iShares S&P 500 BuyWrite ETF

IVVW

Market cap $210M

iShares S&P 500 BuyWrite ETF earns a Hold rating within S&P 500-based option income ETFs due to its balanced structure. IVVW's methodology emphasizes NAV retention and capped payouts, providing predictable returns but limiting upside and drawdown protection. The ETF's aggressive yield (16-17% TTM) raises concerns about long-term NAV sustainability despite a structural cap on distributions.

IVVW offers S&P 500 exposure with income from covered calls, but this strategy caps upside in strong bull markets. AI investments, trade deal progress, and reduced geopolitical risks are strong macro tailwinds for the S&P 500 and its constituents. IVVW's covered call approach limits potential gains versus simply holding IVV, especially during periods of robust market growth as we foresee in the near future.

NEW YORK--(BUSINESS WIRE)--BlackRock today announced the launches of the iShares S&P 500 BuyWrite ETF (Cboe: IVVW) and the iShares Russell 2000 BuyWrite ETF (Cboe: IWMW), which seek to generate an attractive monthly income and help investors diversify their income sources. The ETFs provide access to a differentiated source of income by selling monthly call options on their underlying indices – in addition to receiving dividend income – in a single-ticker solution. The Funds expand BlackRock.