Why Investors Are Piling into Funds That Promise Not to Beat the Stock Market

  • 📰 WSJ
  • ⏱ Reading Time:
  • 13 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 9%
  • Publisher: 63%

United Kingdom News News

United Kingdom United Kingdom Latest News,United Kingdom United Kingdom Headlines

Funds that use options have attracted a lot of investors lately. Before you choose to buy one, make sure you understand the trade-offs you'll be making, says jasonzweigwsj

Finally, you can earn income of 4% or more on cash and bonds. What if you could earn monthly dividends on stocks at an annual rate of at least 11%?

That’s the pitch for exchange-traded funds that are generating eye-popping yields by selling options contracts. These ETFs, known as covered-call or option-income funds, also shielded investors from some of the pounding that stocks took last year.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

jasonzweigwsj CryptoUnitesForTurkey

jasonzweigwsj The White Lotus's Haley Lu Richardson pokes fun at her dress sense

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 98. in UK

United Kingdom United Kingdom Latest News, United Kingdom United Kingdom Headlines