Nuveen S&P 500 Buy-Write Income Fund

Nuveen S&P 500 Buy-Write Income Fund is a closed-end investment trust, which invests in an equity portfolio of securities. It aims to seek total return with less volatility than the S&P 500 Index. The company was founded on October 26, 2004 and is headquartered in Chicago, IL.

BXMX is a buy-write CEF that underperforms in bull markets but buffers downside in bear markets with high option premiums. The fund's structural features limit upside participation to 2% monthly, making it less suitable for violent equity rallies. BXMX trades at a -9% discount to NAV, with a countercyclical premium/discount feature influenced by market regimes.

BXMX: A Disappointing 2024 For This Equity CEF

Kohl's

Ladder Capital

OneMain Hld

Plains All American Pipeline

Pioneer High Income Trust

Starwood Property

TFS Financial

Vale S.A.

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The Nuveen S&P 500 Buy-Write Income Fund (BXMX) has seen its discount widen substantially, making it a more tempting investment choice. BXMX is a call-writing fund that writes calls against the S&P 500 Index at a target of 100% overwrite. Thanks to the call-writing strategy, the fund offers investors a ~7.5% distribution rate that is paid quarterly.

BXMX: Discount Widens To A Tempting Level

Nuveen S&P 500 Buy-Write Income Fund uses options to reduce volatility and increase income from its portfolio of global equities. The fund's top holdings are primarily large-cap stocks, with calls written on the entire equity portfolio. We tell you why this is a great time to switch to this fund if you own XYLD, a popular covered call ETF.

BXMX: Covered Call Fund - A Superior Choice To XYLD

Nuveen Dow 30 Dynamic Overwrite Fund

Nuveen Core Equity Alpha Fund

Nuveen Real Estate Income Fund

Nuveen NASDAQ 100 Dynamic Overwrite Fund

Nuveen S&P 500 Dynamic Overwrite Fund

NEW YORK--(BUSINESS WIRE)--The 19(a) distribution notices for six Nuveen closed-end funds are now available. These informational notices provide further details on the sources of the funds' regular quarterly distributions and follows the most recent quarterly distribution announcements. The full text of these notices is available below or on the Nuveen website via Distribution Source Estimates. Important Information Regarding Distributions March 28, 2024: THIS NOTICE IS FOR INFORMATIONAL PURPOS.

Six Nuveen Closed-End Funds Announce Availability of 19(a) Notices

Nuveen S&P 500 Buy-Write Income Fund focuses on generating income through covered calls, offering a distribution yield of 7.2%. Covered call funds have gained popularity for their ability to generate income in all market conditions. Virtually all of this fund's total returns come from distributions and there is no dividend growth so it will only suit certain investors.

BXMX: Reliable Income But Don't Expect Any Growth

Global X S&P 500 Covered Call ETF

BXMX and XYLD write covered calls on the index as an offset to their equity holdings. BXMX is a closed end fund, whereas XYLD is an exchange traded fund. We review them on key characteristics, performance, and yield and provide our pick between the two.

Why We Prefer BXMX's 7.7% Yield Over XYLD's 11.3%

The Nuveen S&P 500 Buy-Write Income Fund writes index call options to enhance risk-adjusted returns and fund an attractive distribution yield. The fund has delivered solid historical performance with average annual returns of 10.0%/6.9%/7.5%/6.8% over 3/5/10/15 years, sufficient to fund its 7.3% distribution. However, investing in BXMX may lead to long-term underperformance compared to passive market funds like the SPY ETF.

BXMX: Solid Buy-Write Fund Yielding 7%

The Nuveen S&P 500 Buy-Write Income Fund is currently trading at an attractive discount, dropping from the premium when we last covered the fund. The fund aims to mirror the S&P 500 Index and generates options premium, with a nearly 100% overwrite. BXMX has seen its distribution change many times in its history, but the latest payout seems to be at a reasonable level where it could be maintained for now.

BXMX: Discount Opens Up

BXMX is an equity buy-write closed-end fund. The CEF has a 7% dividend yield and has managed to outperform most buy-write funds this year, including the vaunted JP Morgan JEPI fund.

BXMX: Buy-Write CEF Outperforming JEPI, 7% Yield

Nuveen Real Asset Income & Growth Fund

Nuveen Dynamic Municipal Opportunities Fund

Nuveen Multi-Asset Income Fund

Nuveen Core Plus Impact Fund

NEW YORK--(BUSINESS WIRE)--The 19(a) distribution notices for ten Nuveen closed-end funds are now available. These informational notices provide further details on the sources of the funds' regular monthly or quarterly distributions and follows the most recent monthly and quarterly distribution announcements. The full text of these notices is available below or on the Nuveen website via Distribution Source Estimates.

Ten Nuveen Closed-End Funds Announce Availability of 19(a) Notices

Nuveen S&P 500 Buy-Write Income Fund is an equity buy-write CEF. The fund aims to replicate the S&P 500 via its holdings and then writes covered calls on the portfolio.

BXMX: Range Bound Markets Are Ideal For This Buy Write CEF

The S&P 500 is down YTD, but BXMX has provided some downside protection through their call writing. One problem with that is that the share price has become relatively expensive, pushing to a premium.

BXMX: Call Writing On The S&P 500, But Elevated Premium

AllianceBernstein Global High Income Fund Inc

BlackRock Enhanced Equity Dividend Trust

BlackRock Science & Technology

BlackRock Credit Allocation Income Trust

DoubleLine Income Solutions Fund

Eaton Vance Tax-Managed Buy-Write Opportunities Fund

Eaton Vance Tax-Managed Diversified Equity Income Fund

Eaton Vance Limited Duration Income Fund

Eaton Vance Tax-Managed Global Diversified Equity Income Fund

Aberdeen Asia-Pacific Income Fund Inc

First Trust Intermediate Duration Preferred & Income Fund

Highland Income Fund

BlackRock Corporate High Yield Fund

Nuveen Preferred & Income Opportunities Fund

Nuveen Preferred & Income Securities Fund

Nuveen Credit Strategies Income Fund

Virtus Dividend Interest & Premium Strategy Fund

PIMCO Dynamic Income Fund

PIMCO Dynamic Income Opportunities Fund

After the Fed hiked interest rates for the fourth time this year, closed-end fund investors may wonder how their income will be affected. Past cycles have shown that valuations fall ahead of time in anticipation of rising rates.

Income Opportunities: CEFs And Rising Rates

BXMX is a CEF from the buy-write suite of products. The CEF pays income on a quarterly basis versus the monthly distributions we see for other funds in the space.

Nuveen S&P 500 Buy-Write Income Fund, 7.2% Yield

5.9% dividend yield from this equity "buy-write" CEF. The fund has quarterly rather than monthly distributions.

BXMX: A 5.9% Yielding Vehicle For Rangebound Markets

With income investments so pricey, investors might consider boosting the current yield of their portfolio by diversifying into higher-yielding investments.

BXMX: A Supplement To Your DGI Portfolio

This fund has come a long way since it was originally added to the portfolio.

BXMX: An Overwrite Strategy Focused On The S&P 500

BlackRock Enhanced International Dividend Trust

BlackRock Enhanced Capital and Income Fund

Eaton Vance Enhanced Equity Income Fund II

Eaton Vance Tax-Managed Global Buy-Write Opportunities Fund

Voya Natural Resources Equity Income Fund

SPDR S&P 500 ETF Trust

Columbia Seligman Premium Technology Growth Func Inc

The current environment of expensive equity valuations and high implied volatility is particularly attractive for covered call funds relative to outright equity exposure. We take a look at the different decision points for investors in the sector such as benchmark tilt, call overwrite percentage, and equity benchmark drag.

A Ripe Environment For Covered Call CEFs

Buy-write funds have become an increasingly popular way to have your cake and eat it too. We examine the returns of Nuveen S&P 500 Buy-Write Income Fund.

BXMX: A Good Alternative To Euphoric Indices

MFS Intermediate High Income Fund

Allspring Income Opportunities Fund

Allspring Global Dividend Opportunity Fund

Wells Fargo Multi-Sector Income Fund

Wells Fargo Utilities and High Income Fund

Sprott Focus Trust

India Fund Inc

Nuveen Diversified Dividend And Income Fund

Nuveen Tax-Advantaged Total Return Strategy Fund

Nuveen Tax-Advantaged Dividend Growth Fund

MFS Charter Income Trust

MFS Special Value Trust

MFS Government Markets Income Trust

MFS Intermediate Income Trust

MFS Multimarket Income Trust

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

RiverNorth Opportunities Fund, Inc.

Royce Micro-Cap Trust

Royce Value Trust

Some CEFs have managed distribution policies that are linked directly or indirectly to their NAVs, allowing investors to forecast changes in distributions with varying accuracy. Recent volatility has already caused some CEFs to lower their distributions as a result of the March drawdown, causing their discounts to widen relative to their sectors.

Preparing For Distribution Changes For CEFs With MDPs

BlackRock Enhanced Global Dividend Trust

Eaton Vance Tax-Advantaged Bond & Opportunity Stategies Fund

All three funds highlighted today with a 'Buy' rating are call writing funds.

Closed-End Funds: 3 'Buy' Rated Covered Call Funds

It’s the million-dollar question these days: how can this market be up double digits in an economy like this?

This High-Yield CEF Pays 7.2% (With Upside)

The four option-based funds by Nuveen include; BXMX, SPXX, DIAX, and QQQX.

Closed-End Funds: Overview Of Nuveen's Option-Based Funds

What are we income-seekers to do after this latest pullback? Buy more? Sit on the sidelines?

News for Nuveen S&P 500 Buy-Write Income Fund ETF (BXMX)