To The Moon

🌟🌟🌟BlackRock has just launched a brand new ETF on Friday called $iShares S&P 500 BuyWrite ETF(IVVW)$ that uses covered call options strategies similar to JPMorgan's popular JEPI ETF.

IWVV ETF seeks to generate an attractive monthly income by selling monthly covered call options on an index that reflects a strategy of holding the iShares Core S&P 500 ETF (IVV)

The Top 10 holdings include $Microsoft(MSFT)$  , $Apple(AAPL)$  , $NVIDIA Corp(NVDA)$  , Amazon, $Meta Platforms, Inc.(META)$  , $Alphabet(GOOG)$  , Berkshire Hathaway and Eli Lilly.

While IVVW ETF is not introducing a new strategy, its expense ratio at 0.25% is one of the lowest for an actively managed ETF.  In contrast JEPI ETF expense ratio is now 0.40%.

Covered Call strategies have grown in popularity as investors seek higher yield. The most popular Covered Call ETF is JEPI ETF which has a asset under management of USD 33 billion.   JEPI is an actively managed Covered Call Strategy on the S&P500 too.  JEPI had an inflow of funds of USD 22 billion just in 2023 alone.

What I like about IVVW is that apart from receiving monthly income from the monthly call options strategy, it will also receive dividend income every 3 months. 

I also like the Fund Manager which is BlackRock, the world's largest fund manager with more than 20 years' experience, a global line up of 1400 plus ETFs and USD 3.5 Trillion in Assets Under Management at December 31 2023.  IShares funds like IVVW ETF are powered by the expert portfolio and risk management of BlackRock.   

Covered Call Strategy is normally the domain of Big Institutions and Experienced Traders.  But with IVVW ETF, a small investor like me can also have access to such strategies for just the cost of an ETF. 

I love to receive dividends and now I have an new ETF - the iShares IVVW ETF to add to my portfolio as an additional source of passive income.   How good is that! 

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