JEPI - Derivative Income Strategies Are Not Worth The Trouble
2024-06-03 11:49:28 ET
Summary
- Derivative income investment strategies have grown in popularity, with the space now valued at over $80 billion.
- Research suggests that derivative income strategies have not been efficient in reducing risk.
- These strategies underperform simple benchmarks and have tax inefficiencies, making them less attractive for investors.
Over the past ten years, derivative income investment strategies have exploded in popularity. These strategies typically overlay options upon an underlying equity position. Income is generated through covered call writing in an effort to enhance stock market returns....
Derivative Income Strategies Are Not Worth The Trouble