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  5. BKCL: I understand that BKCL is a fund of funds having only BKCC as a holding using covered call strategy with some leverage with a higher yield than BKCC. [Global X Enhanced Equal Weight Canadian Banks Covered Call ETF]
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Q: I understand that BKCL is a fund of funds having only BKCC as a holding using covered call strategy with some leverage with a higher yield than BKCC. BKCC is a covered call with no leverage. I am a 77 year old with a diversified value portfolio of individual stocks and ETF's with about 17% of the portfolio in covered call ETF's. I have many of the ETF holdings as individual stocks, blue chips, for the dividends and gains. Please suggest which would be the preferred way to go, BKCL or BKCC.
Asked by STANLEY on February 12, 2024
5i Research Answer:

BKCL uses 1.25X leverage, which can enhance returns and also amplify risks. We cannot provide personal answers, but for an older conservative investor we would consider non-leveraged BKCC better. 

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