Hey there. Funny enough, I just finished up a covered call piece that is coming out tomorrow. That is, selling covered calls yourself.
In terms of covered call ETFs, it really depends on what covered call ETF you're looking at.
Just because an ETF sells covered calls doesn't justify lackluster returns, is essentially what I'm going to be getting at. The yield is high, but remember in every case, total return is what matters.
So, an example. I'm a huge fan of ZWB. If you want exposure to the Canadian financial sector, just buy all 6, and let management sell covered calls for extra income. The ETF has a 5 year annual performance of 7.19% and its boosted yield is nice.
However, as another member commented, ZWC over the last 3 years has lost around 1% annually. It's a relatively newer ETF so it doesn't have much history. Why has it lost? Well, you don't need to look much further than its top 10 holdings. It has a very heavy presence in pipelines and financials. I personally don't like it's makeup, as it focuses on high yield and contains stocks like CIBC, Bank of Nova Scotia. BCE, Shaw.
Don't get me wrong, there is nothing wrong with these companies. But I'd rather hold Royal Bank, TD Bank, Telus etc.
I guess what I'm trying to say here, is covered call ETFs are a great way to get more income, but in no way should be purchased strictly because of that element. Total return and holdings are critical, then you can be happy about the added income.