The Horizons S&P 500 Covered Call ETF (NYSEArca: HSPX), which tracks the S&P 500 Stock Covered Call Index, is one of the newer entrants in the covered call ETF space. HSPX is down 2.8% year-to-date.
Additionally, Horizons ETF offers a more tactical approach with the Horizons Financial Select Sector Covered Call ETF (NYSEArca: HFIN), which tracks the S&P Financial Select Sector Covered Call Index. HFIN is down 3.2% year-to-date.
The AdvisorShares STAR Global Buy-Write ETF (NYSEArca: VEGA) is an actively managed option that takes on a global approach. VEGA is down 1.3% year-to-date. First Trust also recently came out with two actively managed ETFs that employ a covered call option strategy, including the First Trust High Income ETF (Nasdaq: FTHI) and the First Trust Low Beta Income ETF (Nasdaq: FTLB). [A New Covered Call ETF Comes to Town]
The exchange traded note iPath CBOE S&P 500 BuyWrite ETN (NYSEArca: BWV) is down 0.7% year-to-date. Investors should be aware that ETNs are not ETFs as the notes are a type of debt instrument issued by an underwriting bank and subject to the credit worthiness of the bank.
Recently, Recon Capital Advisors came out with a covered call ETF centered around the Nasdaq-100, the Recon Capital NASDAQ-100 Covered Call ETF (Nasdaq: QYLD). QYLD is down 0.6% year-to-date, whereas the Nasdaq has declined 1.7%. [The Nasdaq-100 Covered Call ETF]
For more information on the covered call strategy, visit our buywrite category.