Madison Covered Call ETF

Frequently Asked Questions About CVRD

What does CVRD invest in?

The Madison Covered Call ETF strives to deliver reliable overall investment performance. A secondary goal is to generate substantial income through both company dividends and the premiums earned from option trading. To achieve these aims, the fund initially allocates capital to shares of well-established large and mid-sized companies, specifically those believed to be trading at an attractive price when compared to their future growth prospects. Following this, the ETF systematically sells covered call options on a significant portion of these underlying stock investments, typically under normal market circumstances.

What is the expense ratio of CVRD?

Madison Covered Call ETF (CVRD) charges an expense ratio of 0.92%. This is the annual fee deducted from fund assets to cover management and operations.

What is CVRD's distribution yield?

CVRD's trailing-twelve-month yield is 7.82%, calculated from the sum of distributions over the past year divided by the current price.

How does CVRD's covered-call strategy work?

CVRD sells call options against the stocks (or index) it holds, collecting premium income that gets passed through to shareholders as distributions. The strategy generates above-market income in flat or rising markets but caps upside — when the underlying rallies past the strike, the gains above the strike go to the option buyer, not the fund.

How big is CVRD?

Madison Covered Call ETF (CVRD) manages $32.8M in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure — funds below ~$50M are at higher risk of liquidation.

Is CVRD actively managed or an index fund?

CVRD's management style is described in the fund's prospectus. See the description on the Summary tab for the published strategy.