NVDY: The Recent Sell-Off Shows Further Construction Flaws In This Fund

  • The underperformance of NVDY in February and March shows some key construction flaws in this fund. Covered-call strategies work best when they track assets with slightly elevated levels of volatility, but large moves create significant risks for the options strategies these investments use. NVDY's options strategy lacks flexibility. The fund is having trouble adapting to more fluid and volatile market conditions.