Sat, Aug 2, 2014
A A A
Welcome kbr175@gmail.com
RSS

Commodities Briefing - Categorized | ETFs / ETCs more

Looking for yield? These ETFs have you covered

Posted on 19 March 2013

To enhance yields, three of the Canada’s seven ETF providers, BMO, Horizons and First Asset, have a specialty group of funds that use covered call writing as a fundamental component of their investment strategy. In total, there are 20 ETFs available in Canada that generate income from option premiums.
These covered call funds focus on equities and commodities, with total assets under management of $1.7-billion. In the right environment, the premiums from writing covered calls can add an extra 50 per cent or more to an ETF’s dividend income. The ideal environment involves high volatility, which results in a higher price for the calls being sold………………………………………..Full Article: Source


 Article link

This post was written by:

VRS - who has written 36243 posts on Opalesque Commodities Briefing.


Contact the author

Comments are closed.

August 2014
S M T W T F S
« Jul    
 12
3456789
10111213141516
17181920212223
24252627282930
31