PBP: The Original Covered Call ETF Shows Us Why They Are All Risky

Summary

  • Invesco S&P 500 BuyWrite ETF, the first covered call ETF, offers a unique historical lens on the true risks of option-driven ETFs.
  • Investors often underestimate the structural risks of covered call ETFs, mistaking past resilience for inherent safety.
  • My experience with PBP highlights that these ETFs have not yet faced a prolonged, grinding market downturn.
  • A major, sustained market calamity could expose vulnerabilities in covered call ETFs like PBP that investors currently overlook.
  • This idea was discussed in more depth with members of my private investing community, Sungarden Investors Club. Learn More »

ETF - Exchange Traded Funds

AlexSecret

I'm writing this article in part to settle a bet. It is a bet I have with myself. I'm betting that most investors under age 40 have not even heard of the Invesco S&P 500 BuyWrite ETF (

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