The Best ETFs for Reliable Cash Flow

If you have investments in the “hot stocks” for this year, you know how fast sentiment can turn negative, and share prices tumble. While the long-term prospects for large tech, AI, and space stocks look bright, it’s tough to get the timing right with buying and selling.    

To help fight the emotional swings, I recommend having a significant portion of your portfolio invested in high-yield securities. Dividend payments continue, pouring money into your account through the ups and downs of the broader market.

Recently, GlobalX ETFs published this chart showing average five-year yields of the major types of income-paying assets.

I am sure your eyes were drawn to the right side of the chart, where you see the covered call ETFs that have been paying double-digit yields. The GlobalX ETFs are some of the longest-lived covered call ETFs. XYLD and QYLD launched in 2013. RYLD has existed since 2019.

The number of covered call ETFs has exploded over the last three years. In 2020, there were fewer than 20 ETFs in the category. My option strategy ETF database currently includes almost 150 ETFs. Older funds like the GlobalX ones highlighted here tend to underperform their newer competitors, which employ more advanced trading strategies.

In fact, in February of this year, GlobalX launched its own QYLD and XYLD competitors. They are:

●   Global X Nasdaq-100 Income Edge ETF (EDGQ)

●   Global X US 500 Income Edge ETF (EDGX)

These two ETFs have distribution yields of 13.6% and 9.2%, respectively. The fund managers are focused on realizing more of the gains earned by the underlying assets.

Because of the high-yield ETFs launched in recent years, we launched our ETF Income series of newsletters. If you are serious about earning double-digit yields and maintaining your portfolio values, join us.