Credit Suisse X-Links Gold Shares Covered Call ETNs due February 2 2033

GLDI

Market cap $37.9M

Credit Suisse X-Links Gold Shares Covered Call ETN (NASDAQ:GLDI) pays a monthly distribution that has reached eye-catching levels, with a 20.5% annualized yield based on recent payouts.

GLDI and IAUI are both Buy-rated gold income ETFs, but GLDI is now a Strong Buy given expectations for a flatter gold regime. GLDI's fully covered call structure generates more reliable income in sideways or mildly bullish gold markets, dampening volatility and preserving NAV. IAUI offers better upside capture in sharp gold rallies but currently covers only ~40% of its portfolio, favoring total return over income.

UBS ETRACS Gold Shares Covered Call ETN (NASDAQ:GLDI) owns gold and sells call options against it monthly, passing the premium income to investors.

ETRACS Gold Shares Covered Call ETN offers income via call option premiums but caps upside during strong gold rallies. I recommend GLDI only for advanced investors, tactically, and at no more than 10% of a portfolio; otherwise, buy GLD for full upside. GLDI's yield reached nearly 16% over 12 months, but gold itself appreciated 70% in the same period, highlighting the strategy's trade-off.

GLDI, the UBS ETRACS Gold Shares Covered Call ETN, receives a hold rating due to current gold momentum and suboptimal risk-reward for covered calls. Gold's bull market is strong, with GLD posting its best January since 2012 and bullish technicals pointing to further upside potential. GLDI offers a high 15.8% yield from call option premiums but lags GLD in total returns and has lower liquidity and wider bid/ask spreads.

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.

This article highlights undercovered ETFs, providing investment ideas for various strategies, including income generation, growth, and diversification. The Pacer Metaurus US Large Cap Dividend Multiplier 400 ETF is recommended for retirees seeking income generation, likened to the S&P 500 for capital appreciation. WisdomTree U.S. LargeCap Dividend Fund and Wisdom Tree Floating Rate Treasury Fund ETFs are suggested for dependable, long-term returns and portfolio diversification.