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RYLD Yields 13.20% And Produces Better Results Than XYLD, QYLD (NYSEARCA:RYLD) | Seeking Alpha
Source: seekingalpha.com
Article summary:
1. Bond yields and CDs are offering higher returns than dividend stocks, making them more attractive to income investors.
2. Global X Covered Call ETFs offer higher yields and monthly income, but come with equity risk.
3. Since 2021, the Global X Russell 2000 Covered Call ETF (RYLD) has outperformed the Global X S&P 500 Covered Call ETF (XYLD) and the Global X NASDAQ 100 Covered Call ETF (QYLD).
Article analysis:
The article is written by Steven Fiorillo from Seeking Alpha, a financial news website that provides analysis of stocks and other investments. The article is generally reliable as it provides detailed information about the performance of different covered call ETFs since 2021, as well as their projected future yields based on their TTM distributions. The article also provides insights into how reinvesting distributions can increase yield on invested capital significantly.
However, there are some potential biases in the article that should be noted. Firstly, the author does not explore any counterarguments or present both sides equally when discussing the benefits of investing in covered call ETFs versus other investment options such as bonds and CDs. Secondly, there is a lack of evidence for some of the claims made in the article such as RYLD outperforming XYLD and QYLD since 2021. Thirdly, there is a lack of discussion about potential risks associated with investing in covered call ETFs such as volatility risk or liquidity risk which could affect returns significantly. Finally, there is a promotional tone to some parts of the article which could lead readers to make decisions without fully understanding all aspects of investing in these funds.