7
- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
10-year returns of covered call ETFs vs the overall market
Posted on 9/14/26 at 10:38 am
Posted on 9/14/26 at 10:38 am
in all cases, for those ETFs that have a ten year track record, you’d have been better off in QQQ or SPY. So I assume (since these are so popular), investors are not holding these positions for the long term?
This post was edited on 9/14/26 at 10:39 am
Posted on 9/14/26 at 10:57 am to cgrand
Does this take into account the payout, or just the stock price?
Posted on 9/14/26 at 11:31 am to cgrand
I don’t think the popular ones were available 10 years ago. Most have popped up in the past couple years, and I think I’ve yet to see one that even matches the underlying index. The 0DTE ones seem to come the closest to matching returns.
I had high hopes for the precious metals since it seemed logical to attempt to get some kind of income from a metal or the MLP cc’s since you could avoid K1s on something that’s already dividend rich. But they seem to perform the worst of the bunch.
I guess the remaining argument in their favor is a flat market for an extended time, but I have my doubts considering their underperformance in every other scenario.
I had high hopes for the precious metals since it seemed logical to attempt to get some kind of income from a metal or the MLP cc’s since you could avoid K1s on something that’s already dividend rich. But they seem to perform the worst of the bunch.
I guess the remaining argument in their favor is a flat market for an extended time, but I have my doubts considering their underperformance in every other scenario.
Posted on 9/14/26 at 11:41 am to Suntiger
It says "total return", so I assume that includes the distributions.
Posted on 9/14/26 at 11:46 am to cgrand
I have a minor position as a hedge. It is hopefully a steady return in a sideways market.
Posted on 9/14/26 at 12:17 pm to Suntiger
quote:assumes reinvestment of all dividends
Does this take into account the payout, or just the stock price?
Posted on 9/14/26 at 12:41 pm to Finnish
quote:I can see that as a strategy but I don’t think that’s the case for most people especially inexperienced people. I see these things being aggressively promoted all over fintwit for example, and especially egregious is the push to use the levered ETFs to establish a position in a particular stock…like that’s the only/best way to invest
I have a minor position as a hedge
to me these should be 30-45 day trades and even then to try to beat the indexes you have to trade all the time and get very lucky
This post was edited on 9/14/26 at 12:42 pm
Posted on 9/14/26 at 1:03 pm to cgrand
Tidal throws a lot of money around in unconventional ways to make demand appear organic. They actively recruit low level wannabe influencers with partnerships and free trips.
The result are hundreds if not thousands of people on social media amplifying word of mouth. The brilliance of the tactic is nobody really associates someone with 3000 YouTube followers as an influencer. Yet that’s really all it takes to get a free trips to the Caribbean or an invite to ring the Nasdaq bell. Then that group gets together and start collaborating together online propelling the process.
The result are hundreds if not thousands of people on social media amplifying word of mouth. The brilliance of the tactic is nobody really associates someone with 3000 YouTube followers as an influencer. Yet that’s really all it takes to get a free trips to the Caribbean or an invite to ring the Nasdaq bell. Then that group gets together and start collaborating together online propelling the process.
Posted on 9/14/26 at 1:48 pm to lsuconnman
but that’s the kind of thing I would expect anyone with average intelligence to see right through. I guess greed and short attention span are the culprit
assume you are the product and then find reasons to proceed anyway
assume you are the product and then find reasons to proceed anyway
Posted on 9/14/26 at 1:59 pm to cgrand
quote:Covered call strategies are dumb - at least price-insensitive ones. You shouldn't sell options unless you think vol is high.
in all cases, for those ETFs that have a ten year track record, you’d have been better off in QQQ or SPY. So I assume (since these are so popular), investors are not holding these positions for the long term?
Posted on 9/14/26 at 3:20 pm to cgrand
Alpha and Sharpe Ratios according to Morningstar:
Ticker; 3 Year, 10 Year Alpha; 3 Year, 10 Year Sharpe Ratio
PBP 1.84, -2.44; 1.23, 0.5
VEGA -1.78, -3.5; 0.95, 0.51
XYLD 1.58, -2.04; 1.19, 0.57
QYLD 2.7, -0.56; 1.26, 0.69
FTHI 0.13, -2.7; 1.14, 0.54
FTQI 0.95, -1.76; 1.22, 0.56
In other words, all but VEGA have done well in the past 3 years but have done quite poorly over the past 10.
Ticker; 3 Year, 10 Year Alpha; 3 Year, 10 Year Sharpe Ratio
PBP 1.84, -2.44; 1.23, 0.5
VEGA -1.78, -3.5; 0.95, 0.51
XYLD 1.58, -2.04; 1.19, 0.57
QYLD 2.7, -0.56; 1.26, 0.69
FTHI 0.13, -2.7; 1.14, 0.54
FTQI 0.95, -1.76; 1.22, 0.56
In other words, all but VEGA have done well in the past 3 years but have done quite poorly over the past 10.
Posted on 9/14/26 at 6:33 pm to cgrand
The market is up more than it’s down. Covered call ETFs should never outperform over a long period of time. They’re literally not supposed to outperform. You’re selling the stock as it increases in value. That means you miss some of the upside. Then they buy the stock and sell a new call at a higher price.
It’s wild how many people invest in something because of the “yield” and don’t understand how it works. I’m not saying that’s what you do, but that’s what a lot of people are doing.
They have a place for certain investors but not someone looking to keep pace with the market.
It’s wild how many people invest in something because of the “yield” and don’t understand how it works. I’m not saying that’s what you do, but that’s what a lot of people are doing.
They have a place for certain investors but not someone looking to keep pace with the market.
Posted on 9/14/26 at 6:58 pm to TX_Tiger23
I sell covered calls on some of my positions, and have had great success, but would never buy a CC ETF
Posted on 9/14/26 at 7:14 pm to CecilShortsHisPants
Same and I don’t have a problem with covered call ETFs. It just doesn’t make sense to think they could or should outperform unless it’s a down or sideways market…that’s it.
Posted on 9/14/26 at 7:35 pm to TX_Tiger23
The only CC that really bit me recently is CAKE. I got in at $37 and lost them at $70. It’s over $100 now, but frick it. I made my money.
Posted on 9/15/26 at 6:31 pm to CecilShortsHisPants
heres a couple of ETFs that get mentioned a lot JEPI and JEPQ
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News