Article Of The Week
Two Covered Call ETFs To Preserve Your Wealth
As you know by my name, I love dividends. And in addition to sharing on here, I write regularly in the investment platform- Seeking Alpha.
My goal there is to teach everyday investors about building wealth, so they won’t to need to work to traditional retirement age. I want to help you take control of your life, have F.I.R.E.
And the platform allows writers to share one article once a week free of charge. So, I thought I would share it here with all of you.
Unless you’re new to the investing landscape then you’re likely in the know of the explosive popularity of ETFs in recent years. Moreover, the growing popularity of covered call ETFs, as they’ve changed the dividend investing landscape dramatically.
Essentially, investors can get more bang for their buck!
As someone who planned to sell covered calls (options) against some of my portfolio positions, covered call ETFs eliminate that need. And that’s because they basically do the work for you by selling calls and puts against the underlying assets they own inside their portfolio.
Many covered call ETFs are highly attractive to investors due to their frequent payments and high yields. Some even pay weekly! Most others pay monthly as opposed to quarterly like most dividend ETFs.
If you’re currently retired or looking to retire soon, then covered call ETFs could find their place inside your portfolio.
And ETFs provide instant diversification, so if you’re not an individual stock picker, then you should also consider them. Covered call ETFs are not always great for growing your wealth, but they can help preserve it during times of heightened economic uncertainty & market volatility, like now!
If you’re looking into these funds, here are two for you to consider.
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