Summary
A representative covered call ETF focused on smoother income and lower volatility. It can lag in strong bull runs, but often provides steadier cash flow through option premiums.
Core Facts
Underlying
U.S. large caps based on S&P 500 (low-vol tilt)
Option Approach
ELN-based OTM covered call
Expense Ratio
0.35%
Launch
2020-05
When It Can Be Useful
Typically more useful in sideways or moderately rising markets with elevated volatility but limited trend strength.
Best Fit
- •Income-focused investors with moderate risk tolerance
- •Lower-volatility U.S. equity exposure
- •Portfolios aiming to increase recurring income
Watch-outs
- •Can underperform broad equities during strong rallies
- •Part of distributions may include return of capital (ROC)
- •Option-overlay behavior must be understood before allocation