The options-based funds have provided attractive yield opportunities for income investors. Specifically, the average distribution yield has consistently remained above 5.0% since 2006, according to the white paper. Looking at the ETF options, PBP has a 5.05% 12-month yield, HSPX has a 2.96% 12-month yield, FTHI has a 4.47% 12-month yield, FTLB has a 3.67% 12-month yield, QYLD has a 11.08% 12-month yield and HVPW has a 9.42% 12-month yield.
Contrary to conventional wisdom, option-based strategies have offered lower risk-adjusted returns, with lower annual standard deviations than Treasuries, the S&P 500, the MSCI EAFE and the S&P GSCI since 2000, Daily Alts writes.
There were just 10 option-based strategies available at the turn of the millennium, but the number of funds have jumped, with a number of recent ETF additions over the past few years.
For more information on options-based strategies, visit our buywrite category.
Max Chen contributed to this article.