ETW: Tax Efficiency Without The Safety Net

  • ETW offers steady high yields and NAV protection with tax-efficient payouts, a good option for income-focused investors seeking global diversification. Active stock selection and index option writing provide potential for alpha, but historical performance shows underwhelming results versus broad market indices like SPY. Drawdown and volatility reduction benefits are limited, with ETW failing to deliver meaningful downside protection or outperformance in flat or down markets.