Young people are looking for an easier way to accumulate wealth than working a 9-5 job for 40 years. This reluctance to follow the path of their elders has grown the appeal—and assets—of income-generating exchange-traded funds, which can generate anywhere between 2% and 200% yields, sometimes using complex derivatives.
This universe of ETFs has exploded in popularity, with the assets ballooning to $750 billion. And while regular payouts may sound alluring, investors might be prioritizing short-term action over long-term gains.
On this episode of Trillions, Eric Balchunas and Joel Weber speak with Vildana Hajric, a cross-asset reporter with Bloomberg News, about how these income ETFs work, why they appeal to young investors and what to know about their risks.
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