{"id":16079,"date":"2018-05-28T23:00:00","date_gmt":"2018-05-28T22:00:00","guid":{"rendered":"http:\/\/starthostunlimiteddmffassi-ss.stackstaging.com\/etfworld.co.uk\/index.php\/2018\/05\/28\/wisdomtree-launches-cboe-s-p-500-putwrite-ucits-etf-putw\/"},"modified":"2018-05-28T23:00:00","modified_gmt":"2018-05-28T22:00:00","slug":"wisdomtree-launches-cboe-s-p-500-putwrite-ucits-etf-putw","status":"publish","type":"post","link":"https:\/\/www.etfworld.com\/co.uk\/wisdomtree-launches-cboe-s-p-500-putwrite-ucits-etf-putw\/","title":{"rendered":"WisdomTree Launches Cboe S&P 500 PutWrite UCITS ETF (PUTW)"},"content":{"rendered":"

WisdomTree launches the WisdomTree Cboe S&P 500 PutWrite UCITS ETF (PUTW), on the London Stock Exchange….<\/span><\/span><\/p>\n

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Sign up for our weekly Newsletter and receive the latest ETF and ETC news. Click here to register for your free copy<\/strong><\/span><\/span><\/span><\/a><\/span><\/p>\n

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Christopher Gannatti, WisdomTree Head of Research in Europe<\/strong><\/strong><\/p>\n

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PUTW offers investors the potential for mitigating volatility and delivering higher risk-adjusted returns compared to the S&P 500\u00ae.  <\/p>\n

The S&P 500 (SPX) is one of the most widely followed indexes for US stock market exposure and when volatility rises, many investors search for ways to reduce their risk while maintaining\u2014or enhancing\u2014their returns.<\/p>\n

Rafi Aviav, WisdomTree Head of Product Development in Europe, said,<\/strong> \u201cAs investors search for investment opportunities that lie outside traditional asset classes and beyond common risk factors, PUTW offers a unique source of return by delivering an institutional options strategy in a widely accessible UCITS ETF wrapper.\u201d  <\/p>\n

\u201cPUTW employs an options strategy which includes, on a monthly basis, selling (or \u201cwriting\u201d) at-the-money S&P 500 put options and investing the proceeds from that sale in US treasury bills.  For assuming the risk of market losses through the put positions, the ETF earns a \u2018volatility risk premium\u2019 which can diversify investors\u2019 sources of return and reduce the volatility of equity returns in portfolios,\u201d he said.<\/p>\n

WisdomTree has worked with Cboe Global Markets, Inc. (\u201cCboe\u201d), a global leader in options investing, on PUTW and the ETF aims to track the Cboe S&P 500 PutWrite (\u201cPUT\u201d) index, which has a live track record dating back to 2007.<\/p>\n

PUT Index: Historically Provides a Measure of Downside Protection<\/p>\n

Christopher Gannatti, WisdomTree Head of Research in Europe said,<\/strong> \u201cWith the S&P 500 at or near record highs and investors having enjoyed a strong run of performance, we believe that it could be time to position for greater future volatility and downside risk. This strategy is designed with that in mind, as the option premiums collected cushion downside risk and those premiums also typically rise during bouts of market volatility.\u201d<\/p>\n

\u201cOf course, if markets continue to grind higher, there is also an inherent correlation to the S&P 500, and the strategy was able to deliver a double digit return in 2017, a year marked by the absence of volatility in U.S. equities,\u201d he added.<\/strong><\/p>\n

Historically PUT, the index PUTW tracks, had lower risk, a higher Sharpe ratio (a measure of risk-adjusted returns) and a lower beta compared to the S&P 500. PUT consistently displayed a much smaller drawdown during market downturns; providing 98% of the return of the S&P 500, but only 66% of the volatility from June 30, 1986 through year-end 20171.  <\/p>\n

Since June 1986, the PUT Index outperformed 96% of the time when the S&P 500 experienced a daily negative return and 92% of the time during a negative monthly return2. <\/p>\n

PUTW: Under the Hood<\/strong><\/p>\n

Exposure: Invests in one- and three-month Treasury bills, and sells or \u201cwrites\u201d S&P 500 put options<\/p>\n

Rebalancing: Portfolio is rebalanced on a monthly basis when the Fund rolls the monthly options<\/p>\n

Options: European-style 1-month S&P 500 options, written \u201cat the money\u201d at the time of monthly roll<\/p>\n

Fully collateralised: No leverage is employed, and the number of SPX options sold varies month to month and is chosen to ensure full collateralisation, in which the total value of the treasury bill investments must equal the maximum possible loss from final settlement of the puts<\/p>\n

Product Information<\/strong><\/p>\n\n\n\n\n\n\n
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Fund<\/strong><\/p>\n<\/td>\n

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Ticker<\/strong><\/p>\n<\/td>\n

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ISIN<\/strong><\/p>\n<\/td>\n

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Exchange<\/strong><\/p>\n<\/td>\n

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Trading currency<\/strong><\/p>\n<\/td>\n<\/tr>\n<\/thead>\n

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WisdomTree Cboe S&P 500 PutWrite UCITS ETF \u2013 USD Acc<\/p>\n<\/td>\n

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PUTW<\/p>\n<\/td>\n

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IE00BD49R243<\/p>\n<\/td>\n

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LSE<\/p>\n<\/td>\n

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USD<\/p>\n<\/td>\n<\/tr>\n

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WisdomTree Cboe S&P 500 PutWrite UCITS ETF \u2013 USD Acc<\/p>\n<\/td>\n

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PUTS<\/p>\n<\/td>\n

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IE00BD49R243<\/p>\n<\/td>\n

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LSE<\/p>\n<\/td>\n

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GBx<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

Source: ETFWorld<\/p>\n

<\/p>\n

<\/span><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

WisdomTree launches the WisdomTree Cboe S&P 500 PutWrite UCITS ETF (PUTW), on the London Stock Exchange….<\/p>\n","protected":false},"author":3,"featured_media":18265,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"telegram_tosend":false,"telegram_tosend_message":"","telegram_tosend_target":0,"footnotes":"","_wpscp_schedule_draft_date":"","_wpscp_schedule_republish_date":"","_wpscppro_advance_schedule":false,"_wpscppro_advance_schedule_date":"","_wpscppro_dont_share_socialmedia":false,"_wpscppro_custom_social_share_image":0,"_facebook_share_type":"","_twitter_share_type":"","_linkedin_share_type":"","_pinterest_share_type":"","_linkedin_share_type_page":"","_instagram_share_type":"","_medium_share_type":"","_threads_share_type":"","_google_business_share_type":"","_selected_social_profile":[],"_wpsp_enable_custom_social_template":false,"_wpsp_social_scheduling":{"enabled":false,"datetime":null,"platforms":[],"status":"template_only","dateOption":"today","timeOption":"now","customDays":"","customHours":"","customDate":"","customTime":"","schedulingType":"absolute"},"_wpsp_active_default_template":true},"categories":[19],"tags":[172,148],"class_list":["post-16079","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-etf-lse","tag-etf-wisdomtree","tag-wisdom-tree-europe-boost-etp"],"blocksy_meta":{"styles_descriptor":{"styles":{"desktop":"","tablet":"","mobile":""},"google_fonts":[],"version":6}},"_links":{"self":[{"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/posts\/16079","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/comments?post=16079"}],"version-history":[{"count":0,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/posts\/16079\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/media\/18265"}],"wp:attachment":[{"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/media?parent=16079"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/categories?post=16079"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/tags?post=16079"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}