I have enjoyed putting together my “dogfight” series of articles, comparing the results of ETFs operating in the new category of single-stock, covered-call funds. Today let’s compare two ETFs that have Netflix (NFLX) as the underlying stock.
The new category of single-stock covered-call ETFs has two sponsors offering competing funds covering the same underlying stocks. This type of ETF is new in the market, with the oldest funds operating for over a year. The funds have been trading long enough to compare returns for covered call ETFs with the same underlying stock.
This is the fifth comparison article in my current series. You can find the previous ones here.
This week, I will compare the two Netflix (NFLX) covered call ETF returns since November 1, 2023.
The current quoted yield for the YieldMax NFLX Option Income Strategy ETF (NFLY) is 35.23%. Since November 1, 2023, the NFLY share price has declined by 3.3%. With the covered call strategy dividends, the NFLY total return jumps to a positive 51.5% NFLY has performed very well over the last year, rewarding investors with a 50%-plus return. The YieldMax strategy for NFLY shows how the returns from the company’s ETFs are mostly from the high distribution yields.
The Kurv Yield Premium Strategy Netflix (NFLX) ETF (NFLP) shows a current distribution rate of 21.59%, about half the current yield quote for NFLY. From November 1 through October 2, NFLP’s share price gained 22.4%. Over the period, including the dividends, NFLP put up a total return of 44.3%. NFLP put up a total return close to NFLY, but the return consisted of a balance of share price appreciation and dividends.
This is the fifth comparison out of the six Kurv covered call ETFs. The first two, AMZN and AAPL, were basically ties. The Kurv ETF has the clear winner between the two GOOGL covered call funds and YieldMax won the day with the MSFT covered call ETFs. Check back next week for the next installment.
I will also track comparisons over the longer term, and share that information with subscribers of my ETF Income Edge service.
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