Q: Curious what your thoughts are on PYF for some income? Also, how is it taxed in a registered account? How are ROC and option income taxed?
5i Research Answer:
The ETF writes puts and calls to generate income for the portfolio while aiming for some capital appreciation on the underlying holdings. The yield is in the 7% range and the MER is 0.60% (0.89% total expense ratio). The actual equity exposure is just around 20%, so it is really for an investor looking for option income.
The majority of distributions have been return of capital in the past with a portion being capital gains distributions.