Q: Thoughts on this ETF.
5i Research Answer:
We consider it fine for tech investors seeking extra income. It owns 25 of the largest tech companies and sells options against them. Fees are 0.69%, assets $750M, yield 11.90% and 5-year annualized return 15.77%. It will lag in a big sector rally and provide a small cushion in declines. Some of its annual return will be return of capital. But we would be comfortable owning this for income-seekers who understand covered call strategies.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in TXF.