Defiance ETFs has expanded its lineup of enhanced income options ETFs with the launch of the Defiance R2000 Enhanced Options Income ETF (NYSE Arca: IWMY). The fund is listed on the New York Stock Exchange.
The actively managed put-write fund uses daily options on the Russell 2000 Index to help augment income. IMWY intends to pay any distributions on a monthly basis.
The ETF aims to achieve consistent and outsized monthly yield distributions coupled with equity market exposure to the Russell 2000. It seeks enhanced income, constructed of Treasuries and Russell 2000 index options.
See more: New Defiance ETF JEPY Uses Daily Options to Augment S&P 500 Income
The fund seeks to generate outsized monthly distributions by selling options premium on a daily basis. It uses daily options to realize rapid time decay by selling in-the-money puts.
“IWMY has the potential to reshape the Russell 2000 options income strategies within the ETF landscape,” said Defiance ETFs CEO Sylvia Jablonski. She added that the fund could offer “investors a new paradigm for income generation.”
A Growing Suite of Enhanced Income Options ETFs
IWMY complements the issuer’s growing suite of enhanced income options ETFs. In September, Defiance ETFs launched the Defiance S&P 500 Enhanced Options Income ETF (JEPY ). JEPY uses daily options to augment income on the S&P 500.
It also listed that month the Defiance Nasdaq 100 Enhanced Options Income ETF (QQQY ). QQQY is an actively managed ETF that seeks enhanced income, constructed of Treasuries and Nasdaq-100 index options. Jablonski said in a press release announcing the launch of QQQY that Defiance ETFs is “seeking to unlock a new dimension of income generation within the ETF space.”
“Advisors are increasingly comfortable with ETFs that incorporate options in a more efficient manner,” said Todd Rosenbluth, head of research at VettaFi.
IWMY carries an expense ratio of 0.99%.
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