Madison Covered Call ETF
A high-quality, high-conviction equity portfolio with an active, single-stock option overlay to capture growth and income.
Objective and Strategy
The Covered Call ETF seeks to provide consistent total return and, secondarily, to produce a high level of income and gains from option premiums and dividends. To pursue this objective, the ETF first invests in common stocks of large and midcap companies that we believe are selling at a reasonable price in relation to their long-term growth rate. Then, under normal market conditions, the ETF writes (sells) covered call options on a substantial portion of its portfolio securities.
Portfolio Management
Why Madison Covered Call ETF
- Covered call-writing strategy provides a diversified income stream with the potential for capital appreciation.
- High-quality, high-conviction stock investing with an active, single-stock options overlay.
- Premiums from call options help offset potential market losses, while out-of-the-money call writing allows for upside participation.
Key Highlights (As of Thursday April 25, 2024)
Ticker |
CVRD |
Exchange |
NYSE-Arca |
NAV |
19.41 |
Change($) |
-0.11 |
Market Price |
$19.38 |
Premium/Discount |
-0.17 |
30-Day Median Bid/Ask Spread |
0.62 |
Expense Ratio |
0.90 |
CUSIP |
557441409 |
Inception Date |
08/21/23 |
Benchmark(s) |
S&P 500CBOE S&P 500 BuyWrite BXM |
Performance
Returns for periods of less than one year are not annualized.
Portfolio Highlights
Top Ten Fund Holdings (As of 04/29/24)
US BANK MMDA - USBGFS 9 09/01/2037 |
4.63% |
Cisco Systems Inc |
3.03% |
Danaher Corp |
3.55% |
Lowe's Cos Inc |
2.97% |
Las Vegas Sands Corp |
3.25% |
Constellation Brands Inc |
2.93% |
CME Group Inc |
3.21% |
Adobe Inc |
2.85% |
Texas Instruments Inc |
3.04% |
Alphabet Inc |
2.85% |
Performance quoted represents past performance. Past performance does not guarantee and is not a reliable indicator of future results. Investment returns and principal values will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than that shown.
Investment returns assume all distributions are reinvested and reflect all applicable fees and expenses. Benchmark index returns assume all distributions are reinvested. Indexes are unmanaged and, therefore, have no fees. Investors cannot invest directly in an index.
An investment in the fund is subject to risk and there can be no assurance the fund will achieve its investment objective. The risks associated with an investment in the fund can increase during times of significant market volatility. The principal risks of investing in the fund include: equity risk, growth and value investing risk, special risks associated with dividend paying stocks, option risk, interest rate risk, capital gain realization risks to taxpaying shareholders, and foreign security and emerging market risk. More detailed information regarding these risks can be found in the fund’s prospectus.
As a writer of a covered call option, the Fund foregoes, during the option’s life, the opportunity to profit from increases in the market value of the security covering the call option above the sum of the premium and the strike price of the call, but has retained the risk of loss should the price of the underlying security decline. In addition to its covered call strategy, the Fund may pursue an option strategy that includes the writing of both put options and call options on certain of the common stocks in the Fund’s portfolio. More detailed information regarding these risks can be found in the Fund’s prospectus.
The net asset value (“NAV”) per share for each fund and class is determined each business day at the close of regular trading on the New York Stock Exchange (typically 4:00 p.m. Eastern Time) by dividing the net assets of each fund and class by the number of shares outstanding of that fund and class.
Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the Fund.
The S&P 500® Index is a large-cap market index which measures the performance of a representative sample of 500 leading companies in leading industries in the U.S.
The CBOE S&P 500 BuyWrite® IndexSM (BXM) is a benchmark index designed to track the performance of a hypothetical buy-write strategy (i.e. holding a long position in and selling covered call options on that position) on the S&P 500® Index.