Vanguard Russell 2000 ETF

Super Micro Computer

Light & Wonder Inc

Rambus

Simpson Manufacturing

Onto Innovation

BellRing Brands Inc

Matador Resources

Comfort Systems USA

Universal Forest Products

Global X Russell 2000 Covered Call ETF

RYLD tracks a market-cap selected and weighted index along with call options for the underlying index.

From a technical and tax view, covered call ETFs, such as RYLD, do not pay actual dividends but distribute capital back to investors. RYLD often attracts unsuitable investors looking for long-term income strategies, with some forgetting initial capital investments will eventually be lost without dividend reinvestment. Using RYLD as an income strategy is similar to an insurance provider using premiums as personal income, instead of saving for inevitable claims and settlements.

RYLD: Possibly The Worst 'High Dividend' Fund For Retired Investors Today

RYLD, a covered call writing fund, has performed poorly and has a sub 2% annual total return since inception. We explain why that has happened and why the odds of meeting the current yield without NAV depletion is virtually zero. We go over why RVT is a better choice for yield seekers.

RVT's 8.3% Yield Beats RYLD's 15.5%

Amplify CWP Dividend & Option Income ETF

JPMorgan Equity Premium Income ETF

JPMorgan Nasdaq Equity Premium Income ETF

WisdomTree CBOE S&P 500 PutWrite Strategy Fund

Global X NASDAQ 100 Covered Call ETF

iShares 20+ Year Treasury Bond BuyWrite Strategy ETF

In a quest for higher yields amid increased volatility in the stock market, investors are flocking to ETFs utilizing covered-call strategies, resulting in a notable uptick in fund inflows.

A Guide to Covered Call ETFs

Covered Call ETFs: A High-Yield Income Strategy for Investors

Global X Russell 2000 Covered Call ETF is a covered call exchange-traded fund that focuses on small cap stocks and employs an at-the-money buy write strategy with a dividend yield of 13.77%. When considering total returns compared to inflation, RYLD has not kept up with inflation since its inception in 2019. RYLD may not be a sustainable income investment for those living off the income for mid-long periods of time.

RYLD: Inflation First, Dividends Second

The Global X Russell 2000 Covered Call ETF applies a covered call strategy against the Russell 2000 Index and Vanguard Russell 2000 ETF. RYLD has a low net fee expense ratio of 0.6% and holds about 2000 companies, with the largest exposure being VTWO at 34% of the portfolio. Since its inception, RYLD has underperformed the Russell 2000 and other covered call strategy ETFs, which track popular indices.

RYLD: The History Has Shown That The Structure Does Not Function

Many income investors are familiar with Global X Russell 2000 Covered Call ETF and Global X NASDAQ 100 Covered Call ETF. Both funds currently provide ~12% dividend yields, paid monthly. This article will analyze why such yields are not as attractive as they appear on the surface.

QYLD Or RYLD? There's A Better Idea

Aptus Collared Income Opportunity ETF

Global X S&P 500 Covered Call ETF

investors are looking for investments that provide capital appreciation opportunities in the equity world but at the same time offer downside protection. A lucrative option for now could be the Buy-Write strategy.

Time to Bet on Buy-Write ETFs

Ares Capital

BlackRock Science & Technology

Crescent Capital BDC Inc

Calamos Dynamic Convertible & Income Fund

Calamos Global Total Return Fund

Eaton Vance Enhanced Equity Income Fund II

Eaton Vance Tax Advantaged Global Dividend Opportunities Fund

Eaton Vance Tax-Advantaged Dividend Income Fund

Guggenheim Strategic Opportunities Fund

John Hancock Tax-Advantaged Dividend Income Fund

PIMCO Corporate & Income Strategy Fund

PIMCO Dynamic Income Fund

John Hancock Premium Dividend Fund

PIMCO Corporate & Income Opportunity Fund

Cohen & Steers Quality Income Realty Fund

Royce Value Trust

Special Opportunities Fund Inc

Credit Suisse X-Links Crude Oil Shares Covered Call ETN

Cohen & Steers Infrastructure Fund Inc

Reaves Utility Income Fund

XAI Octagon Floating Rate & Alternative Income Term Trust

Perfection is defined as being complete and correct in every way, and can be pursued in various fields, including art and investing. For years now, I have been employing all my strength in investing in CEFs and ETFs, plus some “flirtations” with ETNs and BDCs. My portfolio is certainly not perfect, but acceptably fulfills the task for which it was designed: namely, to provide me with a steady stream of dividends over time.

My 9% Income Portfolio - Nobody Is Perfect

RYLD's covered call strategy offers statistical benefits and an appealing distribution schedule but faces challenges in the current economy. The nature of its underlying index manifests a challenging climate for RYLD in spite of its healthy option premiums, 2.7% monthly over the past year. Despite those healthy option premiums, RYLD's total return warrants a Sell rating, regardless of distribution level.

RYLD: A Clearer View

The Global X Russell 2000 Covered Call ETF (RYLD) seeks to generate income by selling at-the-money covered calls on tickers in the Russel 2000. Their variable distributions are currently paying a trailing yield of 11.36%; portions of which can be paid out as Return Of Capital. The fund mitigates some of its long-term NAV erosion by retaining a portion of the premium collected.

RYLD: Low NAV Erosion And Occasional Tax Benefits

iShares Core Dividend Growth ETF

iShares Select Dividend ETF

Schwab Fundamental U.S. Large Company Index ETF

First Trust Value Line Dividend Index Fund

CBOE Vest S&P 500 Dividend Aristocrats Target Income ETF

ProShares S&P 500 Dividend Aristocrats ETF

Schwab US Dividend Equity ETF

SPDR S&P Dividend ETF

Vanguard Dividend Appreciation ETF

Vanguard High Dividend Yield ETF

KNG employs a buy/write strategy quite successfully, considering the small opportunity cost in relation to market total returns and the decent dividend yield over the years.

KNG: Not The Buy/Write ETF King

Russell 2000 index has been a good place to harvest volatility over the last 3 years. RYLD has tried to capitalize on that, but blind option selling is always problematic. We review the performance since the last article and update our trade.

RYLD: Imaginary Yield Falls Short Again, Updating Our Trade

Financial markets have been more stable in 2023, with mega-cap stocks seeing significant gains but small-cap stocks remaining nearly flat. Option-selling ETFs like RYLD may underperform due to low option premiums and are unsuitable for income investors seeking steady returns. The Russell 2000 index may outperform the Nasdaq 100 and S&P 500 over the next twelve months as market breadth normalizes.

RYLD: VIX Index Suggests It Is The Worst Time To Sell Options In Years

A buy-write, also known as a covered call strategy, is an investment strategy used to generate income and potentially hedge against downside risk.

Buy-Write ETFs to Consider in a Shaky Market

The purpose of this article is to update an article I published about 1 year ago in June 2022 regarding covered-call ETFs. More specifically, the thesis is to downgrade my ratings on Global X Russell 2000 Covered Call ETF and Global X NASDAQ 100 Covered Call ETF.

QYLD And RYLD: Yield Spread Narrowed And Ratings Downgraded

Aptus Drawdown Managed Equity ETF 

Manager Directed Portfolios - iM DBi Managed Futures Strategy ETF

First Trust Morningstar Managed Futures Strategy Fund

Invesco S&P 500 Downside Hedge ETF

Volatility is lately on the rise amid debt default worries. In such a scenario, investors should apply some hedging techniques to their equity portfolio to reduce the overall volatility or protect against significant market downturns.

ETFs to Hedge Volatility Amid Debt Default Worries

VettaFi's vice chairman Tom Lydon discussed the Global X Russell 2000 Covered Call ETF (RYLD) on this week's “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” RYLD provides investors access to the small-cap market.

ETF of the Week: Global X Russell 2000 Covered Call ETF (RYLD)

The Global X S&P 500 Covered Call ETF invests based on the Cboe S&P 500 BuyWrite Index. The Global X Russell 2000 Covered Call ETF invests based on the Cboe Russell 2000 BuyWrite Index.

XYLD Vs. RYLD: Comparing Different Market-Cap Call Writing ETFs

Funds that use options strategies similar to the Global X Russell 2000 Covered Call ETF usually outperform during market selloffs because of the increased volatility levels. There are multiple signs of a prolonged economic slowdown, and the Fed remains committed to raising rates. Fear and uncertainty levels in the market should stay elevated.

RYLD: A Fund That Should Outperform In A Recession

My Income Portfolio And Return Of Capital.

My Income Portfolio And Return Of Capital

Avantis U.S. Small Cap Value ETF

Invesco Senior Loan ETF

Schwab Strategic Trust-Schwab International Dividend Equity ETF

 SPDR Blackstone Senior Loan ETF

Vanguard Small Cap Value ETF

Vanguard Total International Stock ETF

Vanguard International High Dividend Yield ETF

Most Undervalued Asset Classes, Equity Industries, Segments, And Regions.

Most Undervalued Asset Classes, Equity Industries, Segments, And Regions

QYLD: The Yield Is A Mirage

The world seeks complexity, but simplicity often trumps complexity. For my investment goals, I have made the choice to focus mainly on CEFs and ETFs, carefully weighing their merits and drawbacks.

My Income Portfolio - Keep It Simple, Sweetheart

Since its inception in June of 2013, shares of XYLD are basically flat while generating 71.36% of its initial share price in dividends. Since 2021, XYLD has outperformed QYLD and RYLD by generating a larger total ROI and having a larger forward yield based on the TTM distributions.

News for Global X Russell 2000 Covered Call ETF ETF (RYLD)