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CI First Asset Gold+ Giants Covered Call ETF (TSX: CGXF)

This ETF invests in an equal-weight portfolio of the 15 largest gold and precious metals companies by market cap listed on North American stock exchanges that have liquid options markets. Holdings include B2Gold, Yamana Gold, Kinross Gold, Gold Fields Ltd., Pan American Silver, and Barrick Gold. Covered calls are written to generate income.


Income Investor

Although the yield is impressive, investors are paying for it in the loss of capital gains, due to the call option strategy. While the price of gold has moved steadily higher, the fund’s total return was only 5.4% for the six months to the end of June. That’s not an aberration. Since inception, the fund shows an average annual compound rate of return of -1.1%. - Gordon Pape

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CGXF was first recommended here on June 14, 2020