Covered call ETFs were created to appeal to investors that want income through dividends rather than waiting for an asset to increase in value and then realize a profit by selling it. Covered call ETFs are frequently used by investors that wants to create a fairly steady stream of revenue. Instead of simply purchasing stocks in a corporation and wait for dividends from that specific company, you can invest in covered call ETFs and spread your risk over many companies. If you want to spread your risk even more, you can put together a portfolio of share based ETFs, index tracking ETFs, commodity based ETFs, foreign exchange based ETFs, etc.
Generally speaking, buying ETFs is popular among pretty passive investors rather than day-traders and other short-term speculators. You can make an investment in ETFs and then hopefully receive a steady stream of income over time, rather than trying to maximize your daily profit buy making quick buys and sells and constantly opening and closing positions.
Compared to naked call (non-covered) ETFs, the covered call ETF is a less risky investment. For some, this also makes it less appealing. For others, the lower risk is the main attraction. It all comes down to personal preferences and goals, and also the composition of the rest of your investment portfolio. Sometimes it is actually the adrenaline-junkie day trader that purchases ETF shares to create a more balanced overall money making strategy!
If you contact a financial broker that makes a commission based profit every time you make a purchase or a sell, this adviser will probably not recommend ETFs because people who invest in ETFs can receive an income without having to sell off their assets. If you just remain passive, enjoying the steady stream of income from you ETF, there will be no profit for a financial broker that makes a commission on transactions.
I do not recommend that you invest in ETFs if you have high interest debt. In this situation it is usually best to pay of your debt first and only invest once you paid of all your high interest loans. Check to see if you can convert your high rate debt to low interest debt before you decide whether to invest or pay of your debt. Use a loan comparison website such as this one to check to see where you can find the cheapest loan. You should also research which types of loans you can qualify for and whether you can lower your monthly payments by collecting all your debt in one new loan.