#high-yield-etfs

#high-yield-etfs

The Roundhill S&P 500 Target 20 Managed Distribution ETF is an actively managed ETF that pays monthly distributions at a target annualized rate of 20% while maintaining exposure to the S&P 500 Index. It does so by investing at least 80% of its net assets in FLEX Options (Flexible Exchange Options) that reference the SPDR S&P 500 ETF (NYSEARCA:SPY ) . These specialized options contracts allow the fund to replicate S&P 500 exposure while generating the cash flow needed for its high monthly distribution payments.

The answer might seem to be yes, especially when we take note of the gigantic yield of the YieldMax Ultra Option Income Strategy ETF (NYSEARCA:ULTY). Surely, the temptation to take a YOLO (You Only Live Once) trade with the ULTY ETF is strong as the fund's yield is huge. It feels like you can just sit back and hold the YieldMax Ultra Option Income Strategy ETF, and you're guaranteed to turn a profit eventually.

Is your retirement close? There's nothing to fear. There are ways to make your retirement financially secure and comfortable. Even if you have only 3 years before retirement, it is possible to build a passive income stream. You can achieve the monthly goal of earning $5,000 in dividends if you invest right. The first step is to start with high-yield exchange-traded funds (ETFs).