iShares Cdn Financial Monthly Income ETF (FIE-T)

There are two elements to covered call strategies. There is the underlying stocks, and then the option premium. Volatility will continue to be high for the next couple years. Premiums will remain elevated. FIE pays back a part of your money back. There are a couple different elements to consider.

It's like XTR--the yield you seem to get is not what you're enirely getting. He'd rather do straight bond ETF or covered call one.

Doesn't like it at all. The problem is never trust yield. If an ETF is paying a yield that's higher than the yields of the stocks within that ETF, then where is the money coming from? The way this is presented to investors is unclear and
incorrect.

People buy this for the 6% yield, but the banks and high-yield companies inside this ETFs yield only half that. Where's does the rest come from? This is about a return of your own capital to goose the yield, not a return on capital. You end up with a lower adjusted cost base, so when you sell it yet get whacked with a heavier tax.

Not one of his favorites. One of those ETFs where there is the possibility of Return of Capital as opposed to Return on Capital.

It is a straight pass-through of distributions. When an ETF has a fixed distribution that is higher than what is in it, then you are getting some of your own capital in your distribution and the ETF provider could alter it.