ETV And FFA: Call Writing Funds Generating High Distributions For Investors
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The article discusses two closed-end funds, Eaton Vance Tax-Managed Buy-Write Opportunities Fund (ETV) and First Trust Enhanced Equity Income Fund (FFA), which use covered call strategies to generate high distribution yields. ETV focuses on a tech-heavy portfolio with a distribution yield of 8.25%, while FFA also has a tech tilt and offers a 6.86% yield.
December 01, 2024 | 11:15 am
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Eaton Vance Tax-Managed Buy-Write Opportunities Fund (ETV) uses a tech-heavy portfolio and covered call strategy to offer an 8.25% distribution yield.
ETV's strategy of writing at-the-money options on a tech-heavy portfolio provides a high distribution yield of 8.25%, which is attractive to income-focused investors. This could lead to increased interest and potential price appreciation in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
First Trust Enhanced Equity Income Fund (FFA) employs an overwrite strategy with a tech tilt, offering a 6.86% distribution yield.
FFA's use of an overwrite strategy with a tech focus results in a 6.86% distribution yield, appealing to investors seeking income. This could enhance demand and support the fund's price in the short term.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 100