Overview of FT Vest Gold Strategy Target Income ETF (IGLD)
The FT Vest Gold Strategy Target Income ETF (BATS:IGLD) employs a gold-focused investment approach using partially covered call strategies to generate income. However, it appears that capturing significant upward movements in gold prices, especially rapid surges, is not IGLD's strong suit.
Performance and Market Resilience
While the fund shows reasonable resilience during downturns, its ability to outperform in stagnant or declining markets does not compensate for missing out on gains during bullish phases.
Yield and Investment Strategy
Although the yield offered seems appealing, it is largely influenced by occasional large payouts. IGLD's strategy of preserving net asset value (NAV) makes it more suitable for long-term investors rather than those seeking high, yet unreliable, yields.
Current Investment Outlook
Considering its structural limitations, capped upside potential, and recent underperformance compared to alternatives like GLDI, the current stance on IGLD is a hold, especially amid strong gold bull markets.
Note: The author has no current holdings or pl...