2023-03-13 10:38:00 ET
Summary
- The Nuveen Dow 30SM Dynamic Overwrite Fund (DIAX) invests in the Dow Jones Average stocks and trades possible appreciation for higher current yield via their option strategy.
- This article will compare DJIA against what investors get by investing in the SPDR Dow Jones Industrial Average ETF (DIA); the same stocks but no option strategy.
- While providing a higher yield and more downside protection, DIAX is giving up 400bps in return consistently. There are better income-generating equity funds to own: Sell DIAX.
For further details see:
DIAX Vs. DIA: Dow Jones Stocks With Or Without Option Strategy