Main Management Debuts Buywrite Strategy ETF

The fund holds other ETFs and writes call options on them.

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Reviewed by: Heather Bell
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Edited by: Heather Bell

Main Management on Monday rolled out its third exchange-traded fund, a buywrite strategy that offers global exposure. The Main Buywrite ETF (BUYW) has a two-pronged approach in which it actively manages a portfolio of ETFs selected based on valuations and then writes call options on the ETFs it holds. 

BUYW comes with an expense ratio of 1.31% and lists on Cboe Global Markets. 

The new fund selects the equity ETFs it holds using a bottom-up approach that is determined by strategic targets Main Management develops based on global macroeconomic and capital market fundamentals.  

The fund then sells call options on its ETF holdings that cover anywhere from 0% to 100% of the value of the individual ETFs and cash investments in its portfolio, according to the prospectus, which also notes that the fund seeks income through both the dividends from the ETFs it holds and the premiums from the options it writes. 

Main Management’s other ETFs are all funds-of funds, holding other ETFs. The company launched its first ETF in September 2017. The Main Sector Rotation ETF (SECT) has $954 million in assets under management. 

 

Contact Heather Bell at [email protected]  

Heather Bell is a former managing editor of etf.com. She has also held editorial positions at Dow Jones Indexes and Lehman Brothers. Bell is a graduate of Dartmouth college and resides in the Denver area with her two dogs.