Opinions
Larry Berman CFA, CMT, CTA
Global X MSCI Emerging Markets Covered Call ETF
EMCC-N
BUY
Nov 11, 2024
$24.839
Stock price when the opinion was issued
E.T.F.'s
It's the ideal tool to help you make quicker, more informed decisions for
managing and tracking your investments.
You might be interested:
DON'T BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research
We are comfortable with EMCC's strategy and would be fine with it if it matches one's objectives. However, it is quite small currently at only $14M assets. We would consider it too small to endorse. There are actually very few options with low US exposure. One we would be comfortable with is IDVO (US traded), with only 6% US exposure. Yields are a bit lower but still above average.
Unlock Premium - Try 5i Free
E.T.F.'s
He likes covered calls because they offer extra income and are tax-efficient. Remember that if the call strategy overwrites the entire portfolio (doing it closer to current prices), you will get more yield, but less upside. In a growth market, then, you don't want any covered calls. So, EMCC will do better than, say, ZWEN.