This morning I had the privilege of participating in a market-opening bell-ringing in New York City for a new ETF that is designed to track the CBOE NASDAQ-100 BuyWrite Index (BXN).
The new ETF is the Recon Capital NASDAQ-100 Covered Call ETF (ticker QYLD). In my brief remarks I noted that many investors now are searching for instruments with high yields and the potential for strong gains in times of low interest rates. Despite the fact that some investors think of bonds as low-risk safe-haven investments, many experts believe that bonds in today’s low-interest rate environment have quite a bit of downside risk; some key Treasury indexes fell in 2013 (see chart). To read studies by leading consulting firms (Cambridge Associates, Ibbotson Associates, Callan Associates, Hewitt EnnisKnupp and other leading firms) on how BuyWrite indexes could help you smooth out portfolio returns, please visit www.cboe.com/benchmarks.
(photo courtesy of NASDAQ OMX Group)