"Most dividend exchange-traded funds pay out every quarter. For many retirees, this does not align with how they spend money or budget, so it's worth looking into weekly ETFs like Roundhill Magnificent Seven Covered Call ETF (BATS:MAGY ) , and Nicholas Crypto Income ETF (NYSEARCA:BLOX ) . Weekly dividend ETFs are in very few people's bucket lists. They're a rare type of ETF, but they've done outstandingly well in the current environment."
"The ETF buys shares of the while simultaneously selling out-of-the-money call options that use MAGS as the reference asset. The fund sells weekly call options, with strikes reset every Friday to remain responsive to market volatility. The outcome of this strategy is that you're monetizing the volatility through options while getting some exposure. At the same time, you're forfeiting much of the upside while remaining exposed to the downside risk."
"This is mainly because most of these weekly ETFs declined by 20-30% during the spring selloff this year. You'll only stay in the green if 1. the market keeps gaining, or 2. the market never declines to a point where the yield can't offset those losses. The MAGY ETF gets you a dividend yield of 33.4% and carries an expense ratio of 0.99%, or $99 per $10,000."
Weekly dividend ETFs are uncommon but can deliver frequent cash distributions suitable as satellite holdings for income-focused investors. Covered-call weekly ETFs such as MAGY focus on high-profile tech names and sell weekly out-of-the-money call options, resetting strikes each Friday to respond to volatility. That approach monetizes volatility and produces high yields while capping upside and leaving holders exposed to downside declines. Many weekly ETFs fell 20–30% during recent selloffs, so total return depends on continued market gains or yields offsetting losses. MAGY lists a 33.4% yield and a 0.99% expense ratio. YMAG is an actively managed fund-of-funds using synthetic covered-call exposures.
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