New “BuyWrite ETF” Hits The Market

AdvisorShares added another actively-managed ETF to its lineup this week, rolling out a fund that employs a “covered call” overlay to a global asset allocation strategy. The new STAR Global Buy-Write ETF (VEGA) will hold a portfolio of exchange-traded products while simultaneously writing call options against each position. VEGA also has the flexibility to use protective put options in low volatility environments to manage downside risk. VEGA will be subadvised by Partnervest Advisory Services; James Herrell and Kenneth Hyman will be the portfolio managers. Covered Call 101 Covered call strategies offer an opportunity to lower overall volatility and generate streams of current income in certain environments. This strategy combines traditional long positions (e.g. holding the S&P 500) with a short position in call options on those same assets. Writing call options allows the portfolio to generate additional income, as it will take in the premium on the options at [...] Click here to read the original article on ETFdb.com. Related Posts: ETF Pipeline: Global BuyWrite ETF On The Horizon ETF Ideas For A Flat Market Covered Call ETFs: The “Write” Play Now? 101 ETF Lessons Every Financial Advisor Should Learn Tax Efficiency Report Card