Monday, October 7, 2024

‘100% yield’

Today's Big Take is here.

Oct. 7, 2024

Illustration: Angela Kirkwood

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Amateur investors are plunging into the complex world of derivatives-powered ETFs that can dangle huge payouts riding big-name stocks, among other goodies. Fueling the craze are funds that sell options to generate cash, which is then sent back to shareholders as dividends. But while usually marketed for their defensive traits, it's their yields — periodically touted by fans at 100% or more — that have enamored online loyalists.

Issuers say they're simply meeting incessant demand for smart investing styles that were once solely the province of the financial elite. But market professionals, along with regulators, are asking whether buyers truly know what they are getting.

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Shipping ports all along the East Coast and Gulf Coast shut down early last week, as the 47,000 members of the International Longshoremen's Association went on strike. But dockworkers and shipping companies came to a temporary deal late Thursday. On the Big Take, Sarah Holder and Bloomberg reporter Laura Curtis talk through the details of the deal, why the White House got involved and who the winners and losers are.

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