ETB: Broader Market Volatility Brings Some Discount Widening
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Nick AckermanInvesting GroupFollow5ShareSavePlay(10min)CommentsSummaryEaton Vance Tax-Managed Buy-Write Income Fund offers S&P 500 exposure with a call overwrite strategy and provides a monthly distribution.Despite the call-writing cap on upside, ETB has nearly matched S&P 500 total returns since our last update and offers an 8.59% distribution yield, primarily funded by portfolio capital gains.ETB’s discount has remained fairly wide since its late 2022 distribution cut, but it has widened out a bit more recently with broader market volatility.This idea was discussed in more depth with members of my private investing community, CEF/ETF Income Laboratory. Learn More » DKosig/iStock via Getty Images Written by Nick Ackerman, co-produced by Stanford Chemist The Eaton Vance Tax-Managed Buy-Write Income Fund (ETB) is a closed-end fund that provides investors with exposure to an S&P 500 Index-like portfolio and applies aThis article was written byNick Ackerman16.05K FollowersFollowNick Ackerman is a former financial advisor using his experience to provide coverage on closed-end funds and exchange-traded funds. Nick has previously held Series 7 and Series 66 licenses and has been investing personally for over 14 years.He contributes to the investing group CEF/ETF Income Laboratory along with leader Stanford Chemist, and Juan de la Hoz and Dividend Seeker. They help members benefit from income and arbitrage strategies in CEFs and ETFs by providing expert-level research. The service includes: managed portfolios targeting safe 8%+ yields, actionable income and arbitrage recommendations, in-depth analysis of CEFs and ETFs, and a friendly community of over a thousand members looking for the best income ideas. These are geared towards both active and passive investors. The vast majority of their holdings are also monthly-payers, which is great for faster compounding as well as smoothing income streams. Learn More.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.