The iShares Russell 2000 ETF (IWM) has a low yield of 0.95%, but investors can increase income by selling covered calls on their 100-share positions. IWM offers daily-expiring options with high liquidity and volatility, making it attractive for this strategy. For example, selling a $310 strike call expiring in about a month can generate an immediate yield of 0.64%, annualizing to about 7.7%. However, risks include losing shares if the price rises above the strike or facing losses if the ETF price falls sharply. Covered calls work best in stable or moderately rising markets and should not be seen as a hedge against downside risk.
The Columbia Seligman Premium Technology Growth (STK) closed-end fund is trading at its widest discount to net asset value in over ten years, currently 7.9%, driven by recent tech sector volatility and profit-taking. Despite a market pause since mid-...
The iShares Russell 2000 ETF (IWM) charges a 0.19% expense ratio, significantly higher than similar ETFs like Vanguard's VTWO and iShares Core's IJR, which charge about a third of that. Beyond fees, IWM suffers from an annual drag due to the Russell ...
