CNBC(@CNBC):Covered call ETFs have gained a following for their ability to generate monthly cash flow. But a tax surprise could be lurking for many investors. These actively managed funds have different underlying assets and strategies. But the premise is generally the same. Covered call funds hold equities and sell call options or use related derivatives to generate income. Investors receive attractive income yields in exchange for limited capital upside. The tax piece is more complicated, however. Learn more:

2026.10.20 01:33

Covered call ETFs have gained a following for their ability to generate monthly cash flow. But a tax surprise could be lurking for many investors. These actively managed funds have different underlying assets and strategies. But the premise is generally the same. Covered call funds hold equities and sell call options or use related derivatives to generate income. Investors receive attractive income yields in exchange for limited capital upside. The tax piece is more complicated, however. Learn more: