iShares High Yield Corporate Bond BuyWrite ETF (HYGW)
BATS BATS Primary Summary
HYGW Chart
HYGW: Avoid This Amortizing ETF
The iShares High Yield Corporate Bond Buywrite Strategy ETF writes covered calls on the HYG ETF to generate high distributions. The fund's strategy results in capped upside and uncapped downside, causing it to underperform the underlying HYG ETF over the long term. Given the monthly rolling of HYGW's covered calls and current low credit spreads, HYGW is likely to see capital losses as the economy weakens in the coming years.
HYGW: Covered Call High-Yield Bond ETF, Outstanding 13.3% Yield, Declining Share Price And Distributions
HYGW offers a strong 13.3% distribution yield by investing in high-yield corporate bonds and writing covered calls. The fund's strategy works best when high-yield rates are flat or increasing, worst when these decrease. At current rates and spreads, I do not foresee any significant decrease in high-yield rates moving forward.
iShares High Yield Corporate Bond BuyWrite ETF Dividends
| HYGW HYGW In 2 weeks Estimated | Monthly | $0.39 Per Share |
| HYGW HYGW 1 weeks ago Paid | Monthly | $0.39 Per Share |
| HYGW HYGW 1 month ago Paid | Monthly | $0.56 Per Share |
| HYGW HYGW 2 months ago Paid | Monthly | $0.35 Per Share |
| HYGW HYGW 3 months ago Paid | Monthly | $0.21 Per Share |
| HYGW HYGW 4 months ago Paid | Monthly | $0.33 Per Share |
iShares High Yield Corporate Bond BuyWrite ETF Earnings
| HYGW HYGW In 2 weeks Estimated | Monthly | $0.39 Per Share |
| HYGW HYGW 1 weeks ago Paid | Monthly | $0.39 Per Share |
| HYGW HYGW 1 month ago Paid | Monthly | $0.56 Per Share |
| HYGW HYGW 2 months ago Paid | Monthly | $0.35 Per Share |
| HYGW HYGW 3 months ago Paid | Monthly | $0.21 Per Share |
| HYGW HYGW 4 months ago Paid | Monthly | $0.33 Per Share |
iShares High Yield Corporate Bond BuyWrite ETF (HYGW) FAQ
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iShares High Yield Corporate Bond BuyWrite ETF Profile
| BATS Exchange | United States Country |
Overview
The company operates within the financial sector, focusing on the sophisticated strategy of writing call options. Its unique approach involves writing call options up to the full amount of shares of the underlying fund it holds, ensuring that these options are "covered" by the long positions in the shares of the underlying fund. This methodology aligns with a conservative yet strategic way to generate returns, utilizing "European-style" call options that are known for their exercise only at expiration, providing a predictable framework for managing risk and potential return.
Products and Services
The company specializes in a specific set of financial instruments and strategies to serve its clients. These are centered around the concept of options trading, particularly through covered calls and the use of European-style call options. Each product or service is designed to leverage the underlying assets' potential while managing risk effectively.
- Covered Call Options Writing:
This service involves the company writing call options up to the full amount of shares of an underlying fund it holds. This method ensures that all written call options are fully covered by the long positions in the shares of the underlying fund, providing a balanced approach to generating income while mitigating potential losses.
- European-Style Call Options:
The use of European-style call options characterizes the company's strategic approach to options trading. Unlike their American-style counterparts, these options can only be exercised at the expiration date, offering a more structured and predictable investment strategy which benefits the company and its investors by minimizing the risks associated with the timing of option exercise.
Contact Information
