PBP ETF

The Invesco S&P 500 BuyWrite ETF invests in S&P 500 stocks and sells short-term call options to earn income. While the current yield looks appealing, its price history shows a notable decline when adjusted for inflation, and its distribution history reveals an inconsistent and lower yield. Additionally, other ETFs using similar strategies have done better than PBP in the past two years.

The CBOE S&P 500 2% OTM BuyWrite Index is a covered call strategy that writes call options 2% out of the money. The BXY index has averaged an annual return of 9.91% since June 1988. There is no investable instrument that uses the BXY strategy, but the Invesco S&P 500 BuyWrite ETF is a promising alternative.

For investors seeking momentum, Invesco S&P 500 BuyWrite ETF PBP is probably on the radar. The fund just hit a 52-week high and is up 18.6% from its 52-week low price of $18.56/share.