A covered call is an investment strategy used to generate income and potentially hedge against downside risk. It involves buying a stock or a basket of stocks and then selling or writing call options on those same assets.

A lucrative option for now could be the Buy-Write strategy, which provides consistent income from the premiums received from writing call options.

A default on its debt would likely mean a recession for the U.S. economy. In such a scenario, investors should apply some hedging techniques to their equity portfolio.

The Hamilton Enhanced U.S. Covered Call ETF is a fund of funds, which means its portfolio consists of shares of other ETFs. HYLD owns a portfolio of U.S.-listed ETFs that use covered call strategies to generate income.

For the fund-flows week ended Wednesday, April 27, investors turned a cold shoulder to equity mutual funds and ETFs, redeeming $7.6 billion and $1.2 billion, respectively.