The Covered Call Tax Trap: These 3 ETFs Pay Around 12 Percent and Legally Shield Most of It From the IRS

Covered call ETFs advertise eye-catching yields, but the number on the label tells you almost nothing about what you actually keep after taxes. Three funds have quietly engineered their distributions to sidestep the IRS in ways most income investors have never considered.

Jul 27, 2026 - 02:00
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The Covered Call Tax Trap: These 3 ETFs Pay Around 12 Percent and Legally Shield Most of It From the IRS
Covered call ETFs advertise eye-catching yields, but the number on the label tells you almost nothing about what you actually keep after taxes. Three funds have quietly engineered their distributions to sidestep the IRS in ways most income investors have never considered.

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