Using covered call ETFs can generate income and reduce volatility in uncertain market conditions.

From Zacks Investment Research: 2025-03-14 14:10:21

Covered call strategies involve holding a long position in a stock and selling call options to generate income and provide downside protection during market selloffs. With Wall Street experiencing volatility due to tariff fatigue and recession fears, investing in covered call ETFs like TSPY, QYLD, XYLD, QDTE, and JEPI could be beneficial. These ETFs aim to provide income and reduce volatility by selling options on underlying indexes like the S&P 500 and NASDAQ-100. The ETFs charge fees ranging from 35 to 95 bps and yield annual returns ranging from 7.52% to 43.24%. Consider these ETFs for potential protection and income generation in uncertain market conditions.



Read more at Zacks Investment Research: Tap Covered Call ETFs to Earn Higher Income & Stave Off Volatility – March 14, 2025