BUYW ETF

BUYW is an actively-managed covered call ETF that invests in a portfolio of ETFs and sells covered calls. BUYW has a high expense ratio of 1.31% and has had mixed results since inception. Other covered call ETFs offer stronger performance and lower expenses, making BUYW an unfavorable investment choice.

Main Buywrite ETF opportunistically writes call options on a basket of various ETFs the manager deems to be attractive. BUYW ETF has outperformed in the short term due to a stellar 2022, when the fund avoided losses. However, it is unclear how this performance was achieved. Overall, if we exclude the 2022 performance, the BUYW is a middle-of-the-pack buywrite fund that charges a high expense ratio. I am not confident the 2022 performance is repeatable.

Protection plays were a prominent strategy last year, but the rally during the first half of 2023 is prompting more ETF investors to rethink the growth trade.

Kim Arthur, CEO of Main Management, joins 'Halftime Report' to discuss Buy-Write ETF strategies, international ETFs underperforming this year, and investing in ETFs according to market performance.

VettaFi's vice chairman Tom Lydon discussed the Main BuyWrite ETF (BUYW) on this week's “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” BUYW targets hedged equity strategies, Lydon said.