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Opinions Larry Berman CFA, CMT, CTA
Evolve NASDAQ Tech Enhanced Yld Indx Fnd ETFQQQY.TOWEAK BUYDec 29, 2025
Larry Berman CFA, CMT, CTAUnknown
$28.04
Stock price when the opinion was issued
$30.78
As of Jun 15, 2026. Market Open.
0
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COMMENT
How good is the strategy of buying covered call ETFs which payout 12-17% for retirees?
You earn the total return, not the yield. Understand this as a caveat. Are intended to be tax-efficient income, which he likes. These make sense in a taxable account. But you don't need covered calls in a sheltered account.
No matter the product, you don't earn the yield, you earn the total return. In most of them, your capital is being eroded. The distribution may be 12-17%, but that's not the total return.
So his caveat is that you really understand the total return you're getting. Even though they're distributing a lot of yield, you'll see the price on the chart go down over time.
They're intended to be tax-efficient income, and he likes them from that perspective. So they make a lot of sense in a taxable account, especially if you're cautious or income-oriented. In a registered account if you're bullish on something, you don't need the covered calls. You just want to be long the underlying security, as you'll get better upside performance.