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.

So, never touch any covered call ETF

所有跟帖： 

• 暴漲的時候不如正股，震蕩期或者緩升期是不是比正股好？ -xebbk- ♀ (72 bytes) () 08/10/2024 postreply 21:24:22

• 觀察它家的Tsly 的效果，時間長些，的確上麵回帖所言 -start2020- ♀ (0 bytes) () 08/10/2024 postreply 21:27:32

• Statistically, all covered ETF underperform its stock -三心三意- ♂ (198 bytes) () 08/10/2024 postreply 21:29:12

• 怎麽知道它是covered call strategy. 主動報告嗎？ -julie116- ♀ (0 bytes) () 08/10/2024 postreply 21:33:05

• 它家的產品每天網站上發布交易 -start2020- ♀ (0 bytes) () 08/10/2024 postreply 21:35:04

• Can't help every step. Just Google it and you will see -三心三意- ♂ (0 bytes) () 08/10/2024 postreply 21:35:56

• Google "is NVDY a covered call ETF"?" -三心三意- ♂ (0 bytes) () 08/10/2024 postreply 21:36:48