The 0DTE Covered Call ETF Is the Newest Wall Street Income Invention and These Two Pay Investors Like Clockwork Every Friday Quick Read – XDTE and QDTE turn daily options selling into a weekly income stream: Both funds maintain synthetic index exposure while selling…
t-of-the-money 0DTE calls every trading day to generate premium income. – The massive distribution rates come with important caveats: Much of the current payout is classified as return of capital, which can defer taxes but should not be confused with investment income. – Convenience comes at a cost: With 0.97% expense ratios and historically weaker total returns than broad index ETFs, these funds are best viewed as specialized income tools rather than core portfolio holdings. – Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and QDTE didn’t make the cut. Grab the names FREE today
Gone are the days when zero-days-to-expiration, or 0DTE options were reserved for degenerate traders on WallStreetBets looking to blow up their portfolios. Wall Street has stepped in and essentially said, “Instead of buying short-dated options as lottery tickets, why not sell them and collect income instead?” Like many innovations in finance, that idea has now been packaged into an ETF wrapper for an increasingly large group of yield-hungry passive income investors. Before we begin, though, there are a few important caveats to go over.
First, both of the ETFs discussed today advertise eye-popping distribution rates. However, investors should understand that a large portion of those distributions currently consist of return of capital. That is essentially your own money being returned to you.