UBS ETRACS Gold Shares Covered Call ETN (GLDI)

UBS ETRACS Gold Shares Covered Call ETN (GLDI) offers exposure to gold with income via a covered call strategy, tracking the Credit Suisse NASDAQ Gold FLOWS 103 index. GLDI performs best when gold rises moderately and volatility remains, allowing for attractive monthly premiums while capping upside above 3%. Macro analysis suggests a supportive environment for GLDI as long as USD liquidity remains stable and the dollar trends downward, favoring gradual gold appreciation.

June U.S. exchange-traded monthly paid (MoPay) dividends, upsides, and net-gains include: 1. Stocks-by-yield (80); 2. Stocks-by-price-upside (30); 3. Closed-End-Investments, Exchange-Traded-Funds & Notes (CEICs/ETFs/ETNs) by yield >10% (80); 4. ‘Safer' Ideal-Dividend-Equities by Cash-Flow-Margins. Analyst estimates suggest top MoPay stocks could net 16.48% to 33.67% gains by June 2026, with an average net gain of 23.57% and higher-than-market risk. The dogcatcher rule highlights 31 'safer' MoPay stocks where dividends from $1K invested exceed share price, positive returns, and strong free cash flow coverage.

UBS ETRACS Gold Shares Covered Call ETN offers a covered call strategy on gold, providing income with less correlation to equities, but at the cost of capped upside returns. Yields fluctuate between 6%-15%, and long-term investors face capital erosion as some payouts come from return of capital, not just option premiums. GLDI underperforms gold in strong bull markets due to its upside cap, but cushions downside during corrections, making it suitable for income-focused investors.

GLDI offers a compelling 15% yield via a covered call strategy on gold, but principal risk from gold price corrections is significant. As an ETN, GLDI doesn't provide direct gold ownership and its price has lagged both gold and the S&P 500 over time. Total returns with dividend reinvestment are positive, but rising rates and gold volatility have pressured the ETN's price.

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GLDI: Yield-Generating Gold

Gold may be facing a near-term top or sideways channel. With a current yield of 11.87%, UBS ETRACS Gold Shares Covered Call ETN offers monthly income through a covered call strategy. GLDI has underperformed during gold's most recent torrid bull run but could outperform as gold takes a breather, drifting sideways and down, like it did from January to October 2022.

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Credit Suisse X-Links Gold Shares Covered Call ETN offers income-focused investors' exposure to gold with high yields from covered call premiums, but caps upside potential. GLDI's strategy involves selling slightly out-of-the-money call options on GLD, generating monthly dividends, with yields often in the 10-13% range. GLDI underperforms in strong bull markets for gold, as seen in the past year, but can outperform if gold prices stabilize or decline slightly.

The risk of a recession hitting the economy is rising. As a result, investors may want to batten down the hatches. We share three funds that we would buy to protect us from a recession if we could only own three.

The German stock market has gone parabolic in an exceptionally strong move, after meandering over the summer months with sub-par economic releases. The surface reason for this division is that the vast majority of German earnings are not driven by the domestic economy but by their multinational operations.

NEW YORK , Aug. 4, 2023 /PRNewswire/ -- On August 1, 2023, Credit Suisse announced expected coupon payments for the following ETNs: ETN Ticker ETN Name Closing IndicativeValue on7/31/23 Ex-Date Record Date Payment Date ExpectedCouponAmountper ETN 1 Coupon Frequency ExpectedCurrent Yield 2 USOI Credit SuisseX-Links® Crude Oil SharesCovered CallETN $80.2010 8/21/23 8/22/23 8/25/23 $1.6797 Monthly 27.10% 3 GLDI Credit SuisseX-Links® Gold SharesCovered CallETN $142.5552 8/21/23 8/22/23 8/25/23 $1.1333 Monthly 14.68% 3 SLVO Credit SuisseX-Links® Silver SharesCovered CallETN $78.1879 8/21/23 8/22/23 8/25/23 $1.6330 Monthly 26.73% 3 1. On   July 17, 2023, the Credit Suisse Nasdaq Gold FLOWS™ 103 Index, the Credit Suisse Nasdaq Silver FLOWS™ 106 Index and the Credit Suisse Nasdaq WTI Crude Oil FLOWS™ 106 Index (the "Indices") concluded the notional sale of options on GLD shares, SLV shares and USO shares, respectively, with August 2023 expiration.

The merger would bring one of Europe's largest asset gatherers to UBS.

While gold equities were up almost twice as much as gold in January, they were down more than twice as much in February. On February 13, B2Gold announced an agreement to acquire junior developer Sabina Gold & Silver in an all-share transaction.

I am structurally bullish on gold and oil with a multi-year timeframe. Between the two, gold likely has the advantage fundamentally and in terms of current momentum over the next 6-12 months.

As more Federal Reserve rate hike mulling continues through 2022, the push-pull dynamic allows traders to capitalize on the moves with exchange-traded products linked to precious metals—particularly gold and silver. Fresh off a 50-basis point hike, the Fed seems to be erring on the side of hawkishness, but talks of a recession amid inverting yield [.