In this 1-minute video, we showcase the how and why of what we do with option overlays1 in our active Equity Premium Income ETFs.
Watch to find out how the strategy can enhance income potential and buffer portfolios from market volatility.
Across market scenarios, we employ a differentiated options overlay1 approach in our equity premium income ETFs.
- Generate income: The strategy helps us capture option premiums regularly to enhance income potential. As stock market volatility increases, the potential for incremental income also rises2.
- Adapt to changing market conditions: Resetting a portion of the options on a rolling weekly3 basis allows the strategy to dynamically adjust potential upside and income with changing market volatility. Additionally, the option overlays may potentially add resilience to the portfolio.
Overall, the options overlay1 is a key tool in a multi-pronged approach to generate total return.