Covered call ETFs are gaining traction among passive income investors, particularly the JEPQ, which has a notable yield of 11.3%. While they present opportunities for increased income without excessive downside risk, investors must remain vigilant about inherent market dangers. The article emphasizes that no equity investment is risk-free, and while covered call ETFs offer lower volatility, fluctuations in share price and varying monthly income are part of the landscape that investors must navigate. Careful diversification and risk management are crucial for sustainable investing.
Covered call ETFs, particularly the JEPQ, offer attractive yields for passive income investors, but caution is required due to inherent market risks.
Investors should be aware of the risks involved with covered call ETFs like JEPQ. Yield volatility can affect both share prices and monthly income.
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