With risk-free rates holding near five percent, premium income ETFs are pushing yields into the 8%-12% range. We look at the different strategies on offer and where each one wins and losses.

There are many flavours of income generating ETFs using a various combination of options, structured product strategies, high yielding stocks, and volatility control. A typical fund in this sector will hold an index or stocks and sell call options against some or all that position This is a rapidly growing sector as demand for income from investors remains high. In a market of rising interesting rates again (5% in many markets), investors are often very yield hungry. The higher levels of ris