XYLD / XYLD: Why Covered Calls On The S&P 500 Is A Bad Strategy

The Global X S&P 500 Covered Call ETF is a covered call fund focused on the S&P 500 selling at-the-money call options with a dividend yield of 11.24%. more_horizontal

The S&P 500 has declined, and there is no reprieve in the economic tightening cycle. Yields on risk-free assets have increased, impacting traditional more_horizontal

The Global X S&P 500 Covered Call ETF possesses a few overlooked factors. Our analysis shows that much of the vehicle's returns derive from option pre more_horizontal

Covered call ETFs like XYLD offer attractive yields for income-seeking investors, but have underperformed the broader market over the past ten years. more_horizontal

The Global X S&P 500 Covered Call ETF is structured to replicate a covered call option strategy on the underlying S&P 500 Index. We explore the cover more_horizontal

In the days leading up to the holiday weekend, it was fairly quiet in the ETF industry. The most remarkable development in the space was BlackRock's l more_horizontal

XYLD recently saw its dividend get reduced. The fund's forward yield drops from 12% to 8%. more_horizontal

XYLD yields ~11% and pays a variable monthly distribution. The XYLD ETF uses Covered Calls on the S&P 500 to generate monthly income and offers some d more_horizontal