Story preview
Continue reading on the publisher site for the full article.
Read on publisher →24/7 Wall St.
News Atlas is free and independent. If it’s useful to you, you can support it with a coffee. ☕ Buy me a coffee
Coverage
Tone
Outlets covering it
4
in the last 3 days
First reported
3 days ago
3 outlets since
Countries
3 other outlets reported this story in the last 3 days.
Covered call ETFs promise monthly paychecks, but the mechanism behind each distribution comes with trade-offs most investors never see until a rally leaves them behind or tax season arrives with an unexpected bill.
Three covered-call ETFs went ex-dividend on the same day, and the fund with the biggest name delivered the smallest check on an identical $100,000 investment. Before you assume JEPI still belongs in your income portfolio, check the numbers to make sure.
Monthly dividend ETFs provide a source of frequent payments from a single investment, but they have their downsides.