Investing Experts Covered call ETFs SPYI & GPIX upside + downside
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Aug 20, 2025 Jack Bowman, an insightful analyst specializing in covered call ETFs, dives into SPYI and GPIX. He explores the unique advantages of these ETFs and their mechanics while discussing potential yields between 8% to 12%. The conversation highlights risk management strategies employed by fund managers. Bowman also delves into the taxation of options income, explaining how it can benefit investors. With clear contrasts between SPYI's roll-forward approach and GPIX's dynamic strategy, listeners gain valuable insights into navigating volatile markets.
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Covered-Call ETFs Boost Income But Cap Upside
- SPYI and GPIX buy S&P 500 components and overlay covered-call strategies to generate income.
- That overlay boosts yields to roughly 8–12% but limits upside relative to plain SPY.
Prefer ETF Format To Reduce Options Friction
- Use the ETF format to lower transaction costs and bespoke option terms versus retail trading.
- Expect to pay an expense ratio instead of retail option spreads and commissions.
SPYI Uses Frequent Rolling To Capture More Upside
- SPYI frequently rolls call strikes and can buy long calls to regain upside participation.
- These tactics increase turnover but aim to reduce the long-term upside drag of traditional covered-call funds.