U.S. Covered Call ETFs Deliver Yields Over 11 Percent as Volatility Drives Investor Demand

Covered call ETFs are increasingly popular for generating high yields with lower risk. They achieve this by selling out-of-the-money call options on owned stocks, which can produce consistent income, particularly when markets decline. The JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) stands out with an 11.23% yield, investing mainly in tech stocks and enhancing returns via covered calls. Yields may vary as market conditions change, and while such ETFs could be beneficial during volatility, they come with trade-offs, like missing out on gains in rising markets.

Covered call ETFs offer investors a way to generate high yields with reduced risk by selling out-of-the-money call options on owned stocks, providing consistent income even amidst market declines.

The JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) offers an impressive 11.23% yield by investing in Nasdaq 100 stocks and enhancing returns through covered calls, despite missing out on potential stock gains.

Read at 24/7 Wall St.