CVRD
Madison Covered Call ETF
📎 Investment Objective
The Madison Covered Call ETF (CVRD) seeks to provide investment results that, before fees and expenses, correspond generally to the performance of the CBOE S&P 500 BuyWrite Index.
Overview
ETF tracking Madison Covered Call ETF
Performance
Price Chart
Investment Summary
📎 Investment Objective
The Madison Covered Call ETF (CVRD) seeks to provide investment results that, before fees and expenses, correspond generally to the performance of the CBOE S&P 500 BuyWrite Index.
🎯 Investment Strategy
The ETF invests in the component securities of the S&P 500 Index and writes (sells) covered call options on the same index. This strategy aims to generate income from the option premiums received, while still providing exposure to the underlying S&P 500 stocks.
✨ Key Features
- Tracks the CBOE S&P 500 BuyWrite Index, a widely followed covered call strategy index
- Invests in the stocks of the S&P 500 and writes call options on the same index
- Seeks to generate income from option premiums while maintaining equity market exposure
- Low expense ratio of 0.00%
⚠️ Primary Risks
- Market risk: The value of the ETF's holdings may decline due to general market and economic conditions
- Covered call risk: The ETF's covered call strategy may limit the upside potential if the underlying stocks rise significantly
- Liquidity risk: The ETF may have difficulty trading certain securities at an advantageous time or price
- Tracking error risk: The ETF may not perfectly track the performance of its underlying index
👤 Best For
The Madison Covered Call ETF may be suitable for investors seeking a conservative, income-generating strategy that provides exposure to the large-cap U.S. equity market. It may be particularly appealing to investors with a moderate risk tolerance who are looking to generate additional income from their equity investments.