Eyeing ETF flows ahead of this week’s Fed meeting
Speakers
Christian Magoon
— CEO, Amplify ETFs
Summary
Ahead of a hard-to-predict Fed meeting, Amplify ETFs CEO Christian Magoon discusses fixed-income ETF strategies. He recommends covered call bond ETFs like LCDM to capture rich option premiums and hedge rate-cut uncertainty, and highlights the SSOFR ETF as a way to earn attractive overnight yields while waiting out volatility.
- Market prices about a 35% chance of a rate cut this week, with an 80% chance next month
- Covered call bond ETFs like LCDM target 12% yields by combining option income and interest
- These strategies can deliver 2-3x the underlying ETF yield and hedge against rate uncertainty
- Amplify offers covered call strategies on Treasuries (TLT), investment grade (LQD), and high yield (HYG)
- The SSOFR ETF gives access to the institutional SOFR overnight rate, yielding 3.6%
- Both approaches aim to generate income while navigating bond-market volatility
Ideas
Covered call bond ETFs boost income and hedge
Bond ETFs with covered call strategies, such as LCDM on LQD, boost income to around 12% (option income plus interest), delivering 2-3x the underlying ETF yield while hedging against Fed rate-cut uncertainty.
SOFR ETF SSOFR yields 3.6% to sidestep drama
The overnight SOFR rate is attractive for sitting out market drama, and the SSOFR ETF provides access to this institutional rate, yielding 3.6% with overnight duration.
Up Next
This CNBC video, published July 27, 2026, features Christian Magoon discussing LQDM, SOFR. 2 trade ideas extracted by AI with direction and confidence scoring.
Speakers: Christian Magoon · Tickers: LQDM, SOFR