In times of returns falling flat, income becomes premium
WisdomTree Equity Premium Income Fund
The S&P 500 Index (SPY) has long been considered the ultimate representative index for the U.S. stock market. Many investors have an investment (or two) that track it. But when volatility rises, investors search for ways to reduce volatility while maintaining—or enhancing—their returns. Now, investors have the option to do that in one simple investment that can complement their existing holdings.
The WisdomTree Equity Premium Income Fund (WTPI) taps into a time-tested strategy used by professionals for decades—selling S&P 500 Index put options to seek income and reduce equity volatility. By capitalizing on the consistent premium from “at-the-money” put writing and the spread between implied and realized volatility, WTPI offers the potential for enhanced risk-adjusted returns compared to traditional equity or covered call strategies.
Why WTPI?
- Gain access to an option overlay strategy in a low cost** 40 Act vehicle
- Use to complement exposure to S&P 500 Index with potential for higher risk-adjusted returns
- Can help to lower portfolio beta, reduce downside risk and manage volatility