RYLD yields 12%, IWM 1.1%: which is the better Russel 2000 ETF?
Small cap companies have underperformed their large-cap peers in the past few years as most of them have struggled in a high-interest-rate environment. For example, the S&P 500 index and the Nasdaq 100 have had total returns of over 72% in the last five years, while the Russell 2000 index has returned 57.
RYLD: I'd Rather Prefer Small-Caps Without The Covered Call Overlay
Covered call strategies, like Global X Russell 2000 Covered Call ETF, offer high yields and potential downside protection but may underperform in strong markets. RYLD aims to match the Cboe Russell 2000 BuyWrite Index by buying the Global X Russell 2000 ETF and selling call options on it. Despite its high yield, RYLD has underperformed the iShares Russell 2000 ETF in total returns, though this trend may change with market behavior.
RYLD: 2 Alternatives To 12.3% Yielding Covered Call Fund
RYLD has dropped over the last 7 months. Total return has done better, but the fund has only returned about 3.1% annually since inception. We go over why and tell you how we are making income while dodging this one.
