Three actively managed ETFs offer yields up to 9 percent as the S&P 500 faces historically negative September returns.
Three ETFs are targeting income investors amid September’s historically weak stock market performance, offering yields up to 9 percent. The S&P 500 has averaged negative returns in September since 1928, with the VIX recently spiking to 31, boosting premiums for call-writing income funds like BALI and DIVO.
BALI and DIVO use options overlays on large-cap portfolios to generate income, while JAAA holds AAA collateralized loan obligation tranches with near-zero equity sensitivity. The funds provide floating-rate yields of roughly 5 percent, appealing to investors seeking stability during market downturns.
With the S&P 500 up 13 percent year-to-date, these ETFs aim to deliver steady cash flow as equities navigate their weakest seasonal stretch.