XYLG - XYLG: Another S&P 500 Covered Call ETF But With A Twist
- The S&P 500 Covered Call & Growth ETF name hints at the twist. The index used does too: CBOE S&P 500 Half BuyWrite Index.
- With the Index being critical to understanding how XYLG differs from its competitors, the Index is covered in detail and its performance versus the full BuyWrite Index is provided.
- The article compares XYLG against XYLD, which covers 100% of its AUM and DIVO, an enhanced-income ETF that uses Call options and invests in a subset of S&P 500 stocks.
- While history is short and no major pullback has occurred, for investors looking for 4% yield and willing to give up some appreciation, I would rate XYLG as Bullish.
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XYLG: Another S&P 500 Covered Call ETF But With A Twist