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The WisdomTree PutWrite Strategy Fund ETF offers monthly income by selling put options on the S&P 500, trading growth potential for steady yields. PUTW's strategy limits upside in bull markets, underperforming the S&P 500, but benefits from high volatility, enhancing income through higher option premiums. Suitable for income-focused investors, particularly retirees, but less ideal for long-term capital growth due to capped upside and potential capital erosion.
Long-term bond yields are still elevated. The Federal Reserve will likely disappoint regarding 2024 rate cuts.
WisdomTree PutWrite Strategy Fund ETF is an options-based income play similar to covered call funds. The fund's distribution history has been sporadic and unpredictable, making it difficult to confidently rate it as a buy. The fund recently switched from annual to monthly distributions, which is a right step to make distributions more stable and predictable.
PUTW ETF writes put options on the SPY ETF while investing proceeds into treasuries. Put/write strategies have similar payoffs as covered calls. However, in rising markets, put/write may outperform as the written puts tend to expire worthless.
FAQ
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