What Are Boomer Candy ETFs and How Do They Work

Boomer Candy ETFs are a type of investment vehicle that allows you to invest in a diversified portfolio of companies that are likely to benefit from the aging population.

They work by tracking an index of stocks that are involved in the production and distribution of age-related products and services, such as healthcare, pharmaceuticals, and consumer goods.

These ETFs are designed to capture the growth potential of the aging population, which is expected to drive demand for these products and services.

By investing in a Boomer Candy ETF, you can gain exposure to this growing market with a single investment.

Boomer Candy ETFs are a type of investment that offers reliable dividends over time, with some yielding as high as 9.4% per month.

These funds, such as JEPI and JEPQ, use a simple approach to generate returns by investing in stocks and selling call options to take the premium, which is then distributed to shareholders each month.

The covered call option strategy allows investors to profit from the upward trend of their investments while also reducing the downside when there is volatility.

JEPI and JEPQ have a forward dividend yield of 7.1% and 9.4% respectively, which is substantially higher than other popular dividend ETFs like the Schwab US Dividend Equity and the Vanguard Dividend Appreciation.

JEPI and JEPQ are the two leading Boomer Candy ETFs, offering investors reliable dividends over time. JEPQ has a forward dividend yield of 9.4%, while JEPI yields 7.1%.

These monthly yields are substantially higher than other popular dividend ETFs, including the Schwab US Dividend Equity (SCHD) and the Vanguard Dividend Appreciation (VIG). Most importantly, these funds provide a higher return compared to US government bonds, which are yielding less than 5%.

JEPI and JEPQ use a simple approach to generate returns by investing in stocks and selling call options to take the premium, which they distribute to their shareholders each month. This strategy benefits investors by allowing them to profit from the upward trend of their investments.

The covered call option strategy can also help reduce the downside when there is volatility by taking the option premium. If the price falls before the expiry, a trader can ignore the option and buy it at the market price.

We're diving into the world of Boomer Candy ETFs, and it's a doozy. The latest episode of the MoneyMasters Podcast explores the unique characteristics of these funds, and I'm excited to break it down for you.

Boomer Candy ETFs are a type of exchange-traded fund that focuses on investing in companies that cater to the 50- to 70-year-old demographic. This age group has been dubbed the "Boomer Candy" market due to their purchasing power and influence.

The MoneyMasters Podcast features an interview with a financial expert who notes that Boomer Candy ETFs tend to perform well during economic downturns. This is because older adults tend to be more risk-averse and are more likely to hold onto cash during times of uncertainty.

One of the most popular Boomer Candy ETFs is the Vanguard Consumer Discretionary ETF, which has a 5-year annual return of 14.6%. This is a significant return, especially considering the fund's low expense ratio of 0.10%.

Boomer Candy ETFs often invest in companies that provide essential services to older adults, such as healthcare, pharmaceuticals, and financial services. These companies tend to be less volatile and more stable, making them attractive to investors seeking lower-risk investments.

Eric Balchunas' Content is all about helping retirees sleep better at night. He's enthusiastic about the growing category of ETFs that offer buffers and covered calls, which he affectionately calls "Boomer Candy".

These ETFs are designed to help nervous retirees stay invested while minimizing risk. Eric Balchunas is a big fan of this category, as evidenced by his post on the WSJ.

The term "Boomer Candy" might sound playful, but it's a serious concept that's gaining traction in the financial world.