The author sold several high-yield covered call funds from his IRA, citing NAV erosion and capped upside, and moved back to low-cost index investing with VOO.
VOO — LONG The author sold his high-yield covered call funds after observing that distribution income came with NAV erosion and capped upside, producing only a 2.1% total gain since May 1. He argues that while accumulating, such funds are poor choices because total return shrinks and upside is capped. He is moving back to low-cost broad index funds, specifically VOO, to capture market upside and sleep well at night.
BasicallyVOO and chill and will sleep well at night.
This Reddit post, published January 04, 2026, features u/MachineLive114 discussing VOO. 1 trade idea extracted by AI with direction and confidence scoring.
Speakers: u/MachineLive114 · Tickers: VOO