Q: Hi, I notice there are no covered call ETFS in the income portfolio, is there a specific reason for this, and is there any of the many out there that you would consider.
thank you,
James.
thank you,
James.
5i Research Answer:
It has been considered, and there are decent-enough options such as HDIV. When rates were very low, we did set a total return strategy, and capital gains are considered important as well for an overall income portfolio. With higher rates (vs 2020/21) the strategy might change going forward, but as rates peak capital gains may still be important. Covered calls of course enhanced income but may have less gain potential. But we will not rule out adding one, one day.