The fund is targeted at income investors looking to keep their broad equity market exposure while enjoying current income generation. The fund invests at least 80% of its assets in dividend-paying large-cap securities, but that's where the similarity to traditional dividend funds ends. The fund writes call options on its equity holdings to generate additional premium income.
ETF issuance is profitable for Wall Street, leading to an overwhelming number of ETFs that may not serve investors' best interests. Avoid ETFs with less than $100 million in assets due to inadequate liquidity and higher trading costs. Invest in ETFs with total annual costs below 0.49% to ensure low fees; high fees don't guarantee quality.