Never touch any ETF that use covered call strategy
There is a very simple reason for this, any covered call ETF will "always 100%" underperform the underline stock on which it writes covered call. If you were to buy a covered call ETF, you might as well buy the stock directly.
Take NVDY as example, it is a covered call ETF on NVDA. Yes, you might think its current yield of 63% looks unreal, but that is because NVDA has had a huge run up. If you plot NVDY and NVDA on the same chart, you will see
1: NVDY's overall return is signficantly lower than NVDA
2: Whenever NVDA drops, NVDY also drops, and therefore offers no real protection on the downside risk.
Net net, you are better off to buy NVDA directly if you want to buy NVDY. You can plot "any covered call ETF" against its stock and you will see this behavior 100% of time.
这种年分红接近100%了，一年就回本了，股价也就20左右，能亏到哪去呢？
股价也跟着正股波动，涨跌幅度差不多吧
是不是too good to be true ?
There is a very simple reason for this, any covered call ETF will "always 100%" underperform the underline stock on which it writes covered call. If you were to buy a covered call ETF, you might as well buy the stock directly.
Take NVDY as example, it is a covered call ETF on NVDA. Yes, you might think its current yield of 63% looks unreal, but that is because NVDA has had a huge run up. If you plot NVDY and NVDA on the same chart, you will see
1: NVDY's overall return is signficantly lower than NVDA
2: Whenever NVDA drops, NVDY also drops, and therefore offers no real protection on the downside risk.
Net net, you are better off to buy NVDA directly if you want to buy NVDY. You can plot "any covered call ETF" against its stock and you will see this behavior 100% of time.
So, never touch any covered call ETF
比如正股一年涨了10%20%，这种ETF拿分红能拿50%？
Even more important, you dont know which stock will 爆涨 or 震荡. If you know that consistently, you would be a multi-billionare by now :)
This is an absolute no-go
涨太快跟不上 ，小跌有保护，大跌保护作用不大。所以，用这个strategy的ETF选股有讲究。我自己有JEPI，看了它的持股和SP500的差别很大，表现是大涨的年份远远不如index，跌的年份2022相当不错。我接近退休，需要分红，目前还满意。但也观察着。
我更愿意和schd比。。。当然，JEPI历史比schd短，还没法比。。。
另外，投资不纯粹是return，还有自己的实际需要。我到了考虑现金流的年龄，也考虑自己的portfolio起伏小一些更合适。对年轻人，我肯定不会鼓买JEPI。。。
However, the end result is that it underperforms SPY on 1Y, 3Y, and 5Y total return consistently, by pretty significant margin