Ishares High Yield Corporate Bond Buywrite Strategy ETF

HYGW uses a fund-of-fund approach to passively track an index that measures the performance of holding shares of the iShares High Yield Corporate Bond ETF and writing one-month call options against the shares.

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.

HYGW: Covered Call High-Yield Bond ETF, Outstanding 13.3% Yield, Declining Share Price And Distributions

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iShares 20+ Year Treasury Bond BuyWrite Strategy ETF

The U.S. ETF industry continues to evolve. In the first 10 months of 2023, fixed income ETFs gathered more than 40% share of the net inflows, despite representing just 20% share of the market.

Recapping BlackRock's Strong Fixed Income Flows

BlackRock's iShares High Yield Corporate Bond BuyWrite Strategy ETF offers a super-high yield. However, there are several downsides to the ETF that income investors ought to consider.

Should You Buy This ETF With a Jaw-Dropping 16% Yield?

HYGW invests in high-yield corporate bonds and sells covered calls. Doing so leads to a massive 16.7% yield, but long-term capital losses and distribution cuts. An overview of the fund follows.

HYGW: High-Yield Bond Covered Call ETF, Strong 16.7% Yield

iShares High Yield Corporate Bond Buywrite Strategy ETF is one of a trio of BlackRock fixed-income buy-write or covered call ETFs. The fund holds a position in the iShares iBoxx $ High Yield Corporate Bond ETF and sells monthly at-the-money call options on it. Getting to grips with the fund's yield takes a bit of work, but, overall, it could easily improve on the 8.6% yield of its underlying holding.

HYGW: This Buy-Write Bond Fund Could Deliver Sustainable Double-Digit Yields

Covered call funds are becoming very popular for income-seeking investors. These funds are not limited to stocks.

HYGW: High Yield Bonds Meet Covered Calls For A 15% Yield

BlackRock recently launched three BuyWrite fixed income ETFs. These provide investors with strong, double-digit dividend yields, but should see lower share prices and capital losses long-term.

HYGW: Double-Digit Forward Yields, Long-Term Capital Depletion

On August 22, BlackRock Inc (NYSE: BLK) unveiled three new fixed income exchange traded funds, offering investors a BuyWrite strategy on fixed income assets.

BlackRock Announces 3 New BuyWrite Fixed Income ETFs For The Savvy Investor

NEW YORK--(BUSINESS WIRE)--BlackRock today launched a first-of-its-kind suite of fixed income ETFs that provide access to buy-write investment strategies on baskets of fixed income securities: the iShares 20+ Year Treasury Bond BuyWrite Strategy ETF (Cboe: TLTW), iShares High Yield Corporate Bond BuyWrite Strategy ETF (Cboe: HYGW) and the iShares Investment Grade Corporate Bond BuyWrite Strategy ETF (Cboe: LQDW). Each ETF packages two potential income sources into one ticker – premiums generate

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