The $248.8 million Powershares S&P 500 BuyWrite Portfolio (NYSEArca: PBP) has almost doubled the returns offered by the S&P 500 this year. PBP follows the CBOE S&P 500 BuyWrite Index. Both PBP and HSPX could garner increased attention if market volatility increases as 2014 moves.
With momentum sectors such as biotech and social media being taken to task on a near daily basis, there is another covered call ETF for investors to consider, particularly because so many high beta stocks trade on the Nasdaq. The Recon Capital NASDAQ-100 Covered Call ETF (NasdaqGM: QYLD) debuted last year and can help investors deal with some of the volatility associated with a market decline caused by high momentum stocks. [A New Covered Call ETF Debuts]
Horizons S&P 500 Covered Call ETF
ETF Trends editorial team contributed to this post.