PutWrite ETF Family Planned

A recent flurry of filings from WisdomTree outline the issuer’s plans for a full family of ETFs that offer exposure to put-write options strategies. The firm already offers the $239 million WisdomTree CBOE S&P 500 PutWrite Strategy Fund (PUTW) and the $5 million WisdomTree CBOE Russell 2000 PutWrite Strategy Fund (RPUT).

The funds WisdomTree is looking to add to its lineup include:

• WisdomTree High Yield Corporate Bond PutWrite Strategy Fund
• WisdomTree Long-Term Treasury PutWrite Strategy Fund
• WisdomTree International PutWrite Strategy Fund
• WisdomTree Emerging Markets PutWrite Strategy Fund

Put-write strategies involve selling put options on an asset and receiving the premiums from selling the options as profit. PUTW and RPUT both track indexes that represent a strategy that writes put options on the S&P 500 and Russell 2000 indexes, respectively.

However, the four proposed funds are actively managed and simply look to earn premiums by selling put options on ETFs covering their respective asset classes. The filings do not indicate which ETFs would be represented in the pending funds, but it’s likely a safe bet WisdomTree would involve its own in-house ETFs whenever possible.

The filings did not include tickers, expense ratios or a listing exchange.

Contact Heather Bell at [email protected]