From Seekingalpha · Nick Ackerman · · 1m
ETW Fund Offers Global Diversification And Options Income
ETW fund provides global equity exposure through options writing with a -10.88% discount.
In brief
ETW fund provides global equity exposure through options writing with a -10.88% discount. Eaton Vance Tax-Managed Global Buy-Write Opportunities Fund (ETW) offers global equity exposure with an index call-write strategy, currently trading at a -10.88% NAV discount. Originally reported by Seekingalpha.
ETW Fund Overview
Eaton Vance Tax-Managed Global Buy-Write Opportunities Fund offers global equity exposure with an index call-write strategy, currently trading at a -10.88% NAV discount.
Market Yield And Discount
ETW’s 8.24% market yield is 'enhanced' by its deep discount, with distributions primarily funded by option premiums and capital gains rather than underlying dividends.
Payout Sustainability
The fund’s payout appears sustainable at present, but remains sensitive to equity market downturns due to reliance on capital appreciation and options income.
Diversification Advantage
Global diversification and lower tech concentration than the S&P 500 may position ETW relatively well if U.S. equity valuations correct.
What matters most
Eaton Vance Tax-Managed Global Buy-Write Opportunities Fund (ETW) offers global equity exposure with an index call-write strategy, currently trading at a -10.88% NAV discount.
