Direxion's GOIB Aims to Juice Alphabet Income with Twice-Monthly Distributions

The largest internet search provider and prominent player in artificial intelligence, Google's parent company Alphabet (GOOGL), may not be a big dividend name, but there are ways to grab more income from this widely followed stock. The Direxion GOOGL Defined Income Boost ETF (GOIB) is designed to significantly juice income propositions with low- and no-yielding growth stocks like Alphabet.

The new ETF was introduced in late July as part of a suite of six single-stock ETFs, all aimed at boosting income. Unlike traditional dividend stocks, which pay on a quarterly basis, GOIB distributes income twice a month without giving up the stock's potential performance. The fund targets a 20% annual distribution yield.

GOIB uses high volatility to generate income and is not sensitive to interest rate gyrations, making it an alternative income fund in the current climate. By using delta hedging and an unwind feature, the funds may close the option position if the call reaches a specified threshold, retaining their exposure to the underlying stock.