DV DVO First Trust Dorsey Wright Momentum & Low Volatility ETF Loading... : Bullish and Bearish Analyst Opinions

Christian states that "DVO has gained a little bit over 5% this year... and our IDBO [IDVO] ETF the international version has gained a little over 12%." He contrasts this with a "yield trap" approach, advocating for "yield smart" which leaves room for capital appreciation. In a flat or volatile market (S&P flat year-to-date at time of speaking), strategies that combine high-quality dividend equities with tactical covered calls (written 5-10% out of the money) generate income without capping all upside potential. This offers a superior risk-adjusted return compared to pure high-yield instruments that sacrifice growth. Long "Yield Smart" Dividend/Option Strategies. A massive, rapid market rally would see these strategies underperform pure long delta due to the covered calls capping some upside.