Investment Q&A

All three funds have underlying expsoure to US treasury bonds, which of late have been declining as bond yields spike higher. All three also employ covered call strategies, which will naturally provide a higher total yield, but put a cap on price appreciation. Aside from the covered call strategy, a reversal in bond yields and bond prices will help to increase the unit prices of these funds. A potential catalyst that could cause yields to drop includes: 1) a reduction in global tariffs, 2) renewed investor optimism and confidence in the US, 3) less concern about inflation accelerating. 

For an investor that believes tariffs will be reduced, thus calming investor nerves around inflation, global growth, recession concerns, etc., we would be comfortable holding for a potential rebound in bond prices.