MSTY ETF Analysis: Dividends, Returns TSX:MSTY

Analysis

Key stats

The fund seeks to provide long-term capital appreciation by investing in Microstrategy (ticker: MSTR) shares and high monthly cash distributions. The actively managed ETF also employs an active covered call strategy, reviewed monthly, on up to 50% of the portfolio. Call options are typically written at-the-money, but the manager may write out-of-the-money options at its discretion. This strategy limits participation in potential gains in exchange for income. The fund may invest up to 100% of its assets directly or indirectly in Microstrategy stocks. Investors should note that the shares take on added volatility due to the lack of diversification. Purchasers should conduct their own stock research before initiating a position and trade with conviction.