Purpose launches new options ETF

By Staff | May 22, 2019 | Last updated on May 22, 2019
1 min read

A new fund that gives investors access to the options market began trading Wednesday on the Toronto Stock Exchange.

The Purpose Enhanced Premium Yield Fund from Purpose Investments, Inc. is designed to generate income by selling put options to earn premiums. The fund aims to generate yield by selling puts at 3% to 5% out of the money, according to a release from Purpose Investments.

“It allows investors to access the options market without having to develop deep expertise in derivatives,” Purpose Investments CEO Som Seif said in a statement.

The fund has a management fee of 0.75%. It is also available in mutual fund versions.

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The staff of Advisor.ca have been covering news for financial advisors since 1998.