People who criticize covered call ETFs are right that a big distribution does not automatically mean you are making more money. What really matters is your total return — how much your portfolio grows after including both distributions and price changes. A fund paying 25% like $HHIS is not necessarily better than a fund paying 5% if the higher-paying fund grows less over time. On the other hand, covered call ETF investors are right that cash in your account has value. Monthly distributions can be spent, saved, or reinvested right away. Many investors like the steady income and prefer receiving cash rather than having to sell shares when they need money. Another advantage is that if the market crashes, any distributions you received before the crash are already in your hands. A growth investor may see unrealized gains disappear during a downturn, while a covered call investor has already converted part of their return into cash. A growth investor usually keeps the same number of shares, but those shares become more valuable over time. A covered call investor may end up with more shares if distributions are reinvested, which can lead to larger future distributions. Neither approach is automatically better. At the end of the day, it depends on your goal. If you want the highest possible long-term growth, a growth-focused investment may be better. If you want regular income and cash flow, covered call ETFs can make sense. The important thing is to look at both the income you receive and the overall growth of your portfolio, not just the yield. A market crash can make previously received distributions look more attractive, but over the long run, total return is still the best way to compare two investments
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Covered Call investing vs Growth Investinh | Passive Income | Blossom Social
