A Genuine Investing Question Something occurred to me on my walk this morning. For the past three years, I’ve been trying to continually improve my financial literacy — books, audiobooks, podcasts, research, all of it. There are well-known books about index investing, dividend investing, stock picking, active vs. passive investing, tax strategies and even the Smith Manoeuvre. But I realized this morning: I’ve never had a book recommended to me that makes the case for covered-call ETFs as a long-term investing strategy. There ARE books about options and how to write covered calls. And I found a newer book, Option-Premium ETFs: Risk Transfer and Return Profiles, that discusses these products. But I’m thinking more along the lines of Millionaire Teacher, The Wealthy Barber or The Little Book of Common Sense Investing. Something that lays out: Here’s why you would build a long-term portfolio using covered-call ETFs. Here’s the evidence. Here are the benefits, risks and trade-offs. Covered-call ETFs have become increasingly popular, yet after three years of trying to educate myself about investing, I can’t remember ever coming across that book. Maybe I’ve simply missed it. Has anyone read one they would recommend? Genuinely asking. If it’s out there, I’d like to read it and increase my understanding of the strategy.
3,826 views
38 Comments
Levi Ewald@smallbird.financial · 16d
That’s a great point, I made a post a number of months ago that had the same realization, except in regards to the fact that no credentialed professionals recommend CC ETFs. Even ones that sell no products, so they have any financial instrument at their fingertips, don’t recommend them. Unfortunately you only see them recommended by people who are very new to investing (haven’t looked at the numbers deeply enough), or people who are getting paid to promote them by fund companies. It’s a sad reality we live in.
David Wells@zdawn6818 · 16d
I’ve never read it but I’ve heard the income factory is a good read. I think you could adapt the principles to cc ETFs. The Income Factory: An Investor's Guide to Consistent Lifetime Returns by Steven Bavaria
Silver BTC King@silverking · 15d
There are no books cause it makes no sense to do long term..lol. it would be called " the best way to underperform "
george Young@geo_van · 15d
Based on some research, books that teach how to write covered calls (or how the ETFs work mechanically) and some newer practical guides focused on the ETFs themselves do exist. What is still largely missing is the clean, narrative, evidence-based personal-finance book that says: “Here’s why a thoughtful long-term investor might deliberately build a meaningful portion of their portfolio around covered-call ETFs, here’s the historical evidence and data, and here are the clear benefits, risks, and trade-offs — presented the way Bogle or Hallam would present indexing.”
See the full comment section 👀Sign up for the full Blossom experience!
