"The STF Tactical Growth & Income ETF is an actively managed ETF that provides a very solid monthly yield while mitigating downside risk. It uses its own proprietary algorithmic model called the Tactical Unconstrained Growth (TUG) Model to do this. The fund invests across three main asset categories: U.S. equity securities or ETFs that replicate the NASDAQ-100 Index, long-duration U.S. Treasury securities, and short-term Treasury bills or cash equivalents."
"It has an income overlay strategy by using a call spread options strategy on the NASDAQ-100 Index (NDX) with one-month expirations. This adds another 1% in monthly yield. There's another ETF with the ticker TUG if you don't like your ETFs using options. This model makes use of the stock market's upside when the broader market is bullish. And when the market turns bearish, the fund tilts more towards treasuries to keep downside risk low."
Monthly dividend ETFs can generate significant recurring income and compound returns if dividends are reinvested. The STF Tactical Growth & Income ETF (TUGN) uses the Tactical Unconstrained Growth (TUG) algorithm to allocate among NASDAQ-100 equity exposures, long-duration U.S. Treasuries, and short-term Treasuries or cash equivalents. TUGN overlays a one-month call spread on the NASDAQ-100 to add about 1% monthly yield, yielding 10.96% with a 0.65% expense ratio. Building a $5,000 monthly income requires time and portfolio scale, with smaller holdings gradually covering bills as dividends grow. Covered-call and alternative income ETFs offer similar income-focused strategies.
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