Each month, the iShares BuyWrite ETFs will distribute to shareholders both the call option premiums collected and the underlying funds’ monthly distributions. The iShares BuyWrite ETFs aim to increase yield potential for investors, debuting during the most challenging environment for fixed income in decades due to inflation, hawkish central banks and interest rate volatility.Įach iShares BuyWrite ETF seeks to track a designated index from Cboe Global Indices by owning shares of the underlying ETF and selling one-month call options at a strike price at or near the closing price of the ETF the day before the strategy writes the call options. Helping Investors Capital Markets Innovation The iShares Bond BuyWrite ETFs introduce these capabilities to fixed income, pioneering new possibilities for an asset class sitting at the center of so many long-term portfolios.” “Market participants have used a buy-write strategy on equities since options were first listed more than 50 years ago. “The iShares’ bond ETF platform has the world’s largest, comprehensive toolkit 1 for individuals and institutions by providing access to the $124 trillion fixed income market with essential building blocks for a wide variety of macroeconomic climates,” said Carolyn Weinberg, Global Head of Product for ETF and Index Investments, BlackRock. Each ETF packages two potential income sources into one ticker – premiums generated by selling monthly call options on the underlying ETFs ( TLT, HYG and LQD) and the yields from each of the underlying ETFs themselves. NEW YORK-(BUSINESS WIRE)-BlackRock today launched a first-of-its-kind suite of fixed income ETFs that provide access to buy-write investment strategies on baskets of fixed income securities: the iShares 20+ Year Treasury Bond BuyWrite Strategy ETF (Cboe: TLTW), iShares High Yield Corporate Bond BuyWrite Strategy ETF (Cboe: HYGW) and the iShares Investment Grade Corporate Bond BuyWrite Strategy ETF (Cboe: LQDW). Delivers Innovative Access to Treasury, High-Yield and Corporate Credit Markets

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