Governments and corporations issue bonds when they need to raise money. In return for buying the bonds, the investor – or bondholder – receives periodic interest payments known as coupons.
A covered call ETF is an exchange-traded fund that holds a portfolio of stocks and earns income by selling call options on those stocks. These funds are often marketed as attractive because they can generate income, reduce volatility, and give investors exposure to covered call strategies without needing to execute trades themselves.