How to generate $500 per month using Covered Call ETFs.

To generate $500 CAD per month in passive income using covered call ETFs (We will use Global X funds for this example: USCC.TO, QQCC.TO, BKCC.TO, ENCC.TO, GLCC.TO, and RSCC.TO), follow these steps:

 

1. Understand the Yields of Each ETF

 

Each ETF offers a different yield, which affects how much money you need to invest to reach your income goal. Here's a simplified overview:

 

- USCC.TO (Global X S&P 500 Covered Call ETF): Offers an annual yield of approximately 7.07%.

 

- QQCC.TO (Global X NASDAQ-100 Covered Call ETF): Provides an annual yield of about 8.18%.

 

- BKCC.TO (Global X Equal Weight Canadian Bank Covered Call ETF): Delivers an annual yield of around 8.18%.

 

- ENCC.TO (Global X Canadian Oil and Gas Equity Covered Call ETF): Offers an annual yield of approximately 10.69%.

 

- GLCC.TO (Global X Gold Producer Equity Covered Call ETF): Provides an annual yield of about 10.31%.

 

- RSCC.TO (GLOBAL X RUSSELL 2000 COVERED CALL ETF): Delivers an annual yield of approximately 10.31%.

 

***yields change when the share price changes***

 

 

2. Diversify Your Investments

 

To spread risk, consider investing in multiple ETFs. Here's an example portfolio:

 

- USCC.TO: $30,000 at 7.07% yield → $2,121/year 

- QQCC.TO: $20,000 at 8.18% yield → $1,636/year 

- ENCC.TO: $20,000 at 10.69% yield → $2,138/year

 

**Total Annual Income**: $5,895

 

This portfolio is close to your $6,000 target. Adjust the amounts to fine-tune your income.

 

3. Monitor and Reinvest

 

- Reinvest Income: To grow your investment, consider reinvesting the monthly distributions back into the ETFs.

 

- Regular Review: Check the performance of your ETFs periodically to ensure they meet your income goals.

 

By following these steps, you can work towards generating $500 CAD per month in passive income through these covered call ETFs.