|Bid||21.5600 x 700|
|Ask||21.5800 x 300|
|Day's Range||21.5600 - 21.5899|
|52 Week Range||21.2900 - 23.0000|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.75%|
Options strategies aren't used very often in the exchange-traded fund world. There are only nine ETFs that regularly use options, with total assets under management of a combined $800 million—small potatoes in the $3 trillion ETF industry. But that could be changing. Strong inflows into one options-linked ETF this year suggests investors may be taking a closer look at these products as they consider new ways to generate income and hedge against downside risk in a market that is trading at rich valuations.
Worried about a pullback? I don’t blame you. But you shouldn’t stash your portfolio in cash when you can bank this 10% dividend and be protect yourself from a drop in the stock market.
Investors can use option-writing funds to take advantage of the volatility risk premium and to diversify their equity portfolio risk.
While I generally speak at institutional- or advisor-focused conferences on ETF topics, I make a point to do at least one Money Show event a year. If you’re not familiar with the Money Show brand, it’s a series of events specifically targeting active individual investors. These are huge, cacophonous events full of everything from firms hawking cannabis investment newsletters to sage advice from big-league market pundits.