Global X S&P/ASX200 High Dividend ETF (AYLD)

The AYLD ETF is an exchange-traded fund that employs a covered call or buy-write strategy to enhance income beyond standard dividends and franking credits. We like this offering because options are a specialised area of the market where many investors understandably fear to tread, and we feel the 0.6% management fee is reasonable considering the expertise offered: The AYLD holds the stocks in the ASX200 and sells at-the-money call options on the same index quarterly. This approach aims to generate additional income through option premiums. Dividends are paid quarterly on this fairly new ETF, which was launched in early 2023. Since its inception, it has returned an attractive 10.02% pa.

• We like this ETF for some spice toward delivering improved yield from the ASX, though in very bullish periods, the strategy will underperform as it caps upside from the market.