Sentences with phrase «covered call etfs»

This week, we'll take a closer look at ZWB and a clutch of covered call ETFs from Horizons AlphaPro.

Let's hope the Canadian covered call etfs are as interesting.

What's interesting with these US covered call etfs, except for PBP, is the fact that their dividends were reduced a bit but stayed in the 8 - 9 % range up to today.

@Viscount: To add to my comment, Sharpe ratio may not be a good measure of the risk of covered call ETFs because the distribution of returns is not normal.

Participants will learn about the different covered call ETFs offered and how these can be implemented in their portfolio.

@Sampson: I agree that covered call ETFs aren't that bad when held in tax deferred accounts or even when an investor needs the income.

As for the covered call ETFS, to date, Horizons, BMO, and First Asset offer a variety of ETFs that implement this strategy.

According to Eden Rahim, portfolio manager for the AlphaPro Covered Call ETFs, short - dated covered calls are written with a dynamic strike price based on the volatility.

Other Resources: In a recent column, Rob Carrick urged investors to pay more attention to covered call ETFs than just their high distributions.

The key attraction of covered call ETFs is the ability to generate income from a portfolio of stocks.

Also, it should be noted that operating expenses of covered call ETFs will be higher compared to index ETFs due to higher turnover.

Supposing that you have significant amounts of investment capital, or access to low - cost option trades, one should manage to beat both the S&P 500 index as well as the covered call ETFs and ETNs based on the index.

Low fees - Covered call ETFs have low fees compared to other active strategies.

For investors who still wish to use this strategy while not owning the underlying stock, there exists a solution: Covered Call ETFs.

Investors hunting for income can use covered call ETFs to boost their income - this is ideal for passive income investors who rely on either dividends or income raised via premiums from writing options.

Mitigated risk - Covered call ETFs generally speaking, due to the nature of ETFs, are diversified.

While they're designed to provide income, covered call ETFs do have risks.

I'm not really a fan of the covered call ETFs, either.

Horizons launched a whole slew of covered call ETFs last year of which the Horizons Enhanced Income Equity ETF (HEX) turned out to be the most popular.

But as the past year has shown, covered call ETFs can lag during falling markets if there is a lot of volatility.

Fustey is concerned investors flocking to covered call ETFs may simply be chasing yield.

I didn't write anything about the launch of XTF Capital at the time, because their first lineup of products was a series of covered call ETFs and a convertible bond ETF that have little or no relevance to Couch Potato investors.

@Mike: I have an upcoming post on returns covered call ETFs have provided in the US compared to benchmarks.

When covered call ETFs arrived, their timing was perfect.

True, both the covered call ETFs have slightly lower volatility than the plain versions but not enough to be meaningful.

A: First Asset Tech Giants Covered Call ETF (CAD Hedged), $ 17.95, symbol TXF on Toronto (Units outstanding: 6.1 million; Market cap: $ 109.5 million; www.firstasset.com), invests in what it sees as the biggest and most innovative U.S. technology companies.

A: First Asset Tech Giants Covered Call ETF (CAD Hedged), $ 14.97, symbol TXF on Toronto (Units outstanding: 6.1 million; Market cap: $ 91.3 million; www.firstasset.com), invests in what it sees as some of the largest and most innovative U.S. technology companies.

Also, the income an investor receives from the covered call ETF has been dropping: the fund started off with an annualized yield of 10 percent but two years later, the yield is just 5.6 percent.

We find that the Covered Call ETF under performs the Bank ETF by an annualized 0.82 percent over a two year period even though it is just 0.10 percent more expensive than the plain - vanilla ETF.

To be fair, 2011 was not the kind of year that would have lead to outperformance by a covered call ETF, so the sample might be too small to conclude that the fund will always underperform.

For a more defensive way to play large - cap tech, he suggests the First Asset Tech Giants Covered Call ETF (CAD - hedged), ticker TXF.

Reference ETF: The BMO Canadian High Dividend Covered Call ETF is designed to provide exposure to a dividend focused portfolio, while earning call option premiums.

Every single covered call ETF listed in the US have similar or lower total returns than buy - and - hold and every single one of them have made distributions at the expense of future capital gains.

Not exact matches

Another is the BMO Covered Call Bank ETF (ZWB / TSX), which, conveniently, has a comparable, uncovered companion, the BMO S&P / TSX Equal Bank Index ETF (ZEB / TSX).

The growing popularity of ETFs is also threatening so - called 12b - 1 fees that mutual funds charge to cover sales and marketing costs, the WSJ reports.

BMOAM also built a comprehensive lineup of ETFs that use covered - call strategies.

The firm has almost $ 6 billion in total ETF AUM held in covered - call strategies.

They are covered call Canadian ETF.

The Cambria Covered Call Strategy ETF will be actively managed and invest primarily in other funds, including ETFs, exchange - traded notes and closed - end funds.

However, all of the available covered - call ETFs are index - based and are not actively managed.

The first thing we want to do is eliminate leveraged ETFs from the 79,062 covered calls.

The number of covered calls offered is less for weekly options than for monthly options because not all underlying stocks and ETFs trade weekly options.

When the ETF finishes above the strike price (for example, you wrote a $ 75 covered call and the ETF closes at $ 78 on its last trading day), the person who owns the long call will exercise his or her right to buy your stock ETF at $ 75 per share, which forces you to sell it with an options assignment.

Writing covered calls is a time honored way to increase yield from stocks and ETFs you already own.

You can sell covered calls on VANECK VECTORS GOLD MINERS ETF to lower risk and earn monthly income.

Quick review (if you need a longer explaination, see the covered call tutorial): (1) you need 100 shares of stock or ETF, (2) you then sell 1 call option (because options control 100 shares) against the stock / ETF you own, and then (3) at expiration you may end up having your stock called away (and receive cash) or you may end up owning your stock and having the call option expire worthless (in which case you can sell another call for the next cycle).

You can sell covered calls on VANECK VECTORS STEEL ETF to lower risk and earn monthly income.

On the other hand, if you're an income - oriented investor using a non-registered account, the argument for using the BMO Covered Call Canadian Banks ETF is stronger.

The other new product, however, is unique in Canada: the BMO Covered Call Canadian Banks ETF (ZWB) holds shares in the Big Six banks and sells call options on these stocks to generate additional incCall Canadian Banks ETF (ZWB) holds shares in the Big Six banks and sells call options on these stocks to generate additional inccall options on these stocks to generate additional income.

(The BMO Covered Call Canadian Banks ETF has attracted an astounding $ 758 million in its first 18 months.)