Kiplinger Personal Finance Magazine — Treussard on “Equity Income” | Covered-Call ETFs

In a recent article by Andrew Tanzer in Kiplinger, I had the opportunity to share my thoughts on what investors must understand before investing in “equity income” or covered-call ETFs. While we understand the appeal of receiving substantial income from equity investments, we worry that investors are being “sold” into buying funds they don’t fully understand. At Treussard Capital Management, we emphasize the importance of aligning investor outcomes with preferences, which requires being educated and empowered.

🔍 Key Insights:

• "There are things that investors probably don't totally understand when they buy and hold covered calls," says Jonathan Treussard, founder of Treussard Capital Management. "For example, are you okay with giving up market upside but retaining downside risk in exchange for income?"

• "It's very important to understand that, by and large, covered-call ETFs tend to be an order of magnitude less tax efficient than plain-vanilla ETFs, and in a way that isn't understood by the investing public," says Treussard.

Read the full article: Read More

Disclaimer: This content is for informational purposes only and should not be considered as investment advice. Please consult with a qualified financial advisor before making any investment decisions.