IVVW: A 9.83% Yielding S&P 500 Covered Call ETF With the Lowest Fees
Covered call funds are getting cheaper and cheaper.
When investors like Warren Buffett advise to invest in low-cost S&P 500 index funds, it isn’t necessarily because they think fund managers are incompetent.
It’s that beating the market is already tricky, and even when you have a fund manager who beats it, it’s unlikely that you will beat the market after paying the management fees.
That’s why a crucial part of Buffett’s advice is to invest in low-cost index funds. The fewer fees you have to pay, the higher the returns.
So why did I tell this story?
Well, iShares, an ETF provider under BlackRock, recently launched IVVW, the iShares S&P 500 BuyWrite ETF, and used its size to launch a covered call fund with the lowest fees in the world.
With an expense ratio of 0.25%, it’s about ten basis points less expensive than the next cheapest covered call fund.
Do these lower fees mean IVVW should replace your other S&P 500-covered call funds?
