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Posted by
Two Blokes Jun 27 -
Filed in
Stock
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3 views
HYGW implements a passive strategy of holding the iShares iBoxx High Yield Corporate Bond ETF and systematically selling one-month covered call options on 100% of its holdings. While HYGW exhibits lower volatility than HYG, it has consistently underperformed HYG in normalized economic environments and during shallow market drawdowns. HYGW demonstrates its value during significant market stress or "true credit events" (like the March 2023 regional banking crisis), where the option premiums received significantly buffer the downside.
