QYLD - FEPI: Making It Rain Dividends With A Covered Call ETF

2024-06-04 21:07:27 ET

Summary

• REX FANG & Innovation Equity Premium Income ETF offers a high dividend yield of around 25% and monthly distributions, making it appealing for income-focused investors.
• FEPI uses a strategy of writing covered calls on its holdings in the tech sector to generate income and provide capital appreciation.
• The fund has outperformed peer covered call ETFs, such as QYLD, due to the fact that options are written out of the money.
• FEPI's strategy benefits from higher levels of volatility. With the upcoming US elections, interest rates, and high inflation, I believe there will be lots of market uncertainty that will increase volatility.

Overview

This is one of the best times in modern history to be an income focused investor. There are so many different tools and sorts of fund at your disposal that allow you to tweak your income as desired. You can craft your portfolio to take on as much risk as you'd like, focus on a specific industry if you please, or even receive your distributions on a monthly basis. REX FANG & Innovation Equity Premium Income ETF ( FEPI ) is one of the latest ETFs to be created that rewards shareholders with an exceptionally high dividend yield. FEPI has a very recent inception date of October 2023....

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