The US asset manager’s INK fund uses active call writing and tax-loss harvesting as competition intensifies across derivative-income ETFs.
Options-income ETFs are becoming more varied as asset managers compete on how much equity upside investors give up for income, how actively option exposure is managed and the tax treatment of distributions. Covered call strategies now range from broad-market funds to products linked to individual stocks AllianceBernstein (AB) joined the market this month with the AB Equity Premium Income ETF (INK), which combines broad US equity exposure with an actively managed covered call strategy and tax