PUTW ETF

Embrace flexibility in investing to adapt to evolving markets and avoid the pitfalls of recency bias and overconfidence. PUTW is not as well known as JEPI and other option-driven ETFs, but it has kept pace and offers a different style that appeals to me. I own it in my portfolio, have for a while and it is one of my larger holdings.

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.