5 Derivative Income ETFs to Invest In

4. Invesco S&P 500 BuyWrite ETF (NYSE:PBP)

Invesco S&P 500 BuyWrite ETF (NYSE:PBP) tracks the performance of the CBOE S&P 500 BuyWrite Index. Invesco S&P 500 BuyWrite ETF (NYSE:PBP) invests at least 90% of its total assets in securities that comprise the CBOE S&P 500 BuyWrite Index and writes call options thereon. Investors are paid dividends from the underlying securities and the option premiums received are reinvested. The fund delivers a 0.69% distribution rate as of February 25.

Invesco S&P 500 BuyWrite ETF (NYSE:PBP) concentrates on large-cap value, blend, and growth stocks. A significant underlying holding of the exchange traded fund is UnitedHealth Group Incorporated (NYSE:UNH), a diversified healthcare company in the United States. 

On February 16, UnitedHealth Group Incorporated (NYSE:UNH) declared a quarterly dividend of $1.45 per share, in line with previous. The dividend is payable on March 22, to shareholders of record on March 14. 

Among the hedge funds monitored by Insider Monkey in Q4 2021, 96 were bullish on UnitedHealth Group Incorporated (NYSE:UNH), with combined stakes of $13.6 billion. Rajiv Jain’s GQG Partners is the largest stakeholder of the company among those 96 funds, with 3.85 million shares worth $1.93 billion. 

Here is what Third Point Management had to say about UnitedHealth Group Incorporated (NYSE:UNH) in its Q3 2021 investor letter:

“UnitedHealth is one of the largest healthcare companies in the world and a market leader in both its insurance and healthcare services (Optum) businesses. We initiated our position during the 2020 Presidential election at a time of heightened political and regulatory uncertainty.

We believe under its new CEO, Andrew Witty, UnitedHealth can not only preserve its market dominance and sustain industry-leading growth rates across most of its key segments but also enter new healthcare services markets. Witty is known as a mission-driven CEO who clearly articulates his view that providing high-quality, affordable health care services is a social good. He receives consistently high marks from former colleagues, and we believe that his leadership approach will ballast and even strengthen UNH’s already impressive management and employee ranks. The insurance and services businesses are synergistic and complementary, which entrenches United’s critical role in care financing, access, and management. This dynamic gives us confidence in the durability of United’s market leadership…” (Click here to see the full text)