The risk-and-return profile of most covered call ETFs isn't especially appealing.
For most index investors, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is the default core holding: cheap, liquid, and broadly representative of U.S.
Income-based investors, such as retirees, often avoid high growth investments for (2) reasons: Capital risk due to market volatility Lack of income production The S&P 500 is a perfect example of this.
The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is the default core holding for tens of millions of investors.
As Roberts put it, “What markets are pricing is the impact of that CapEx spending on the economy that generates the earnings.
Roundhill S&P 500 Target 20 Managed Distribution ETF offers S&P 500 exposure via long call options with a 20% managed annual distribution. XPAY's simple structure and high payout suit income-focused investors, but long-term reinvestors are likely better off with SPDR S&P 500 ETF Trust. XPAY distributions are primarily return of capital, providing tax deferral benefits similar to or better than SPY's tax efficiency.
Although the bull case has rarely sounded louder, with one-year gains running hot and the index pressing new highs, Wall Street has a long memory, and that memory is not kind to stretched valuations that meet an inflation regime.
The S&P 500 dividend yield has fallen to 1.08%, a level the index has not seen since the 1800s.
The S&P 500 and a related fund, the SPDR S&P 500 ETF (NYSEARCA:SPY | SPY Price Prediction), have vaulted 28% over the past year, the household ledger sitting beneath that rally on Wall Street tells a far more unsettling story.
Morgan Stanley's Andrew Slimmon, who runs the firm's Global Strategies group, delivered a contrarian message on Barron's Streetwise podcast that cuts against the prevailing wisdom on Wall Street.
The host of Retire SMART Podcast opened Episode 416 with a number that should stop every income-focused retiree in their tracks.
A CNBC commentator delivered the line of the week on the network's market coverage: "Trump has been responsible for the five best and five worst trading days of his second term.