Updated Wednesday, July 9, 2014 as of 11:58 PM ET
Portfolio Tip: How to Use Covered Calls
With cash equivalents paying next to nothing and popular bond funds yielding around 2%, advisors lack an easy path to meaningful investment income. As a result, some are selling covered calls — an options strategy that lets clients hold a stock for potential profit while making income-producing side bets on its intermediate-term movement.
“We use covered calls as an income solution for our conservative investors,” says Herstle Jones, who heads a planning firm in Medford, Ore. “Trying to generate 5% to 6% per year in income can be difficult for such clients in today’s environment, but we can do this with call proceeds and dividends.”   more »
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"Smart beta" ETFs are attracting funds from both active managers and passive indexes. more »
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Financial advisor use and recommendation of ETFs is continuing to grow, outpacing all other investment vehicles surveyed by the FPA's Journal of Financial Planning and the FPA Research and Practice Institute. more »
BlackRock has spent three years crafting a new type of actively-managed exchange-traded fund that's stoked optimism in the U.S. for expansion of the $1.8 trillion industry. The world's biggest money manager is confident the product will work, except the market will be a dud. more »
BlackRock's Laurence D. Fink, who oversees the world's biggest exchange-traded fund lineup, said leveraged ETFs are a structural problem and have the potential to "blow up" the industry. more »
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Investors looking to acquire dividend-oriented equity funds must navigate a number of portfolio options -- and a related set of challenges. more »
World's largest mutual fund company pulled in more than 90% of the more than $15 billion that investors poured into U.S.-listed ETFs in Q1, adding to fears that Vanguard is becoming a near monopoly. more »
U.S. stocks rose, sending the Dow Jones Industrial Average toward a record close, and Treasuries fell as a report showed U.S. companies added to payrolls last month. The dollar strengthened with copper and gold. more »
Investors of exchange-traded funds that buy U.S. government debt are signaling that economic-growth optimism is taking root. more »
Firms in the self-serve channel that can "combine delivery mechanisms" will be a "smart bet" going forward," predicts Tiburon managing partner Chip Roame. more »
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