SLVOCredit Suisse X-Links Silver Shares Covered Call ETN
SLVO Fund Description
SLVO offers the returns of a covered-call strategy comprising long shares of a physical silver ETF (SLV) and short 1-month call options with a strike price of 106% of SLV.
SLVO Factset Analytics Insight
SLVO is neither the choice for those looking for exposure to physical silver nor does it provide pure exposure to silver futures. SLVO is structured as an ETN so it promises to track silver (and options on silver), not to hold it. Furthermore, its index has a notional short call position against the notional long position in the physically backed silver ETF, SLV. The calls are set to about 106% of the SLV’s price level. The covered call strategy gives investors indirect exposure to silver, but with limited upside as the nominal long position will get called away in periods of sharply rising prices or in volatile market environments. The tradeoff is yield as premiums from writing calls on an otherwise yield-less asset. SLVO aims to distribute the yield monthly—atypical for an ETN.
SLVO Portfolio Management
SLVO Tax Exposures
SLVO Fund Structure
SLVO Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of SLVO. SLVO is rated a 5 out of 5.
SLVO Sector Breakdown
SLVO Tenor Strategy
SLVO holds physical bullion. Prices will reflect the current spot market values.
SLVO Rolling Strategy
Since SLVO holds physical bullion rather than futures contracts, it does not have a roll strategy.