Article of the Week
"I Just Added This Covered Call ETF To My Portfolio"
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 like to share them with all my current & future subscribers. (see below).
Recently, my girlfriend and I starting building an all income portfolio focused on generating income. As a result, I’ve also been tilting my main portfolio more towards high growth.
Our new portfolio will consist primarily of covered call ETFs, BDCs, and REITs. Doing this will not give me a lot of capital appreciation. However, my goal is to generate steady & reliable income with the portfolio.
My motto still remains the same, “quality over quantity.”
With the plethora of new covered call ETFs hitting the market, it’s easy to fall into a trap buying these low-quality funds with extremely high yields. For me, my goal is to never chase money as this is a short-term strategy that typically never works out.
Chasing high yields looks good on paper, but buying low-quality funds (YieldMax) leads to capital erosion over time.
And to paraphrase Warren Buffett: this is not investing, it’s speculating.
But like anything, there’s quality and low quality. And it’s up to you as an investors to know the difference.
In this week’s article of the week I explain why I consider the covered call ETF to be high quality and why I added them to my portfolio.
Happy Investing!
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