Failing to see the downside for GPIX GPIQ
So, obviously covered call funds are a sore topic for a lot of investors but the more research I do into these the more im having a hard time seeing the downside to them. Now keep in mind, I’m only about 4-5 years till retirement and I consider myself an income investor.
+ tax efficient, great yield, only writes calls on 25-75%, NAV appreciation so while it might take longer for it to bounce back in the event of a crash it will recover nonetheless
- obviously will lag underlying (duh but once again I’m an income investor), if the underlying takes a shit so will these and the payout will be lower till it recovers, option strategy at the mercy of the managers
It’s not like the old days where funds wrote calls on 100% of the holdings and bled NAV
Would like opinions from you all. Not gonna full port into it like a dumbass but would be great to be able to put in about 15-20%.
Not a bot - shamalamadingdong