JEPI - Reviewing 8-10% Yield Covered Calls And Equity Funds ETFs - Are They Worth Your Money?

• There are dozens of CEFs, ETFs, and mutual funds that employ covered call strategies - owning stocks or indexes and then selling call options against them to create income.
• Covered call funds have most of the downside risk of stocks but the upside of bonds is what an old mentor once told me. This is not necessarily true though.
• In reality, a covered call strategy only works in a limited number of environments - sideways markets. And the fact is that we haven't had one of those in some time.
• Don't expect these to outperform the markets. But that is not their goal. Their goal is to provide income, a lower beta, and diversification benefits to your bond portfolio.
• Instead, for those looking for more yield from their equity investments but less risk, focus on 'collared strategies', which are covered calls with a protective put to reduce downside risk.

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