Daily Dividend Insights
Summary
Covered call ETFs have surged in popularity, but their structure can erode net asset value (NAV) over time, particularly in rising markets. The InfraCap Equity Income Fund (ICAP) offers a solution by only covering 30-40% of its holdings with call options, allowing for upside participation while still generating income. This strategy balances yield with long-term NAV stability, making it a compelling choice for income-focused investors seeking to preserve capital.
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