CVRD Leverages a Proven Covered Call Strategy to Target Higher Yields and Growth Potential
MADISON, WIS. – Madison Investments, an independently-owned investment firm managing $22.9 billion in assets, today announces the expansion of its suite of actively-managed ETFs with the launch of the Madison Covered Call ETF (NYSE: CVRD).
Madison Investments’ ETF suite is designed to help investors pursue income and capital appreciation by employing institutional-caliber, risk-controlled investment strategies. Today’s launch follows the debut of the firm’s first ETF, the Madison Dividend Value ETF (NYSE: DIVL), which invests in dividend paying stocks that exhibit above-market yield and growth potential. Madison Investments plans to expand the offerings in its ETF suite in the coming weeks with the launch of two active fixed income products: the Madison Aggregate Bond ETF (NYSE: MAGG) and the Madison Short Term Strategic Income ETF (NYSE: MSTI).
“Given the current investment environment, there is a palpable demand for strategies that pursue both stability and performance differentiated from traditional benchmarks,” says Steven Carl, Chair of the Executive Committee and Chief Distribution Officer. “Each active ETF utilizes a disciplined investment process to pursue consistent income and market-like growth with below-market risk. We believe these funds are a testament to our legacy of providing investment strategies that balance return potential with risk management.”
The Madison Covered Call ETF aims to provide consistent total return while producing a high level of income and gains from options premiums and dividends. Employing an active stock and active covered call writing strategy, CVRD offers a diversified income stream with potential for capital appreciation. It has an expense ratio of 0.90%. The Madison Covered Call ETF is managed by the experienced team of Ray Di Bernardo and Drew Justman, both CFAs and Portfolio Managers who bring a combined 60 years of industry experience.
Ray Di Bernardo notes, “Having actively managed covered call portfolios since 2004, our experience in this space is time-tested. With CVRD, we are extending our proven strategy to a broader audience drawn to the ETF format. Our commitment to active management and a traditional, single-stock covered call approach offers a compelling strategy for investors searching for higher-yielding products.”
For more information on the Madison Covered Call ETF and the Madison Dividend Value ETF, please visit madisonfunds.com/etfs.
About Madison Investments:
Madison Investments is an independent investment management firm based in Madison, WI. The firm was founded in 1974, has approximately $22.9 billion in assets under management as of June 30, 2023, and is recognized as one of the nation’s top investment firms. Madison Investments offers domestic fixed income, U.S. and international equity, covered call, multi-asset, insurance, and credit union investment management strategies.
For more information, please visit: https://madisoninvestments.com/
Media Contact:
Gregory FCA for Madison Investments
madisoninvestments@gregoryfca.com
Disclosures
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.
Diversification does not assure a profit or protect against loss in a declining market.
The writer of a covered call option forgoes, 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.
CVRD – 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.