yielded 11.5% and 13.9%, respectively, well above the 10-year U.S. Treasury yield of 4.4%. Chad Harmer, founder and chief investment officer of Harmer Wealth Management, said covered call funds have also become more accessible through low-fee ETFs and 401(k) plans. A 401(k) is a U.S. workplace retirement plan that lets individuals invest pre-tax income and continue managing those assets into retirement. The biggest demand is coming from retirees and conservative allocators, as these funds on average pay more than bonds and rise on concerns that broader equity markets may struggle to keep recent gains. "We believe that the substantial rally in recent weeks has already priced in a lot of potential good news, and that investors should prepare for potential market volatility in the weeks ahead,' said Mark Haefele, chief investment officer at UBS Global Wealth Management. Barry Martin, portfolio manager at Shelton Capital Management, said investors are embracing covered call funds not just for cash flow generation, but also to manage portfolio volatility. "It's a powerful shift in how we approach yield and risk management. This year, with the increased volatility, it is especially a good market to sell calls in." (Reporting By Patturaja Murugaboopathy in Bengaluru; editing by Shankar Ramakrishnan and Jan Harvey) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
29-07-2025
- Business
- Reuters
U.S. covered call funds attract record inflows as investors seek yield
July 29 (Reuters) - U.S. covered call funds are drawing robust inflows this year as investors search for higher returns and protection from broader market volatility because of continued tariff risks and geopolitical tensions. According to Morningstar data, U.S. derivative income funds, primarily made up of covered call strategies, attracted a record $31.5 billion in the first half of this year. Till the middle of this month, they secured another $2.5 billion, lifting the total net assets to a record $145 billion, the data showed. Covered call funds generate income by owning stocks and selling call options on them, collecting premiums in return. In choppy markets, like the current one clouded by macroeconomic uncertainty, these options often expire unused, allowing the fund to retain the premium as stock prices typically don't rise enough to trigger a sale. While gains are capped if markets rise sharply, the consistent income stream remains appealing. The JPMorgan Equity Premium Income ETF has offered a 12-month trailing yield of 8.25%, while the JPMorgan Nasdaq Equity Premium Income ETF (JEPQ.O), opens new tab and the Global X Nasdaq 100 Covered Call ETF (QYLD.O), opens new tab yielded 11.5% and 13.9%, respectively, well above the 10-year U.S. Treasury yield of 4.4%. Chad Harmer, founder and chief investment officer of Harmer Wealth Management, said covered call funds have also become more accessible through low-fee ETFs and 401(k) plans. A 401(k) is a U.S. workplace retirement plan that lets individuals invest pre-tax income and continue managing those assets into retirement. The biggest demand is coming from retirees and conservative allocators, as these funds on average pay more than bonds and rise on concerns that broader equity markets may struggle to keep recent gains. "We believe that the substantial rally in recent weeks has already priced in a lot of potential good news, and that investors should prepare for potential market volatility in the weeks ahead,' said Mark Haefele, chief investment officer at UBS Global Wealth Management. Barry Martin, portfolio manager at Shelton Capital Management, said investors are embracing covered call funds not just for cash flow generation, but also to manage portfolio volatility. "It's a powerful shift in how we approach yield and risk management. This year, with the increased volatility, it is especially a good market to sell calls in."
Yahoo
15-05-2025
- Business
- Yahoo
What's Behind the Surge in Options Income ETFs?
Income-hungry investors have been piling into ETFs that use options to deliver juicy dividends. We've seen a surge in launches of these products recently, as providers employ innovative strategies to package derivatives within the ETF structure to meet rising investor demand. In addition to offering high yields, these strategies generally help reduce portfolio volatility. However, investors should remember that there's no free lunch in investing. These products tend to perform best in sideways markets and often underperform during strong bull runs. That said, they can provide some downside protection when stocks fall. Roni Israelov, Senior Quantitative Researcher at Citadel, refers to these strategies as a 'Devil's Bargain.' His research shows that trading options to generate income can undermine long-term investment returns. Our own analysis of the most popular derivatives-backed ETFs also suggests that investors may be leaving significant returns on the table in their pursuit of high income. Nevertheless, these products have attracted substantial inflows this year, as market volatility has shaken investor confidence. The JPMorgan Equity Premium Income ETF JEPI uses proprietary research to select around 130 stocks and writes S&P 500 Index call options to generate income. Its top holdings include NVIDIA (NVDA), Microsoft MSFT, and Meta META. JEPI and its sister fund, the JPMorgan Nasdaq Equity Premium Income ETF JEPQ, are among the top asset gatherers this year. The Amplify CWP Enhanced Dividend Income ETF DIVO aims to deliver high income from both dividends and covered calls. Its managers focus on high-quality large-cap companies with a history of dividend growth and write covered calls on individual stocks. While DIVO has outperformed JEPI, both have significantly lagged the S&P 500 over the long term. JEPQ and the Global X Nasdaq 100 Covered Call ETF QYLD continue to underperform the Nasdaq 100 ETF QQQ. To learn more about these ETFs, please watch the short video above. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Global X Nasdaq 100 Covered Call ETF (QYLD): ETF Research Reports Amplify CWP Enhanced Dividend Income ETF (DIVO): ETF Research Reports JPMorgan Equity Premium Income ETF (JEPI): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report JPMorgan Nasdaq Equity Premium Income ETF (JEPQ): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Int'l Business Times
01-05-2025
- Business
- Int'l Business Times
A 34-Year-Old Redditor Reveals Three ETFs That Earn Him £32K Annually in Dividends
A 34-year-old Redditor offered a glimpse into his annual income from investments on the r/Dividends subreddit in March. The post revealed that his investments across exchange-traded funds and some top stocks earn him £32,141 ($42,505) annually at a 4.32% yield, implying total investments north of £729,508 ($964,756). The screen capture of the person's income stats revealed monthly earnings of £2,678 ($3,541) or £88.06 ($116) daily. Market volatility historically led investors to buy assets like gold and dividend aristocrats for continued income and to limit downsides from selling pressure on the stock market. Industry experts believe the ongoing US tariff-induced market upheaval could be prolonged amid an escalating trade war with China. S&P Global data revealed that S&P High Yield Dividend Aristocrats outperformed the S&P Composite 1500 during market downturns between 31st December 1999 and 31st March 2022. The Redditor Nets £8.5K Monthly, Saves Relentlessly The Redditor with the username r/stfns91 said he nets around £8,500 ($11,241) monthly from salary, dividends, business and capital gains. One of his comments revealed that his net worth is 40% inheritance and 60% savings. He urged Redditors to save relentlessly because there is a huge difference between saving and investing £856 ($1,133) monthly compared to £2,569 ($3,402). 'Needless to say, you need to be able to have a disposable income of 4-5k to arrange such freedom.' He saves and contributes around £6,865 ($9,078) monthly towards his investments. In the near future, the investor hopes to bump his annual passive income to £42,840 ($56,694). Although the Redditor believes 'success in investment is mostly no function of work dedicated towards it,' he recommended everyone to keep fixed costs down 'to necessities' and avoid overspending on variables if they want to create passive income streams to cover their monthly budgets. Overview of His Investment Portfolio In a different comment, the Redittor shared that he invests in the Global X Nasdaq 100 Covered Call ETF (QYLD) with top holdings, including Apple (NASDAQ:AAPL), Nvidia (NASDAQ:NVDA), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN) and Broadcom (NASDAQ:AVGO). The ETF implements a covered call options strategy on the Nasdaq 100 Index, which is essentially buying stocks in the index and selling call options on the acquired stocks to generate monthly income from premiums and create wealth from capital appreciation. His next pick was the Vanguard FTSE All-World High Dividend Yield UCITS ETF (VHYL/VGWD), which focuses on holding companies that pay dividends higher than the average figure. The ETF currently has an annual dividend yield of 3.4% and holds top companies like JPMorgan Chase (NYSE:JPM), Exxon Mobil (NYSE:XOM), Procter & Gamble (NYSE:PG), Johnson & Johnson (NYSE:JNJ), Home Depot (NYSE:HD), Bank of America (NYSE:BAC), Coca-Cola (NYSE:KO), Chevron (NYSE:CVX), among others. The Redditor also invests in the Vanguard FTSE All-World UCITS ETF (VWRL), which holds assets worth over £12.08 billion ($16 billion) across 3,500 large-cap and mid-cap stocks in developed and emerging markets. Around 66% of total holdings comprise US equities. The ETF has consistently paid dividend income on a quarterly basis since its inception over a decade ago and recorded a dividend yield of 1.23% as of 31st March. The German-based investors also picked Amundi MSCI World II UCITS ETF Dist (WLD/WLDD), which has 70% of its holdings in US stocks. The ETF focuses on the Magnificent Seven stocks and companies like Berkshire Hathaway. Its current dividend yield is 1.87%. German telco leader Deutsche Telekom and insurance giant Allianz are also part of the investor's portfolio. He described Telekom as among the 'superb' performers and makes up a 'considerable' part of his portfolio. The telco and the insurer have dividend yields of 2.6% and over 4%, respectively. Disclaimer: Our digital media content is for informational purposes only and not investment advice. Please conduct your own analysis or seek professional advice before investing. Remember, investments are subject to market risks and past performance doesn't indicate future returns. Originally published on IBTimes UK Reddit Microsoft Apple Amazon
Yahoo
13-02-2025
- Business
- Yahoo
'Done With 9-to-5 Grind': Dividend Investor Reaches $5,080/Month, Shares 10 Stocks Fueling His 2026 Retirement Plan
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Dividend stocks have been contributing significantly to market returns over the past several decades. Data shows that from 1998 to 2018, dividend stocks' compound annual return came in at 7.5%, compared with 6.6% for non-dividend stocks. Last year, someone asked dividend investors on Reddit to share their average monthly dividend income. Several income investors shared impressive portfolios and numbers, but one particular comment got our attention. An investor shared his portfolio screenshots that showed he was making about $60,900 a year, or $5,080 per month, in dividend income. His overall yield was 31%, which is extremely high because most of his portfolio consisted of risky covered call ETFs. The investor said after getting frustrated with his daily 9-to-5 job, he decided to take loans and invest into covered call dividend ETFs and plan a retirement path. Don't Miss: Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." BlackRock is calling 2025 the year of alternative assets. "Back in July 2023, I decided I was done with the 9-to-5 grind and really wanted to retire. So, I took out around $104K in loans and invested it into YieldMax ETFs. The dividends are high enough to cover my loan payments, with some extra left over. I use that extra dividend to invest in more stable funds once the loan payments are taken care of." He said so far, his plan is working and he aims to retire by the end of next year. "For now, I'm focused on maximizing compounding to grow my monthly payments. My goal is to retire by the end of 2026, hopefully I'll be debt free and retired in 2027." Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — YieldMax TSLA Option Income Strategy ETF About 25% of the total portfolio of the investor earning $5,080 a month in dividends was allocated to YieldMax TSLA Option Income Strategy ETF (NYSE:TSLY). YieldMax TSLA Option Income Strategy ETF is a popular dividend ETF for income investors seeking high yields. With a distribution rate of 74%, TSLY generates income by selling call options on Tesla (NASDAQ:TSLA) shares. TSLY is down 30% over the past 12 months. YieldMax COIN Option Income Strategy ETF YieldMax COIN Option Income Strategy ETF (NYSE:CONY) makes money by selling call options on Coinbase Global (NASDAQ:COIN). CONY is a risky investment since its upside potential is capped due to the covered call strategy and its performance is linked to a single company operating in the volatile crypto industry. The fund has a distribution rate of 114% and pays monthly. CONY is down 40% over the past 12 months. CONY accounted for about 7.7% of the total portfolio. Global X Nasdaq 100 Covered Call ETF Global X Nasdaq 100 Covered Call ETF (NASDAQ:QYLD) was one of the top holdings of the investor who collected about $5,080 per month in dividend income. It is a notable ETF that earns money by selling covered call options on the Nasdaq-100 Index. The fund was started in 2013 and has since paid monthly income to investors. The fund yields about 12.5%. Some of the top holdings of the ETF are Apple (NASDAQ:AAPL), Nvidia (NASDAQ:NVDA), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), and Broadcom (NASDAQ:AVGO). Over the past year, QYLD is up 3.9%. It had a 7.9% weightage in the portfolio, according to the portfolio screenshots shared by the investor. Trending: , which provides access to a pool of short-term loans backed by residential real estate with just a $100 minimum. Defiance Nasdaq 100 Enhanced Options ETF The Defiance Nasdaq 100 Enhanced Options & 0DTE ETF (NASDAQ:QQQY) provides investors exposure to the Nasdaq 100 Index and generates income by selling call options. It has a distribution rate of 39%. YieldMax NVDA Option Income Strategy ETF YieldMax NVDA Option Income Strategy ETF (NYSE:NVDY) makes money by selling call options on Nvidia (NASDAQ:NVDA). The fund has gained popularity over the past few months amid the rise of Nvidia following the AI boom. The fund has a distribution rate of about 53%. NVDY suits investors who believe in Nvidia's long-term potential but want to hedge against possible declines in the chipmaker's shares. KraneShares KWEB Covered Call Strategy ETF The KraneShares KWEB Covered Call Strategy ETF (NYSE:KLIP) invests in the KraneShares CSI China Internet ETF and generates income by selling call options on the underlying securities. It has a 26% distribution rate and pays monthly. Global X Russell 2000 Covered Call ETF Global X Russell 2000 Covered Call ETF (NYSE:RYLD) made up 5.6% of the total portfolio. The fund generates income by selling call options on the small-cap-heavy Russell 2000 Index. The ETF yields about 13.2%. Being a covered call ETF, RYLD is also not risk-free and often posts losses during down markets. The ETF is now in the limelight as analysts believe small-cap stocks will be among the top beneficiaries of an easing monetary Income Realty Income (NYSE:O) is one of the most popular monthly dividend stocks in the market. In December, the REIT raised its dividend by 0.2%. Main Street Capital Main Street Capital Corp (NYSE:MAIN) is a business development company that raises capital by selling notes and shares to the public, lends money to small – and mid-sized companies and earns interest income. Unlike many other BDCs, Main Street Capital also asks for equity stakes in the companies it lends to. It has a dividend yield of about 6.7%. JPMorgan Nasdaq Equity Premium Income ETF JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ:JEPQ) accounted for about 3.3% of the total portfolio. It's a high-yield covered call ETF that distributes monthly dividend income. The ETF invests in Nasdaq companies and generates extra income by selling call options. Wondering if your investments can get you to a $5,000,000 nest egg? Speak to a financial advisor today. to decide which one is right for you. . With over $1 million in dividends paid out last quarter and a growing selection of properties across various markets, Arrived offers an attractive alternative for investors seeking to build a diversified real estate portfolio. In October 2024, Arrived sold The Centennial, achieving a total return of 34.7% (11.2% average annual returns) for investors. Arrived aims to continue delivering similar value across our portfolio through careful market selection, attentive property management, and thoughtful timing in sales. Looking for fractional real estate investment opportunities? The features the latest offerings. This article 'Done With 9-to-5 Grind': Dividend Investor Reaches $5,080/Month, Shares 10 Stocks Fueling His 2026 Retirement Plan originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
