Hey, investors,
I accidentally stumbled upon the $CONY income ETF, which has been around for about 1 year and has caught my eye with its dividend yield of about 80 percent! Interestingly, despite the massive dividend, the fund has held its value so far. Moreover, it pays the dividend monthly. I have the urge to put about 1 percent of my capital into it. I'm taking it as a risky investment and if it doesn't work out, my portfolio will survive. What do you think?
Fund strategy description
The fund seeks current income. TheFunds secondary objective is to seek exposure to the share price of Coinbase Global, Inc. common stock ($COIN-0.6%), subject to a limit on potential investment gains. The Fund employs a synthetic covered call strategy to provide income and exposure to returns on the COIN stock price.
I looked it up, it's a US ETF, so it's not normally available to buy. However, it's available from FIO or LynxBroker via options (I plan to buy 1 option, i.e. 100 units here).
It can certainly be interesting. Personally, however, I'm definitely not into it, and I want to pick dividend stocks myself.
It may be interesting in the long run, but I don't think such a high dividend is sustainable. If it works now though, there's decent money to be made, it's just not for me.