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Is Ryld a covered call ETF?

RYLD is a covered call ETF that is indexed to the Russell 2000. The fund buys the Russell 2000 by purchasing VTWO, the Vanguard ETF indexed to the Russell 2000. This fund has an expense ratio of .6% and 1.39 billion in assets under management.

Is Ryld a good ETF?

RYLD is an ETF with high monthly income stemming from a Russell 2000 covered call strategy. The fund offers an attractive current yield of over 12%, but the fund’s simplistic strategy leads to some inefficiencies. We explore the fund and analyze strengths, risk factors, and alternatives.

How does Ryld make money?

RYLD seeks to generate income through covered call writing, which historically produces higher yields in periods of volatility. 1 RYLD has made monthly distributions 5 years running. RYLD writes call options on the Russell 2000 Index, saving investors the time and potential expense of doing so individually.

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