Larry Berman CFA, CMT, CTA Purpose Premium Yield Fund PYF-T BUY Apr 08, 2024

An excellent way of sitting on cash. Between now and mid-October, we have volatile markets seasonally and this is a cash equivalent.

He likes a lot of the stuff that Purpose has been doing. They are very creative in some of the things they do. Involves a lot of quantitative stuff and Covered Calls on various equities. Slightly riskier, but he would certainly be a buyer. Wouldn’t have it as his total income, but would have it as a portion. When looking at yield, you want to have several different things to look at.

He loves the strategy. They are consistently taking in yield in the fund and then pay out 6%. The US exposure has hurt them a little over the last year. Option strategy premiums are lower at the moment.

This fund writes put options. This relies on the management as you don’t want to be made long a group of weak stocks. This is a short volatility strategy. You just need to know what your strategy is.

Actively managed ETF product. Writing puts & calls on the markets. 4-5% returns annually. Good yield product that is tax efficient. Alternative product that can balance a portfolio. 

Employs both puts and calls to provide some form of downside protection, though that's not always guaranteed. Sophisticated, complicated, very actively managed. In his experience, this type of ETF doesn't participate all the way in some of the selloffs.