Invest in High Dividend Yield Strategy with Global X Nasdaq 100 Covered Call ETF
What is a covered call ETF?
A covered call ETF is an exchange-traded fund that buys stocks or other assets and sells covered calls on its positions to generate income.
Covered calls can make a lot of sense with the Nasdaq
In this case, the Global X Nasdaq 100 Covered Call ETF buys the stocks in the Nasdaq 100 index in the same weightings, and then sells covered calls on the index itself.
Benefits and drawbacks to keep in mind
The benefit of using a covered-call ETF like this one is income. On the other hand, the drawbacks include limiting upside potential and fluctuating dividend income over time.
Overall, the Global X Nasdaq 100 Covered Call ETF offers investors a unique opportunity to generate income while gaining exposure to top tech stocks in the Nasdaq index.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.