Daniel Sotiroff, senior manager research analyst for Morningstar Research Services, explains how covered-call ETFs work along with the popular investment’s risks and rewards.

 

On this episode:

1. What are covered-call ETFs, and how do they work?
2. Why are retirees and other income investors drawn to these ETFs? What’s making them so popular this year?
3. Their yields look very high. What is driving them?
4. What types of trade-offs are investors making?
5. ETFs are known to be tax-efficient investments. What are the tax considerations for covered-call ETFs?
6. Should you hold covered-call ETFs in a taxable or tax-deferred account?
7. What’s the optimal retirement account to hold covered-call ETFs?
8. Let’s talk about covered-call ETF performance in 2025. What have you’ve seen?
9. Which covered-call ETFs do Morningstar analysts consider a solid choice for investors, and why?

 

Read about topics from this episode. 

Should You Own a Covered-Call ETF Like JEPI? 

Is It Time to Reconsider Dividend Funds? 

3 Great ETFs for Jittery Markets 

Covered-Call and Buffer ETFs: Stock Investing With Less Gain but Less Pain

Covered-Call and Buffer ETFs: Do the Pros Outweigh the Cons?

100% Downside Protection ETFs: What’s the Catch?

Our 2025 ETF Predictions: A Midyear Review

Covered-Call Stock Funds Like JEPI Are Popular. Should They Be?

The Active ETFs That Led Inflows During 2025’s First Half

5 Charts on How Tariff Trouble Rocked US Fund Flows

Investors, Be Careful When Buying New ETFs

Tax-Efficient Retirement-Bucket Portfolios for ETF Investors

25 Top Picks for Tax-Efficient ETFs and Mutual Funds

How to Maximize the Tax Efficiency of an ETF Portfolio
3 Great ETFs for an IRA in 2025

The Best ETFs and How They Fit in Your Portfolio

 

What to watch from Morningstar. 
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Market Volatility: 4 Key Factors to Track in Q3 2025

Is the International Outlook Brighter Than the US?

 

Read what our team is writing.

Daniel Sotiroff

Ivanna Hampton

 

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