Both are investments that follow the performance of an underlying asset, but they differ in some ways. Investing in an exchange-traded fund, for example, is similar to purchasing a fund that holds the underlying asset. Both, like any other investment, come with their own set of risks and rewards.ETFs are growing increasingly lucrative, with $5.85 billion in assets under management as of this year. The number of ETFs has also exploded, with over 8000+ available by the end of last year. By writing options on the ETF’s shares, covered call options provide investors with even more significant revenue.
Insider Monkey takes a look at the 10 monthly dividend covered call ETFs and ETNs you can count on. The Amplify CWP Enhanced Dividend Income ETF invests in equities from a variety of firms. The CBOE S&P 500 BuyWrite Index and the Dow Jones Industrial Average Index will be used to measure the fund’s performance. The Global X NASDAQ 100 Covered Call & Growth ETF has increased by 2.61 percent in the last six months and is up 6.76 percent for the year. The fund invests in stocks of companies in a variety of industries, both directly and through derivatives. The Credit Suisse NASDAQ Silver FLOWS 106 Index is tracked by the fund. On our list of monthly dividend covered call ETFs and ETNs, it ranks eighth. Over the last year, the fund’s price return was -24.37 percent, compared to 33.52 percent for the S&P 500. J.P. Morgan Exchange-Traded Fund Trust – JPMorgan Equity Premium Income ETF invests in high-yielding stocks and socially aware corporations. On the list of monthly dividend covered call ETFs and ETNs, the fund is ranked seventh. The Nationwide Risk-Managed Income ETF aims to provide current income while also protecting against losses. The fund also uses a long/short strategy, constructing its portfolio through derivatives such as options. On the list of monthly dividend covered call ETFs and ETNs, it ranks sixth. For more details, click 10 Monthly Dividend Covered Call ETFs You Can Count On.
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