Tax Alpha Insider

Tax Alpha Insider

Covered Call ETFs: The Good, the Bad and the Fugly

Real world examples of return of capital

Brent Sullivan's avatar
Brent Sullivan
Sep 29, 2024
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I am experimenting with a new style…

What follows is a series of infographics rather than prose. It is like a slide show or zine; my goal is that the concepts are easier to absorb when presented visually.

The Fugly?

“Return of capital” is an interesting tax hack. It effectively allows ETF (and other 40 Act fund) shareholders to receive their principal bac…

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