Key stats
About iShares Trust iShares Russell 2000 BuyWrite ETF
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Inception date
Mar 14, 2024
Structure
Open-Ended Fund
Distributes
Capital Gains
Max ST capital gains rate
39.60%
Max LT capital gains rate
20.00%
Tax on distributions
Ordinary income
Primary advisor
BlackRock Fund Advisors
Distributor
BlackRock Investments LLC
IWMW aims to mirror the performance of an index that combines the iShares Russell 2000 ETF (ticker: IWM) with the sale of one-month call options to generate income. This strategy enables the fund to benefit from market movements of US small-cap stocks. The fund actively manages its options positions by adjusting strike prices to optimize returns. Additionally, the fund utilizes European-style call options and ensures full coverage by writing call options equivalent to the full notional number of shares of IWM, striving to enhance income generation. It selects call options closest to 102% of the Option Index's value one day before the roll date, with adjustments made if premiums dip below certain parameters. Monthly distributions consist of option premiums and dividends capped at 2% of the fund's NAV per month. While the fund strives to maximize income potential, it is important to note that it also completely shares in the downturns experienced by IWM.
Classification
What's in the fund
Exposure type
ETF
Stock breakdown by region
Displays a symbol's price movements over previous years to identify recurring trends.