"However, retirees and conservative investors seeking income for living expenses or just as an investment hedge may feel left out - the paltry dividends from pure stock index ETFs are negligible, yet their double digit gains are reliable portfolio asset growth factors that are essential for staying ahead of inflation. The popularity of the ultra high dividend YieldMax ETFs flipped the script and made covered call dividends themselves into a wealth building platform through dividend compounding."
"However, the caveat is that a significant number of them have lost Net Asset Value and some market prices have dropped over 70% from inception. Since 2023, covered call versions of major index ETFs have debuted, and they may very well represent the best of both worlds. With double digit yields combined with 65% or more of the gains of their conventional ETF counterparts, they bear serious consideration from retirees and other income-oriented investors."
"For the past decade, exchange trade funds (ETF) that track major stock exchanges have done very well serving as wealth building platforms for millions of investors. With the S&P 500, the Nasdaq 100, the Russell 2000 and other indexes all delivering solid double digit annual gains, their corresponding ETFs have been at the forefront of countless portfolios, including those owned by investment icons like Warren Buffett."
Exchange-traded funds tracking major stock indexes delivered solid double-digit annual gains over the past decade and served as wealth-building platforms for millions of investors. The S&P 500, Nasdaq 100 and Russell 2000 all produced strong returns that powered corresponding ETFs. Retirees and conservative investors often receive negligible dividends from pure index ETFs, creating an income shortfall despite reliable capital growth. Ultra-high-dividend YieldMax ETFs used covered-call strategies and dividend compounding to provide income, but many lost net asset value and some market prices fell over 70% from inception. Since 2023, covered-call versions of major index ETFs have emerged offering double-digit yields while capturing roughly 65% or more of conventional ETF gains. ProShares S&P 500 High Income ETF (ISPY) is intended to track the S&P 500 Index and competes with common S&P 500 exposures such as VOO or SPY.
Read at 24/7 Wall St.
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