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flag Retail investors pour $35B into covered call ETFs, drawn by high yields but warned over fees and limited growth.

flag Covered call ETFs are drawing record interest from retail investors seeking higher yields, with over $35 billion invested across 17 Canadian providers by September 2025. flag These funds generate income by holding dividend stocks and selling call options, boosting near-term returns but limiting long-term gains, especially in rising markets. flag Experts warn they often carry fees up to ten times higher than standard ETFs, reducing total returns. flag While they may benefit income-focused investors like retirees in low-yield environments, they are not recommended as core holdings due to reduced upside and higher costs. flag Investors are urged to prioritize total return and fees over high yield claims.

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