gorodenkoff/iStock via Getty Images I have covered the Amplify CWP Enhanced Dividend Income ETF ( DIVO ) and the JPMorgan Equity Premium Income ETF ( JEPI ) separately and rated both as a Buy. Both are popular income ETFs with AUMs running in billions - although JEPI's ~$42b AUM clearly makes it the more popular vehicle compared to DIVO's ~$6b. You can read my previous work on these ETFs here and ...
gorodenkoff/iStock via Getty Images I have covered the Amplify CWP Enhanced Dividend Income ETF ( DIVO ) and the JPMorgan Equity Premium Income ETF ( JEPI ) separately and rated both as a Buy. Both are popular income ETFs with AUMs running in billions - although JEPI's ~$42b AUM clearly makes it the more popular vehicle compared to DIVO's ~$6b. You can read my previous work on these ETFs here and here . Both ETFs are not run-of-the-mill covered call strategies on a market index but aim to add value at the portfolio level too (active equity portfolio). DIVO takes a dividends-first approach to support income and adds an option layer less aggressively (opportunistically). JEPI uses the equity layer as a stabilizer and writes options a little more aggressively but is still not the most aggressive option strategy you could see in the covered call space. Two ways to solve the same objective of income. And with an additional offshoot, that means dampening volatility versus the market (proxied by, say, S&P 500, SPY). To recap the mechanisms discussed in my earlier analyses, DIVO has a value-tilted concentrated portfolio (20-25 stocks) that derives ~2-3% income from dividends and aims for the balance 2-4% from options (given its yield is in the vicinity of 5-6%). The option layer is not aggressive, so upside capture is good, although the portfolio itself is not growth oriented. JEPI also focuses on a low volatility portfolio with a higher emphasis on covered call mechanisms (through ELNs). Since the underlying portfolio is less dividend-focused, the ask of the option layer appears to be higher (anyway implied given its higher yield of greater than 8%). I position it as a low-volatility defensive income engine. Data by YCharts In this article, I focus on the relative strengths and weaknesses of both these ETFs when answering the question around how to extract income from equities with low volatility, especially with an eye on the market regime we are in. This comparison is im...
Hong Kong’s second-largest exchange traded fund, focused on Chinese tech stocks, saw record inflows in March, highlighting investors’ pursuit of promising growth opportunities while weighing Iran war jitters. The CSOP Hang Seng Tech Index ETF , which is also the largest tech-focused fund listed in the city, drew HK$13.6 billion ($1.7 billion) in net buying this month through March 27, Bloomberg-co...
Hong Kong’s second-largest exchange traded fund, focused on Chinese tech stocks, saw record inflows in March, highlighting investors’ pursuit of promising growth opportunities while weighing Iran war jitters. The CSOP Hang Seng Tech Index ETF , which is also the largest tech-focused fund listed in the city, drew HK$13.6 billion ($1.7 billion) in net buying this month through March 27, Bloomberg-compiled data show. That’s the biggest monthly total since its 2020 debut, even as the fund fell about 9% in March, tracking the broader tech sector decline in the city. It also ranks among the largest inflows of any ETF in Asia this month. The Yuanta/P-shares Taiwan Top 50 ETF, Taiwan’s largest equity ETF, is set to finish the month as the region’s leader , eclipsing its Hong Kong peer with about $4.5 billion of inflows. While the Taiwanese fund drew much of its demand from local investors, Hong Kong’s CSOP ETF appears to have attracted both offshore investors and buyers in the city, while mainland Chinese investors remained hesitant . Holdings of the CSOP ETF — whose investments include Alibaba Group Holding Ltd. and Meituan — by southbound mainland investors fell to 67% as of March 27, down from 70% at February’s end, according to data from East Money Information Co.
Nutthaseth Vanchaichana/iStock via Getty Images When analyzing the Goldman Sachs BDC ( GSBD ) in the context of the current market and macro conditions, several conflicting factors come into play. The pressures over the past few months have been amplified by the Iran war. However, signs of fatigue and unwinding in AI trades (markets uncomfortable with long-duration assumptions and high valuations)...
Nutthaseth Vanchaichana/iStock via Getty Images When analyzing the Goldman Sachs BDC ( GSBD ) in the context of the current market and macro conditions, several conflicting factors come into play. The pressures over the past few months have been amplified by the Iran war. However, signs of fatigue and unwinding in AI trades (markets uncomfortable with long-duration assumptions and high valuations) were already starting to show up since October last year. In such markets, BDCs do not function as defensives either because of leveraged credit positions by definition. So, the macro and market environment is not unusually supportive for GBDC. Additionally, we are already talking about a stickier-than-expected inflation regime ahead with slow growth, and stagflation risks are probably one of the biggest deterrents for BDCs with growing credit risks and little income growth. The rates scenario also potentially presents the worst of uncertainties, with credit stress concerns far from over (if rates remain higher for longer) and the declining overall rates cycle pressuring income for longer-term horizon investors. GSBD is a high-quality and high-yield credit instrument, no doubt, and has been correcting in the recent past, reflecting some of the macro worries. The Q4 2025 results and commentary also show a mix of green shoots (like improvements in non-accruals) and underlying tensions that should be watched (like an increase in watchlist loans and reliance on non-cash). Overall, the fundamentals and macro/market conditions do not look clean. However, this analysis looks into why the GSBD stock still becomes a buy, despite the not-so-perfect positioning. The core support comes from the ~30% discount it is trading at today. That, coupled with the fact that most of the fundamental stress ahead (in a realistic but aggressive stress scenario) appears to be cushioned by 2-3 years of even a stressed dividend (that’s actually strong for a credit asset), makes GSBD a buy on the overa...
UK PM to chair meeting in Downing Street on how government responds to economic consequences of Iran war later on Monday Good morning. Keir Starmer will today chair a meeting in Downing Street on how the government responds to the economic consequences of the Iran war, which has the potential to upend much of what the government is trying to do to improve living standards. And so he is probably no...
UK PM to chair meeting in Downing Street on how government responds to economic consequences of Iran war later on Monday Good morning. Keir Starmer will today chair a meeting in Downing Street on how the government responds to the economic consequences of the Iran war, which has the potential to upend much of what the government is trying to do to improve living standards. And so he is probably not too happy about the fact that this morning he has to attend an event in the West Midlands launching Labour’s English local elections campaign. It is a relatively low-key launch. “The Westminster press pack wasn’t invited for a full Q&A,” Politico reports . Starmer will be back in London later for his Iran war meeting. We’re going to fight to earn every vote. Fight for our values. And fight for the country we are building together, a Britain built for all. Because, in the context of everything that is happening in the world. Those values – that fairness we stand for – it’s never been more important. We will protect our forces, our people, our allies in the region. But I made the decision that it is not in our national interest to commit British forces to a war, without a clear legal basis and a clear plan – and I stand by that. It’s a question of judgement. Do not forget that the Tories and Reform would have rushed us into this. With no thought of the consequences, including for the cost of living. Utterly reckless. Continue reading...
Bitcoin (CRYPTO: BTC) launched in 2009, and it quickly attracted hordes of hardcore believers who predicted it would transform the entire financial system. In 2013, two friends named Billy Markus and Jackson Palmer felt the cryptocurrency industry was suddenly taking itself too seriously, so they launched a token called Dogecoin (CRYPTO: DOGE) . It was inspired by the famous "Doge" meme, which was...
Bitcoin (CRYPTO: BTC) launched in 2009, and it quickly attracted hordes of hardcore believers who predicted it would transform the entire financial system. In 2013, two friends named Billy Markus and Jackson Palmer felt the cryptocurrency industry was suddenly taking itself too seriously, so they launched a token called Dogecoin (CRYPTO: DOGE) . It was inspired by the famous "Doge" meme, which was sweeping the internet at the time. Markus and Palmer admitted that the whole exercise was a joke, but investors had the last laugh when Dogecoin's market capitalization soared above $90 billion in 2021, making it more valuable than most companies in the S&P 500 . Unfortunately, since sheer speculation drove that incredible rise in value, an inevitable crash followed. Dogecoin is now trading at just $0.09 per token, well below its 2021 peak of $0.73. Here's why I think it could decline by a further 50% (or more) from here. Continue reading
zotyesz/iStock via Getty Images Investment Thesis Nabors Industries ( NBR ) has approximately doubled since my prior article : Seeking Alpha This probably makes it a good time to revisit the investment thesis, especially in view of the Iran war that is already extending beyond one month, with profound consequences for the global energy complex. Energy stocks ( XLE ) have gone up in this time, thou...
zotyesz/iStock via Getty Images Investment Thesis Nabors Industries ( NBR ) has approximately doubled since my prior article : Seeking Alpha This probably makes it a good time to revisit the investment thesis, especially in view of the Iran war that is already extending beyond one month, with profound consequences for the global energy complex. Energy stocks ( XLE ) have gone up in this time, though not nearly as much as oil prices ( CL1:COM ): Data by YCharts First-order thinking may suggest the war and the closure of the Strait of Hormuz are bullish for Nabors too. However, the situation is more nuanced, and I believe Nabors has more to gain from the cessation of hostilities than their continuation. The longer the war goes on, the greater the risk of impacted energy infrastructure and suspended drilling operations. As Nabors has bet big on the SANAD joint venture with Saudi Aramco and also has a presence in neighboring Gulf countries, this means a potentially significant EPS hit. Payments from customers may also be at risk. Conversely, the war's end will bring along demand for rebuilding the damage caused to the oil infrastructure, and that will likely result in Nabors' revenue from the region exceeding any pre-war expectations. Ultimately, I don't have a geopolitical crystal ball and cannot predict when or how the war will end. That is why I have adjusted my Nabors stance to neutral. My preference currently is for oilfield services stocks that may do well under both the war ends / war continues scenarios. Recap of the Recent Bullish Factors In my view, there are several reasons why Nabors' stock started moving up. First, the Quail divestment I have discussed previously allowed meaningful deleveraging - net debt is now below 2.0x EBITDA for the first time in a long while: Koyfin Yields on Nabors' traded debt have fallen meaningfully: TradingView Assuaging the debt concern has gone a long way in helping the equity "re-rate." Second, Saudi Aramco - before the war - ...