UBS AM launches four defensive equity ETFs tracking option-selling indices

Put write and covered call strategies

UBS Asset Management has launched four ETFs tracking option-selling indices, offering investors a "defensive view" on US and European equities.

The funds will target either the S&P 500 and the EURO STOXX 50 and will each be offered in a 'covered call' or a 'put write' strategy, with a fee of 0.29% for the US equity ETFs or 0.26% for the European equity ETFs. UBS AM debuts global credit ESG ETF A covered call approach utilises a long position in the underlying equity index, combined with the weekly sale of call options on the same index. The sale generates a return through the premiums received, but any index performance above the price set on the option is sacrificed. This aims to generate returns through income from premiums...