| ETFs can be a great way to profit in the long term. | | | | Many ETFs will also allow you to sell covered calls on |
| If you want to get into investing and do not know | | | | it so you can make an even higher income off of it. |
| which stocks to buy and hold ETFs can be a great | | | | When you sell a covered call you are selling someone |
| benefit to you. And here is why. | | | | else the right to buy your ETF from you at a given |
| 1. Already Diverse | | | | price on or before a given date, so you might end up |
| ETFs are already diverse. If you buy an ETF you are | | | | getting called out. |
| buying something that tracks many different | | | | But if you sell the call with a strike price that is higher |
| companies and possibly many different sectors. So | | | | than the price you paid for it you would stand to |
| instead of you trying to find 20-30 different | | | | profit from exiting the position anyways. Covered |
| companies to hold you can simply invest in a couple | | | | calls are also a good way to pull out an income and |
| big ETFs. | | | | make up some of the loss when the ETF is going |
| That would give you the power to have a diverse | | | | through pullbacks. |
| portfolio which is great for the long term. | | | | 4. Most Mutual Funds Don't Beat The Market |
| 2. ETFs Pay Dividends | | | | Most mutual funds do worse than the market |
| Many ETFs will pay a nice little dividend. That is a | | | | average. Well there are ETFs out there that allow |
| great added bonus to owning a diverse portfolio. | | | | you to buy the market average. In other words |
| There are even income ETFs that you can search | | | | these funds allow you to beat the majority of mutual |
| for if your interest is mainly in the dividends. | | | | funds. |
| 3. Covered Calls | | | | |