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For investors seeking momentum, Main BuyWrite ETF BUYW is probably on the radar now. The fund just hit a 52-week high and is up 5.1% from its 52-week low price of $13.84 per share.
SAN FRANCISCO--(BUSINESS WIRE)--Main Management ETF Advisors ETFs BUYW, SECT, TMAT and INTL join LPL Financial's ETF No Transaction Fee (NTF) Sponsorship Program.
BUYW is an actively-managed covered call ETF that invests in a portfolio of ETFs and sells covered calls. BUYW has a high expense ratio of 1.31% and has had mixed results since inception. Other covered call ETFs offer stronger performance and lower expenses, making BUYW an unfavorable investment choice.
Main Buywrite ETF opportunistically writes call options on a basket of various ETFs the manager deems to be attractive. BUYW ETF has outperformed in the short term due to a stellar 2022, when the fund avoided losses. However, it is unclear how this performance was achieved. Overall, if we exclude the 2022 performance, the BUYW is a middle-of-the-pack buywrite fund that charges a high expense ratio. I am not confident the 2022 performance is repeatable.
Protection plays were a prominent strategy last year, but the rally during the first half of 2023 is prompting more ETF investors to rethink the growth trade.
VettaFi's vice chairman Tom Lydon discussed the Main BuyWrite ETF (BUYW) on this week's “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” BUYW targets hedged equity strategies, Lydon said.
The Main BuyWrite Fund is an exchange traded fund. The vehicle employs both a covered-call strategy and a cash-covered put writing one.
Main Management Fund Advisors has recently put out an ETF on BuyWrite concept.
SEC filings for BUYW aren't indexed yet — common for recently launched funds. Browse the issuer's filings on SEC EDGAR directly.