DV
Dividend Vision

Dividend Vision Academy

ETF Types

Not all income ETFs work the same way. These guides explain the major fund structures — covered-call ETFs, crypto income funds, and beyond — including how each one generates its yield and the trade-offs that come with it.

ETF Types Business Development Companies (BDCs) BDCs are publicly traded companies that lend to and invest in small and mid-sized private businesses, passing through most of their income as high dividends that often yield 8-11%. 🔵 Intermediate11 min read ETF Types Closed-End Funds (CEFs) A closed-end fund is an exchange-listed fund with a fixed share count that can trade at a premium or discount to NAV. For income investors, CEFs offer high, leveraged distributions — and a classic yield trap when a fat payout hides a shrinking NAV. 🔵 Intermediate10 min read ETF Types Covered-Call ETFs Covered-call ETFs hold a stock portfolio and sell call options on it to generate high monthly income. The trade-off is capped upside in exchange for that yield and lower volatility. 🔵 Intermediate12 min read ETF Types Expense Ratio The expense ratio is the annual percentage a fund charges to run itself, quietly skimmed from returns every day. For long-term ETF and income investors it is one of the few costs you can control — and small differences compound into real money. 🟢 Beginner11 min read ETF Types Master Limited Partnerships (MLPs) MLPs are publicly traded partnerships — mostly energy pipeline operators — that pay no corporate tax and pass through high, tax-deferred distributions, but hand you a K-1 form and can be awkward to hold in an IRA. 🔵 Intermediate12 min read ETF Types Options Basics Options are contracts to buy or sell a stock at a set price by a set date. Understanding calls, puts, strikes, and premiums explains exactly how covered-call ETFs generate their high monthly income. 🔵 Intermediate11 min read ETF Types REITs (Real Estate Investment Trusts) A REIT is a company that owns or finances income-producing real estate and must pay out at least 90% of its taxable income as dividends, which is why REITs are prized for high, steady yields. 🟢 Beginner11 min read
Back to all topics

Ready to apply what you've learned?

Analyze a portfolio, compare funds, or screen for income — with the concepts from these guides built in.