Those who are looking to adopt this method often focus on low-risk investments. These returns could be dividends or coupon payments. Sophisticated institutions, financial professionals and. Aggregate Bond ETF ( NYSE Arca: AGRH ), and the iShares Inflation Hedged U.S. All types of investors are recognizing that bond ETFs can help modernize fixed income portfolios. The iShares Bond BuyWrite ETFs introduce these capabilities to fixed income, pioneering new possibilities for an asset class sitting at the center of so many long-term portfolios. Fixed income investing focuses on investments that pay a return on a fixed schedule. iShares has launched three new fixed income ETFs on the NYSE Arca today: the iShares Inflation Hedged High Yield Bond ETF ( NYSE Arca: HYGI ), the iShares Interest Rate Hedged U.S. The new suite of fixed income products is comprised of the iShares 20+ Year Treasury Bond BuyWrite Strategy ETF (TLTW), the iShares High Yield Corporate. The idea of the strategy is to generate income from option premiums.Ĭarolyn Weinberg, Global Head of Product for ETF and Index Investments at BlackRock stated: “Market participants have used a buy-write strategy on equities since options were first listed more than 50 years ago. London Stock Exchange welcomes Franklin Templeton’s first ETFs in Europe. It has a track record going back to 2006, and overall it’s been a great monthly dividend ETF to own. WisdomTree offers a wide range of funds, and this monthly dividend ETF has low fees. The underlying ETFs used are the iShares 20+ Year Treasury Bond ETF ( TLT), iShares iBoxx $ High Yield Corporate Bond ETF ( HYG), and the iShares iBoxx $ Investment Grade Corporate Bond ETF ( LQD).Ī buy-write strategy is when a market participant buys a security, with options available on it and concurrently writes a call option on that security. High Dividend Fund (NYSE: DHS) Dividend Yield: 2.26. Hapabapa/iStock Editorial via Getty ImagesīlackRock ( NYSE: BLK) unveiled a grouping of fixed income exchange traded funds that offer the investment community admission to buy-write investment strategies on a basket of fixed income securities.īlackRock’s new ETFs are as follows: The iShares 20+ Year Treasury Bond BuyWrite Strategy ETF ( BATS: TLTW ), iShares High Yield Corporate Bond BuyWrite Strategy ETF ( BATS: HYGW ), and the iShares Investment Grade Corporate Bond BuyWrite Strategy ETF ( BATS: LQDW ).Įach of the three ETFs packages two potential income sources into one ticker from premiums generated by selling monthly call options on the underlying ETFs and the yields from each of the underlying ETFs themselves. This material is not a recommendation to buy, sell, hold, or roll over any asset, adopt an investment strategy, retain a specific investment manager or use a.