RYLD - RYLD: Optically Enticing But Fundamentally Still Weak
2024-04-28 20:56:05 ET
Summary
- In September last year, I issued a bearish piece on RYLD arguing that the ETF is structured in a way that inherently limits alpha potential.
- So far, the investment thesis has played out nicely.
- Yet, given the flight to value and struggling tech names, it might seem that RYLD's prospects have finally improved.
- In this article, I assess these recent dynamics and elaborate on why I still view RYLD a subpar investment choice.
In September 2023, I circulated an article on the Global X Russell 2000 Covered Call ETF ( RYLD ) , which applies a covered call strategy against Russell 2000 Index by going long Vanguard Russell 2000 ETF ( VTWO ) and writing covered calls against the index - VTWO....
RYLD: Optically Enticing, But Fundamentally Still Weak