GOOY: A Poor Way To Extract Dividends From Alphabet Via Options
Summary
- GOOY aims to provide income by synthetically replicating a long Alphabet position using options, but its structure leads to NAV erosion over time.
- The fund's advertised high distribution yield is misleading, as it is not sustainable and comes at the cost of significant capital loss.
- Total return analysis shows GOOY has underperformed GOOG stock dramatically since its inception, failing to mirror Alphabet's strong gains.
- Investors can achieve better results by simply holding GOOG and periodically selling shares for income, avoiding GOOY's complexity and poor performance.
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.
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