SPXX - SPXX: Downgrade On Market Valuations

2024-06-03 08:56:50 ET

Summary

• Nuveen S&P 500 Dynamic Overwrite Fund writes call options on the S&P 500 Index to deliver attractive distributions.
• The SPXX fund has exceeded expectations in recent months, delivering 65% upside capture since December.
• While its 9% discount to NAV remains attractive, I worry the fund does not offer enough downside protection given stretched valuations in equity markets.

A few months ago, I wrote a bullish article on the Nuveen S&P 500 Dynamic Overwrite Fund ( SPXX ), noting that the SPXX fund was trading at an attractive 9% discount to NAV with a time-tested strategy....

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