IVVW
iShares S&P 500 BuyWrite ETF
📎 Investment Objective
The iShares S&P 500 BuyWrite ETF (IVVW) seeks to track the investment results of an index composed of S&P 500 stocks with a covered call strategy applied.
Overview
ETF tracking iShares S&P 500 BuyWrite ETF
Performance
Price Chart
Investment Summary
📎 Investment Objective
The iShares S&P 500 BuyWrite ETF (IVVW) seeks to track the investment results of an index composed of S&P 500 stocks with a covered call strategy applied.
🎯 Investment Strategy
IVVW seeks to replicate the performance of the CBOE S&P 500 BuyWrite Index, which measures the performance of a hypothetical buy-write strategy on the S&P 500 Index. The strategy involves holding a long position in the stocks of the S&P 500 Index and selling (or 'writing') covered call options on the same index.
✨ Key Features
- Provides exposure to the large-cap U.S. equity market with an income-generating covered call strategy
- Aims to generate income through call option premiums while maintaining equity market participation
- Tracks the CBOE S&P 500 BuyWrite Index, a widely followed benchmark for covered call strategies
- Low expense ratio of 0.00%
⚠️ Primary Risks
- Equity market risk: The fund's value will fluctuate with changes in the stock market
- Option writing risk: The fund's covered call strategy may limit upside potential in rising markets
- Concentration risk: The fund is concentrated in the large-cap U.S. equity market
- Liquidity risk: The fund may have limited trading volume, impacting its ability to sell positions
👤 Best For
IVVW may be suitable for investors seeking equity market exposure with an income-generating component, as well as those looking to diversify their portfolio with a covered call strategy. However, investors should be comfortable with the risks associated with equity and options-based investments.