Should I Buy Global X Russell 2000 Covered Call ETF (RYLD)? Finance YouTuber Analysis

The YouTuber recommends RYLD as a complement to QYLD, offering exposure to small-cap stocks with an 11.1% dividend yield. It uses a similar covered call strategy, investing in the Vanguard Russell 2000 fund and selling call options against it to generate income, with a lower expense ratio than closed-end funds.

“Similar to that is the globalx russell 2000 covered call etf ticker ryld and it's 11.1 percent dividend yield and here instead of holding tech stocks the ryld is holding shares of the companies in the russell 2000 index which are the smallest two-thirds in the stock market”

The YouTuber notes that RYLD offers exposure to small-cap stocks and a high dividend yield through its covered call strategy on the Russell 2000. However, it has a double layer of costs due to investing in a Vanguard fund and has limited trading history.

“The pros of the RYLD ETF are that you get that gross stocker exposure to those small cap stocks so a different group compared to the big company stocks that you'll see in some of these other funds.”