KGLD: Trying To Outperform Gold And Generate Income
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Jack Bowman8.31K FollowersFollow5ShareSavePlay(11min)CommentsSummaryKurv Gold Enhanced Income ETF aims to outperform gold's price return, a rare objective among covered call-based funds.KGLD offers a 12.2% distribution rate, paid monthly, primarily using covered calls, but this caps price appreciation potential.Since its inception, KGLD has not yet outperformed gold's price return, though its short history makes definitive judgment premature.The fund's unique strategy could add value to income portfolios if it achieves its ambitious dual-return goal.I am structurally bullish on gold, and recommend income investors consider KGLD, but mind its risks. Bicho_raro/iStock via Getty Images Earlier this month, I wrote "IAUI: Giving Gold the High-Income Treatment," where I discussed why adding precious metals-based income funds to a portfolio of equity income funds and gave IAUI a "Buy" rating. In the comments section, I got aThis article was written byJack Bowman8.31K FollowersFollowNewsletter Author | Investment Advisor | Top 5% of Experts on TipRanks | Long Signal, Short Noise | I am a macro-oriented and data-driven investor who obsesses over connecting dots that others don't see (or want to see), expressing my views through concentrated, asymmetrical, and high-conviction positions. I manage risk with discipline, often reminding investors that position sizing is often more important than security selection. I'm on a quest to uncover narrative trends before mainstream financial media, a process I've been describing as the hunt for information alpha. My weekly newsletter is called The Macro Obsession. "Successful investing requires holding uncomfortably idiosyncratic positions." — Howard Marks, paraphrasing David Swensen "History does not repeat, it instructs." — Timothy Snyder, On TyrannyAnalyst’s Disclosure:I/we have a beneficial long position in the shares of GLD, GLTR, GDMN, YGLD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.