Eaton Vance Tax-Managed Buy-Write Opportunities Fund

ETV

Market cap $1.64B

September was another strong month for equity indexes despite it historically being a weaker month, meaning we were able to buck that seasonality trend. The Fed cut 25 basis points last month and is expected to cut more going forward, which could help to keep optimism and momentum in equities. Pushing into all-time highs, I tend to allow cash to build up for the next downturn, but I still add every month regardless to help build up my cash flow.

Closed-end funds (CEFs) are the last bargains left on the board. CEFs are often confused with mutual funds and ETFs, but they are different because they often trade at discounts to their net asset values (NAVs).

A plethora of investment options exist for income investors. That includes both closed-end and open-end funds, which can provide significant diversification and professional management. Today, we are highlighting two closed-end funds that can provide diversification and monthly distributions to investors but that are also trading at attractive discounts.

August saw continued gains across major indexes, with RSP and Dow outperforming the tech-heavy benchmarks toward the second half of the month. As the markets continue to hit and trade near all-time highs, now including the Dow Jones hitting all-time highs, I've been continuing to build up my cash position. At the same time, every month I do some buying to keep the income compounding on itself over the long term.

The Eaton Vance Tax-Managed Buy-Write Opportunities Fund has significantly underperformed the S&P 500 in 2025, with a total return of only +3.93% compared to the index's +11%. The fund's buy-write strategy has been negatively impacted by a "V" shaped market recovery. The fund's structure caps upside at only 1.2% with a 15-day average option expiration. Unlike a similar high-volatility period in 2022, ETV has consistently traded at a discount to its net asset value in 2025, suggesting a lack of market demand.

ETV offers an attractive 8.6% yield, making it appealing for income-focused investors, especially retirees seeking higher cash flow than broad equity indices provide. The fund's strategy relies on writing index options, but its heavy technology weighting reduces diversification and increases sector-specific risk. Recent performance lagged the S&P 500, with ETV's total return at 14.15% versus the index's 19.69%, reflecting the fund's income-over-growth tradeoff.

Closed-end funds can help income-focused investors, as in this wrapper, they can often provide higher relative distributions. One way to provide higher distributions is through utilizing a call writing strategy, where they can generate option premiums. Monthly distributions are also appealing to these income investors, and there are a number of opportunities in the CEF wrapper that provide that.

BOSTON--(BUSINESS WIRE)--The Eaton Vance closed-end funds listed below released today the estimated sources of their June distributions (each a “Fund”). This press release is issued as required by the Funds' managed distribution plan (Plan) and an exemptive order received from the U.S. Securities and Exchange Commission. The Board of Trustees has approved the implementation of the Plan to make monthly, as noted below, cash distributions to common shareholders, stated in terms of a fixed amount.

The Eaton Vance Tax-Managed Buy-Write Opportunities Fund has been a reliable way to transform equity market returns into dividends. Elevated volatility, as indicated by the VIX index, has returned, making the current macro environment more favorable for ETV. The resurgence of volatility above 20 is reminiscent of 2022, impacting the risk/return profile of ETV.

The Eaton Vance Tax-Managed Buy-Write Opportunities Fund (ETV) offers a monthly distribution yield of 8.91% and utilizes a call-writing strategy on the S&P 500 and Nasdaq indexes. ETV's discount has narrowed, but with recent market volatility, it is a potentially attractive option for income-focused investors. With a portfolio weighted towards tech stocks, that has contributed to its recent pressure.