Buy-write ETFs expected this month

PowerShares Capital Management plans to introduce the first buy-write ETFs this month, according to a news release. On Dec. 20, the firm will list the PowerShares DJIA BuyWrite and S&P BuyWrite portfolios on NYSE Arca and the Nasdaq-100 BuyWrite Portfolio on Nasdaq. “The buy-write investment strategy is one in which the portfolio holds a basket of stocks and sells a succession of at-the-money call options with one month left to expiration,” said Bruce Bond, president and CEO of PowerShares. “This strategy is popular with asset managers, as it can provide additional income to a portfolio through call option premiums.”