5 Derivative Income ETFs to Invest In

1. Global X S&P 500 Covered Call ETF (NYSE:XYLD)

Global X S&P 500 Covered Call ETF (NYSE:XYLD) writes covered call options on the S&P 500 Index, and the ETF has made monthly distributions to shareholders for more than 8 years. As of February 25, the 12-month trailing yield for Global X S&P 500 Covered Call ETF (NYSE:XYLD) stood at 10.24%. 

A notable underlying stock in Global X S&P 500 Covered Call ETF (NYSE:XYLD)’s portfolio is Johnson & Johnson (NYSE:JNJ), a company that manufactures and sells healthcare products worldwide. 

Johnson & Johnson (NYSE:JNJ) is a dividend king, with 59 consecutive years of dividend growth. On January 4, Johnson & Johnson (NYSE:JNJ) declared a $1.06 per share quarterly dividend, in line with previous. The dividend is payable on March 8, to shareholders of record on February 22. The stock delivers a dividend yield of 2.50% as of March 7. 

Among the hedge funds monitored by Insider Monkey in Q4 2021, 83 funds were bullish on Johnson & Johnson (NYSE:JNJ), holding stakes worth $7.3 billion. Fundsmith LLP was the largest stakeholder of Johnson & Johnson (NYSE:JNJ) among them, with 7.20 million shares valued at $1.16 billion. 

Distillate Capital mentioned Johnson & Johnson (NYSE:JNJ) in its Q2 2021 investor letter. Here is what the firm had to say:

“The largest additions in the rebalance, Johnson & Johnson (NYSE:JNJ) was around 50 and 40 basis points incrementally. J&J underperformed in the quarter while its normalized free cash flows held steady and so its position size was topped off to match the stable cash flows.”

For more cutting edge investment ideas, be sure to check out 10 Best Cryptocurrencies To Invest Your $1000 and 10 Dividend Stocks to Buy for Retirement in 2022 According to Reddit. 

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