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Posted by
Two Blokes Jun 28 -
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Stock
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UBS ETRACS Gold Shares Covered Call ETN offers a covered call strategy on gold, providing income with less correlation to equities, but at the cost of capped upside returns. Yields fluctuate between 6%-15%, and long-term investors face capital erosion as some payouts come from return of capital, not just option premiums. GLDI underperforms gold in strong bull markets due to its upside cap, but cushions downside during corrections, making it suitable for income-focused investors.
