2 Funds for Reducing Equity-Market Risk
Silver-rated Gateway and Bronze-rated Swan Defined Risk both use covered-call strategies, yet they performed differently during August's pullback.
Josh Charlson: Today, we'll be talking about two long-short equity funds that employ covered-call strategies, also sometimes referred to as option-collar strategies.
The two funds are Silver-rated Gateway (GATEX), which has been around since 1977, and Swan Defined Risk (SDRAX), a Bronze-rated fund that's a more recent entrant to the fund world but which has existed in a separate account format since 1997.
Josh Charlson does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.