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Posted by
Two Blokes Apr 28 -
Filed in
Stock
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FEPI ETF offers a high distribution yield of 25–30%, but this yield is misleading due to the inherent risks of its covered-call strategy. The fund's strategy involves owning top tech stocks and writing covered calls, which can limit upside potential in exchange for premium income. Historical data shows that covered-call strategies, like those used by FEPI, often underperform due to poor upside capture, as seen with similar indices.
