HVPW
Fund Stats as of 07/02/2015
Symbol HVPW
Listing Exchange NYSE Arca
CUSIP 00162Q 734
ISIN US00162Q7346
Inception Date 02/27/2013
Dividends Paid Bi-monthly
Fund Type Exchange Traded Fund
Market Price $23.02
Last Trade Price $23.03
NAV $22.97
NAV Change $-0.01
Total Net Assets $59,715,449
Total Market Value $43,236,911
Premium/Discount(%) 0.22%
Difference ($) $0.05
Volume 24,850
Shares Outstanding 2,600,002
Expenses as of 03/31/2015
Management Fee0.95%
Other Expenses0.00%
Total Operating Expenses0.95%
Fund Resources
Prospectus 
Quarterly Fact Sheet 
Statement of Additional Information 
U.S. Equity High Volatility Put Write Index Fund IIV File 
Resource Library  
opening bell


Investment Objective

The U.S. Equity High Volatility Put Write Index Fund (HVPW) seeks investment results that correspond generally to the performance, before the Fund’s fees and expenses, of an index called the NYSE Arca U.S. Equity High Volatility Put Write Index. The Index reflects the performance of a portfolio of exchange-traded put options on a selection of the largest capitalized stocks which also have listed options and which have the highest volatility, as determined by the NYSE Arca, Inc., the Fund’s index provider. Put options are financial instruments that give the owner/buyer the right, but not the obligation, to sell a specified quantity of a security at a set price called the “strike” price on or before an agreed upon expiration date.

Fund Characteristics

Selling puts is a frequently implemented income strategy. HVPW provides the beneficial features of put writing with the transparency and liquidity of the Exchange Traded Fund (ETF) structure. This results in benefits such as:

  • HVPW offers diversification by holding a portfolio of 20 names rolling every 2 months (i.e.120 puts per year).
  • HVPW has a total annual operating expenses of 0.95%.
  • HVPW holds U.S. Treasury Securities and short listed option positions.

ETFs are transparent because holdings are disclosed daily. ETFs are considered to have continuous liquidity because they allow for an individual to trade throughout the day.

Put Example Payout Diagram

payout diagram

The put options held by HVPW are 60 day listed exchange traded american style option contracts. The strike3 price of each put option included in the index and the fund must be as close as possible to 85% of the closing price of the option’s underlying stock price as of the beginning of each 60-day period.

3 The specified price at which an option contract may be exercised.