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Opinions John Hood
CI TECH GIANTS COVERED CALL ETFTXF.TOCOMMENTAug 15, 2018
John HoodStock price when the opinion was issued
As of Jun 16, 2026. Market Open.
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(Note the shortish timeframe.) Still provides ~10% income yield, so he's happy to hold and see how markets shake out. Some of the mega-cap names haven't performed well over the past 6 months, so this is at a good entry point. If those names lead the next leg higher, then you get not only your income but also some capital gains as well.
Cole Kachur
Depends on your risk tolerance. These are volatile stocks. If he's going to take on the risk of owning some very highly priced stocks, he wants the full value of the upside and not capped by covered calls. The premiums are very rich, but that's not what he wants for his clients.
In general, he likes tech ETFs because they've driven 30% of the gains in the market. And AI will be into everything -- even his dog's vet has adopted it.
It holds the Mag 7 with a covered call. It uses more leverage than other covered call ETF, so there's a little more fluctuation. It pays around 10-11% in distributions, and he sees more upside.
Cole Kachur
It's done well, but his only question is, How does it compare to the S&P 500? This ETF is 90% IT and there's nothing wrong whit it, if you want to play this sector, though personally he's wary of the FANG stocks.