ETV: The Premium That Wasn't (Rating Downgrade)

  • The Eaton Vance Tax-Managed Buy-Write Opportunities Fund has been a reliable way to transform equity market returns into dividends. Elevated volatility, as indicated by the VIX index, has returned, making the current macro environment more favorable for ETV. The resurgence of volatility above 20 is reminiscent of 2022, impacting the risk/return profile of ETV.