RYLD: Small-Cap Covered Call ETF, 11.0% Dividend Yield, Strong Returns

Summary

  • Covered call funds offer investors strong yields.
  • RYLD is a small-cap covered call ETF, yields 11.0%, and is a buy.
  • An overview of the fund, and of covered call funds more broadly, follows.
  • This idea was discussed in more depth with members of my private investing community, CEF/ETF Income Laboratory. Learn More »

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The Global X Russell 2000 Covered Call ETF (NYSEARCA:RYLD) is an index ETF which invests in the small-cap Russell 2000 index, and sells covered calls on its holdings.

RYLD, as most covered call funds, trades most

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This article was written by

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Juan de la Hoz has worked as a fixed income trader, financial analyst, operations analyst, and as an economics professor. He has experience analyzing, trading, and negotiating fixed-income securities, including bonds, money markets, and interbank trade financing, across markets and currencies. He focuses on dividend, bond, and income funds, with a strong focus on ETFs.

Juan is a contributor to the investing group CEF/ETF Income Laboratory which is led by Stanford Chemist. Features of the service include: managed income portfolios (targeting safe and reliable ~8% yields) making use of high-yield opportunities in the CEF and ETF fund space. These are geared toward both active and passive investors of all experience levels. The vast majority of CEF/ETF Income Laboratory holdings are also monthly-payers, for faster compounding and steady income streams. Other features include 24/7 chat, and trade alerts. Learn More.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

This article was originally published to members of the CEF/ETF Income Laboratory on August 3th, 2021.

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