The Roundhill S&P 500® Target 10 Managed Distribution ETF (“TPAY”) is designed to pay monthly return of capital distributions to shareholders at an annualized rate of ten percent, while providing exposure to the S&P 500®. TPAY is an actively-managed ETF.
TPAY promises a 10% annual distribution while keeping you fully invested in the S&P 500, and it skips the covered-call playbook entirely to do it. But that unconventional approach comes with a…
As a general rule, I expect covered call ETFs to lag the broader market over time. The math is not particularly favorable. You cap your upside, retain most of the downside, pay…
Tony Dong The risk-and-return profile of most covered call ETFs isn’t especially appealing. You cap your upside while retaining most of the downside exposure. On top of that, the distributions investors receive are not…
