2024-04-11 13:10:18 ET
Summary
- Parametric Equity Premium Income ETF is a new call-writing fund that aims to provide monthly distributions to its investors.
- The PAPI ETF has a lower expense ratio compared to the average ETF and is still actively managed.
- The fund's portfolio is quite diversified and evenly split across sectors, minimizing single-holding risk.
- I initially believed this may have been a suitable alternative to Eaton Vance's call writing CEFs, but they took this fund in a slightly different direction.
Written by Nick Ackerman, co-produced by Stanford Chemist.
There have been several new call-writing ETF launches over the last several years. These funds are designed to provide higher relative distributions to income-focused investors. They primarily do this by investing in a diversified basket of equity securities that provide regular dividends. Another source of these distributions paid out to investors comes from the option premiums the funds can receive from writing options....
Read the full article on Seeking Alpha
For further details see:
PAPI: A New Call Writing ETF