iShares Core S&P 500 ETF (IVV) Covered Calls
The iShares Core S&P 500 ETF is an exchange-traded fund that tracks the investment results of an index composed of large-capitalization U.S. equities. The fund provides investors with exposure to 500 of the largest established U.S. companies across a wide range of industries. It is designed to serve as a low-cost, tax-efficient core holding for long-term investors seeking to capture the performance of the broader American stock market.
You can sell covered calls on iShares Core S&P 500 ETF to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for IVV (prices last updated Fri 4:16 PM ET):
| iShares Core S&P 500 ETF (IVV) Stock Quote | ||||||
|---|---|---|---|---|---|---|
| Last | Change | Bid | Ask | Volume | P/E | Market Cap |
| 684.76 | +0.43 | 684.62 | 684.67 | 5.3M | - | 507 |
| Covered Calls For iShares Core S&P 500 ETF (IVV) | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Net Debit | Return If Flat |
Annualized Return If Flat |
|
| Feb 20 | 685 | 5.10 | 679.57 | 0.8% | 36.5% | |
| Mar 20 | 685 | 13.20 | 671.47 | 2.0% | 20.3% | |
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Core Business and Products
IVV is one of the world’s largest exchange-traded funds, managed by BlackRock under the iShares brand. Its primary objective is to provide investment results that correspond generally to the price and yield performance of the S&P 500 Index. The fund’s core "products" are the underlying fractional ownership of the leading companies in the U.S. economy, offering:
- Broad Market Exposure: Diversification across eleven major sectors, including technology, healthcare, and financials.
- Institutional-Grade Liquidity: High trading volumes that allow for easy entry and exit for both retail and institutional investors.
- Cost Efficiency: A competitive structure that minimizes the drag on returns compared to actively managed mutual funds.
Competitive Landscape
The market for S&P 500 index trackers is highly competitive and dominated by a few massive players. IVV competes most directly with the SPDR S&P 500 ETF Trust, which is the oldest and most liquid fund in the category. Another primary competitor is the Vanguard S&P 500 ETF, which is frequently chosen by long-term buy-and-hold investors. While these funds track the same index, they compete on factors such as expense ratios, tracking error, and the efficiency of their securities lending programs. In the broader asset management space, BlackRock encounters competition from firms like State Street and Morgan Stanley.
Strategic Outlook and Innovation
The strategic focus for the fund involves maintaining its status as a foundational "building block" for modern investment portfolios. Innovation in this space is centered on enhancing tax efficiency through the "in-kind" redemption process and improving the precision of index tracking during periods of high market volatility. As digital wealth platforms and automated advisors continue to grow, the fund is positioned as a primary destination for automated capital flows. The management team remains committed to leveraging its scale to lower operational costs and integrate advanced environmental and social transparency data for institutional clients without deviating from the core index methodology.
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Want more examples? IVR Covered Calls | IVW Covered Calls
