Introduction to CovBlock-Sim
CovBlock-Sim is an interactive scenario simulator designed to help investors understand the mechanics and performance characteristics of Covered Call ETFs under various market conditions.
Key Features
Block-based Scenarios
Combine historical annual blocks and specific crisis events (e.g., COVID-19 crash, 2022 Bear Market) to build custom market scenarios.
Comparative Analysis
Compare the performance of the Covered Call ETF against its underlying index (e.g., S&P 500, Nasdaq 100) side-by-side.
Dividend Reinvestment (DRIP)
Toggle dividend reinvestment to see the compounded effect of high yields over your custom timeline.
How to Use CovBlock-Sim
Follow these steps to configure and compare custom market scenarios quickly.
Choose ETF and Initial Capital
In simulator controls, select an ETF and set your initial investment amount.
Add Scenario Blocks
Click annual blocks and special event blocks to build your scenario.
Reorder and Run
Drag selected blocks to adjust order, then run the simulation.
Review Results and DRIP
Compare ETF, underlying index, and dividend reinvestment (DRIP) outcomes together.
Why Simulation Matters
Covered Call ETFs often sacrifice upside potential for high current income. Understanding how these products perform during sharp rallies versus protracted downturns is crucial for setting realistic expectations and building a resilient portfolio.