Daily Dividend Insights
Summary
A new generation of covered-call ETFs is trying to fix the tradeoff that plagued first-gen buy-write products — steep NAV erosion in bull markets and tax-inefficient distributions. Partial-overwrite funds from Goldman Sachs (GPIX, GPIQ) and call-spread overlays from NEOS (SPYI, QQQI) preserve more equity upside while using Section 1256 index options for 60/40 long/short-term tax treatment. T. Rowe Price adds a different angle with TCAL, writing single-stock calls to harvest richer implied-volatility premiums, and TPUT, which writes OTM puts against short-duration Treasuries as an enhanced cash sleeve. Over the trailing year, GPIX returned roughly 18% NAV, GPIQ around 21%, and SPYI and QQQI each delivered about 16% — with expense ratios as low as 0.29%.
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