iShares ESG Select Screened S&P 500 ETF (XVV) Covered Calls

The iShares ESG Screened S&P 500 ETF is an exchange-traded fund that tracks the S&P 500 Sustainability Screened Index. The fund provides low-cost exposure to large-cap U.S. equities while excluding companies involved in controversial business activities such as tobacco, controversial weapons, and fossil fuel extraction. By maintaining a similar risk-return profile to the S&P 500, the fund allows investors to align their core domestic equity holdings with sustainability considerations.

You can sell covered calls on iShares ESG Select Screened 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 XVV (prices last updated Thu 4:16 PM ET):

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iShares ESG Screened S&P 500 ETF (XVV) is a sustainability-focused investment vehicle managed by BlackRock. It is designed to act as a core portfolio building block, offering a cleaner alternative to the standard S&P 500 by filtering out firms that fail specific environmental, social, and governance (ESG) criteria.

Investment Strategy and Holdings

The fund tracks the S&P 500 Sustainability Screened Index, which applies strict business involvement screens. As of early 2026, the fund excludes specific laggards in the tobacco and defense sectors but remains heavily weighted toward the Information Technology and Communication Services sectors. Its top holdings mirror the most successful names in the U.S. market, including NVIDIA, Apple, Microsoft, Amazon, and Meta Platforms. This ensures that the fund captures the same growth drivers as the broader market.

Competitive Landscape

XVV competes in the increasingly crowded ESG large-cap space. Its most direct optionable competitors include the Vanguard ESG U.S. Stock ETF and the iShares MSCI USA ESG Advanced ETF. For benchmark purposes, it is frequently compared to the traditional iShares Core S&P 500 ETF and the SPDR S&P 500 ETF Trust. These tickers are among the most liquid in the options market, making them ideal for investors seeking to implement income-generating strategies on a sustainable equity base.

Strategic Outlook and Performance

The outlook for XVV is supported by the continued shift of institutional capital toward ESG-compliant assets. Because the fund uses a "screening" rather than a "best-in-class" approach, it offers a very low tracking error compared to the S&P 500, making it an easy switch for cost-conscious investors. Innovation in the fund is driven by the quarterly rebalancing of the S&P sustainability screens, which dynamically remove companies that fall into controversy. As global regulations around carbon emissions and corporate responsibility tighten, the companies remaining in XVV are positioned to face fewer regulatory headwinds.

Management utilizes a full-replication strategy to ensure the fund remains a precise reflection of its sustainability-screened benchmark. For covered call writers, XVV provides a unique opportunity to generate income from a "socially responsible" portfolio without sacrificing the liquidity and premium stability associated with U.S. mega-cap stocks. This approach allows participants to maintain their ethical investment standards while still benefiting from the robust growth and dividend capacity of the leaders of the American economy.

Want more examples? XTN Covered Calls | XXI Covered Calls